Blue Star Q1 Profit Declines 15% to Rs 102.5 Cr, Revenue Rises to 3,378 Cr

New Delhi: Air-conditioning and commercial refrigeration system company Blue Star Ltd on Thursday reported a 15.15 per cent year-on-year decline in its consolidated net profit to Rs 102.51 crore in the June quarter of FY27.

The company had posted a net profit of Rs 120.82 crore in the April-June quarter a year ago, according to a regulatory filing.

Its revenue from operations increased 13.26 per cent to Rs 3,377.92 crore in Q1 FY27, compared to Rs 2,982.25 crore in the year-ago period.

Blue Star’s total expenses stood at Rs 3,273.06 crore, up 15.5 per cent YoY, in the quarter under review.

The company recorded strong revenue growth during the quarter “despite multiple headwinds, including an unprecedented escalation in commodity prices calling for an increase in selling prices, the delayed onset and abrupt end of the summer season and a significant inventory pile-up of old Room ACs in the trade”, Blue Star said in its earnings statement.

A key positive in the quarter was the strong inflow of data centre MEP project orders, reflecting the sustained momentum in this high-growth segment.

Blue Star’s revenue from the electro-mechanical projects and commercial air conditioning systems segment increased 15.05 per cent to Rs 1,625.05 crore in Q1 FY27.

“During the quarter, the company witnessed strong order bookings in the Projects business, driven by investments in data centres. However, order inflow from other market segments, including commercial offices, factories and infrastructure, remained sluggish as cost escalations arising from the West Asia crisis led to the deferment of order finalisations,” it said.

Similarly, its revenue from unitary products, which houses its consumer-facing room AC business, was up 12.66 per cent to Rs 1,689.31 crore in the first quarter of FY27.

However, the profit of the segment was impacted to Rs 49.69 crore in the June quarter, from Rs 87.47 crore in the corresponding quarter. This was “owing to the delayed onset of the summer season, there was pressure to liquidate the inventory pileup with the trade during the quarter.” While Blue Star attempted to pass on part of the impact of cost escalation through primary sales, market operating prices remained subdued.

The company “was unable to achieve the desired primary sales volume growth, which in turn impacted margins. The Commercial Refrigeration business witnessed a decline during the quarter as demand for deep freezers from ice cream manufacturers remained muted,” according to the earnings statement.

The company expects demand to pick up during the forthcoming festival season, it added.

Revenue of the Professional Electronics and Industrial Systems Segment declined by 9.74 per cent to Rs 63.56 crores.

In the March quarter, Blue Star’s total income, which includes other income, was at Rs 3,398.68 crore, up 13.35 per cent.

Over the outlook, Chairman & Managing Director Vir S Advani said, “We will remain focused on controlling operating costs and maintaining a strong balance sheet. While the medium-term fundamentals of the HVAC&R industry remain strong, the ongoing conflict in West Asia and the resulting market uncertainties warrant a cautious outlook for the remainder of the financial year.” Shares of Blue Star Ltd on Thursday settled 4.55 per cent lower at Rs 1,575 apiece on the BSE.

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