Blue Star (500067) Q4 24/25 earnings summary

Executive summary

• Achieved record consolidated income for FY25, surpassing ₹12,000 crore, with net profit before exceptional items up 40% to ₹581 crore and profit before exceptional items up 38.6% to ₹772.4 crore, reflecting consistent post-COVID growth.

• Maintains a robust balance sheet, continues to invest in manufacturing, R&D, and ESG initiatives, and received industry recognition for operational excellence.

• Board approved audited results for FY25, with statutory auditors issuing unmodified reports and a final dividend of ₹9 per share recommended.

• All-round performance except for commercial refrigeration, which was flat due to regulatory changes but rebounded from April.

• Room air conditioner business grew significantly, gaining 100 basis points in market share, with strong Q4 growth and new premium models launched.

Financial highlights

• FY25 consolidated revenue from operations grew 24% year-over-year to ₹11,967.65 crore; Q4 FY25 revenue rose 21% to ₹4,018.96 crore.

• EBITDA for FY25 improved 31.7% to ₹875.9 crore (margin 7.3%), and EPS climbed 32% to ₹28.76.

• Net profit for FY25 was ₹591.28 crore (4.9% of revenue), up from ₹414.31 crore in FY24.

• Dividend of ₹9 per share recommended, up from ₹7 per share last year.

• Net cash position as of March 31, 2025, was ₹640 crore, up from ₹456 crore a year earlier.

Outlook and guidance

• Optimism for FY26 driven by a strong order book, expected demand from manufacturing, data centers, and a positive outlook for room AC and commercial refrigeration.

• Guidance for segment margins in FY26: segment one at 7.5%, segment two at 8.5%, with a stretch target of 9% if conditions are favorable.

• Room air conditioner market expected to grow at a 19% CAGR through 2030; commercial air conditioning at 12-12.5% CAGR; commercial refrigeration has 30% growth potential.

• Plans to strengthen international presence, especially in the USA and Europe.

• Order book as of March 31, 2025, stands at ₹6,263 crore, up 9.9% year-over-year.