Blue Star Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Published 20 Aug 2026 | Consumer Durables | Market Cap: ₹31.1K Cr

Room Air-Conditioner (RAC) segment: - Q3 FY26 expected 10% growth over previous year despite challenges. Segment-I (Electro-Mechanical Projects and Commercial Air Conditioning): - Expected CAGR of 12% over next five years in Commercial Air-Conditioning.

From Blue Star's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Price

₹1,511.9

Market Cap

₹31.1K Cr

P/E Ratio

58.8

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Blue Star — Quarterly revenue & net profit

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹4.1K Cr, net profit ₹227 Cr.

Full financials →

📊 Revenue & Sales Performance

→Room Air-Conditioner (RAC) segment:
→ - Q3 FY26 expected 10% growth over previous year despite challenges.
→ - Potential for 7%-10% price increase post energy label change from Jan 1, 2026.
→ - Inventory high at 65 days; managing production to match sales.
→ - Long-term growth outlook positive despite short-term weather disruptions.
→Commercial Air-Conditioning (Segment-I):
→ - Expected CAGR of 12% over next 5 years.
→ - Projects business growth guidance at 10%-15%.
→ - No deceleration expected despite current muted order inflows.
→Commercial Refrigeration:
→ - Expected growth of 7%-8% in FY26.
→ - Expansion into Tier 2 and 3 markets, enhanced product range.
→Overall caution in near term due to weather and inventory but optimistic for FY27 and beyond.
→Focus on disciplined margins and cash flow over chasing aggressive growth.

📈 Profitability & Margins

→Segment-I (Electro-Mechanical Projects and Commercial Air Conditioning):
→ - Expected CAGR of 12% over next five years in Commercial Air-Conditioning.
→ - Projects business growth guided at 10% with good cash flow and margin.
→ - No indication of near-term deceleration; business capex is cyclical.
→ - Segment-I margin improved to 8.8% in Q2 FY26; expected to hold or improve moderately.
→Segment-II (Unitary Products - Room Air-Conditioner and Commercial Refrigeration):
→ - Room AC volume growth expected but with margin pressure due to high inventory and energy label changes.
→ - Year-end margin guidance revised down to 7%-7.5% from earlier 8%-9.5%.
→ - Anticipated pricing pressure to manage inventory before new energy norms.
→ - Commercial Refrigeration projected growth ~7.5%-8% for FY26.
→Overall:
→ - Cautious near-term outlook due to weather disruptions and GST changes.
→ - Focus on margin discipline, expense rationalization, and inventory management.
→ - Long-term growth strong, with consistent margin improvement efforts and new product launches.

🏗️ Capital Expenditure Plans

→Blue Star’s capex is ongoing and a significant factor alongside working capital in cash flow considerations.
→The company continues to invest in manufacturing capabilities, notably increasing local production to reduce import dependency and better manage inventory.
→Investments are being made to enhance reliability and digital sophistication of products, especially in Segment-I (Commercial Air-Conditioning).
→There is ongoing investment in product development, including high-tech chillers and exploration of liquid cooling solutions for data centers, though no launches expected before end of FY26.
→Expense rationalization and cost control efforts continue to improve margins and working capital efficiency.
→The company emphasizes balancing growth investments with margin discipline and aims to keep capex aligned with long-term strategy without overly pressuring profits.

💰 Fundraising & Capital Structure

→No specific mention of any new fundraising through debt or equity in the current quarter.
→The company has moved from a net cash position in previous years to a net borrowing position as of September 30, 2025, mainly due to inventory buildup and ongoing capex.
→Management highlighted that the borrowing levels depend heavily on year-end inventory reduction and Q4 sales performance; if conditions improve, borrowing levels should come down.
→No explicit plans were stated about fresh equity or debt issuance.
→Focus remains on managing working capital, capex, and operational efficiency to improve cash flows rather than raising new funds.
→Any future capital raising would hinge on business performance in the last quarter and market conditions.

📋 Order Book & Pipeline

→As of September 30, 2025, the carried-forward order book stood at Rs. 7,120 crore, a 7.9% increase compared to Rs. 6,598 crore on September 30, 2024.
→The carried-forward order book as of March 31, 2025, was Rs. 6,263 crore.
→Electro-Mechanical Projects carried-forward order book was Rs. 4,840 crore as of September 30, 2025, down 3.9% from Rs. 5,037 crore on September 30, 2024.
→Order inflow for Q2 FY26 was flat at Rs. 1,922 crore compared to Rs. 1,900 crore in Q2 FY25.
→Order finalizations in Electro-Mechanical Projects were muted during Q2 FY26 despite good enquiry inflows.
→Execution in infrastructure projects remains slow, but other segments like buildings, data centers, and manufacturing are doing well.

Key Metrics

What Blue Star's management said in earlier quarters

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Frequently Asked Questions

What were Blue Star Q2 FY26 results?

What is Blue Star share price analysis?

Blue Star currently shows a neutral. The stock trades at a P/E of 58.8 with a market cap of ₹31,087 Cr. Investors should review the full earnings analysis for detailed insights.

Is Blue Star planning capital expenditure?

Blue Star’s capex is ongoing and a significant factor alongside working capital in cash flow considerations.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.