Blue Star Limited has reported a robust 21% increase in its consolidated revenue for the second quarter of the financial year 2027 (Q2FY27), reaching Rs 2930.95 crores. The company’s operating profit also saw a notable rise, growing by 10.5% to Rs 202.58 crores. This performance was primarily driven by a strong demand for room air conditioners (ACs) during an extended summer season, despite ongoing pressures from rising material costs.
The company’s revenue from operations for the quarter ending September 30, 2026, rose from Rs 2422.37 crores in the previous year. However, the operating profit margin slightly decreased to 6.9% from 7.6% in Q2FY26, reflecting the challenges posed by increased material costs and the limited ability to pass these costs onto consumers. The net profit for the quarter increased significantly by 25.4% to Rs 123.91 crores, aided by an exceptional gain from the sale of the MedTech business.
Segment-wise, the Unitary Products Segment, which includes room ACs and commercial refrigeration, recorded a substantial revenue growth of 29.4%, although margins were under pressure due to cost escalations. The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment saw a revenue increase of 16.3%, with expectations of significant order inflows in the coming months. Meanwhile, the Professional Electronics and Industrial Systems Segment experienced a 51.2% revenue surge, bolstered by the divestment of the MedTech business and strong industrial solutions demand.
Looking ahead, Blue Star’s Chairman and Managing Director, Vir S Advani, expressed optimism about sustaining revenue growth momentum in the second half of FY27. He highlighted the potential for significant order inflows from data centre projects and a revival in demand across commercial air conditioning and refrigeration sectors. However, he cautioned that factors such as a deficient monsoon and higher interest rates could impact near-term demand. Nonetheless, the resolution of international trade issues and geopolitical tensions could provide favourable conditions for growth. The company remains focused on enhancing profitability through price revisions, cost optimisation, and improved operational efficiencies.
