Blue Star Ltd

- 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.

- 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.

- 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.

- 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.

- 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.