Blue Star (500067) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 saw consolidated revenue growth of 4.2% year-over-year to ₹2,925 crore, with EBITDA up 5% and profit before tax down 2% due to a one-time labor code-related expense.

• Management remains focused on a strong Q4 and FY 2027, expecting improved performance as the summer season approaches.

• Approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025.

• Re-appointment of Managing Director and new appointments to the Board, including an Executive Director and an Independent Director.

Financial highlights

• Q3 FY 2026 consolidated revenue grew 4.2% year-over-year to ₹2,925 crore; EBITDA rose to ₹221 crore with a stable margin of 7.5%.

• Q3 net profit dropped to ₹80.55 crore from ₹132.46 crore, impacted by a one-time labor code-related expense of ₹56 crore.

• PBT before JV and exceptional items was ₹165 crore, slightly down from ₹167 crore last year.

• Nine months revenue: ₹8,329.93 crore (up from ₹7,948.69 crore YoY); net profit: ₹300.15 crore (down from ₹397.28 crore YoY).

• Net borrowings increased to ₹352 crore from a net cash position of ₹102 crore a year ago.

Outlook and guidance

• Q4 FY 2026 is expected to be strong for room air conditioners, commercial air conditioning, and refrigeration products.

• FY 2027 growth guidance: Electro-Mechanical Projects at 8%-10% CAGR, commercial refrigeration at 12%-15% CAGR, and room air conditioners at 18%-20% CAGR.

• Margin guidance for Q4 FY 2026 and FY 2027 is 8.5% for unitary products and around 7% for segment one.

• Price increases of around 10% are anticipated due to energy label changes, commodity inflation, and currency depreciation.

• International expansion in the US and Europe progressing despite tariff uncertainties.