Blue Star Limited (BLUESTARCO) — Announcement | 13 August 2026

Blue Star Limited reported Q1 FY27 revenue of Rs.3,378 Crore, up 13.3% YoY, but PBT before exceptional items fell 23.7% to Rs.125.6 Crore due to margin pressure from commodity inflation, currency depreciation, and delayed summer season. Segment II (Unitary Products) saw margins collapse to 2.9% from 5.8% a year ago amid refrigeration degrowth and inventory liquidation, while Segment I grew 15.1% with 6.8% margins. Management highlighted a robust Rs.7,764 Crore order book and Rs.900 Crore net cash, with data center MEP projects contributing Rs.1,500 Crore order inflow. They expect margin recovery to 6.5%+ in Segment II and 6.5-7% in Segment I by Q3-Q4 FY27, targeting 20% revenue contribution from data center MEP by FY29. The company revised MEP revenue guidance upward to 12% CAGR for FY27, citing strong data center order inflows of Rs.3,000 Crore. Capex for FY27 is projected at Rs.300-350 Crore, with channel inventory normalizing to 45-60 days. Export revenues are projected to grow from $55-60 million (FY25) to $80-85 million (FY26), with an additional $100 million expected by FY28, primarily from the U.S. market. Management remains confident in long-term structural growth (18% CAGR) but acknowledges near-term headwinds from tariffs, exchange rates, and subsidy volatility.