1. Opening Hook
Remember when summers sold air-conditioners, not excuses? Blue Star just reminded us that weather forecasts can wreck more than picnics. Between rain that wouldn’t stop and GST that dropped mid-season, the company had to navigate the monsoon blues with a wet spreadsheet and a dry smile.
Still, the management insists the movie’s second half (read: H2FY26) will have a better climax. Popcorn’s on standby — this AC story might just heat up yet. ☀️
2. At a Glance
- Revenue up 6.4%– Growth so modest it probably didn’t need a CFO briefing.
- EBITDA ₹183.4 Cr (vs ₹149.3 Cr)– Margins cooled at 7.6%, but still warmer than last year’s 6.6%.
- Net Profit ₹99 Cr (+2.8%)– Barely beat inflation, but hey, it’s green.
- PBT ₹133 Cr (+1.3%)– The accountant’s version of “meh.”
- Order Book ₹7,120 Cr (+7.9%)– Projects waiting for clear skies and government paperwork.
- Net Borrowing ₹417 Cr– From net cash to net debt, thanks to capex and climate chaos.
3. Management’s Key Commentary
“It was a tough quarter — a rain-interrupted match.”(Translation: The Duckworth-Lewis method now applies to AC sales too.) 🌧️
“We believe H2 will be better, but the shortfall may not be covered.”(Translation: Please don’t ask about FY guidance.)
“Inventory stands at 65 days; ideally, it should be 45.”(Translation: We’re running a warehouse, not just a brand.) 😏
“Commercial AC and Project business remain steady.”(Translation: The B2B guys saved the B2C party — barely.)
“We continue to gain market share even in a tough year.”(Translation: Everyone failed, we failed slightly less.)
“We’ll end happy if industry stays flat this year.”(Translation: The new definition of optimism.)
“Rain keeps interrupting; it’s all Duckworth-Lewis method.”(Translation: Weather apps are now part of business strategy.)
4. Numbers Decoded
| Metric | Q2 FY25 | Q2 FY26 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue (₹ Cr) | 2,276 | 2,422 | +6.4% | Growth smaller than GST cut. |
| EBITDA (₹ Cr) | 149.3 | 183.4 | +22.8% | Margins held up despite monsoon leaks. |
| EBITDA Margin (%) | 6.6 | 7.6 | +100 bps | Efficiency saved face. |
| PBT (₹ Cr) | 131 | 133 | +1.3% | Flat as last summer’s sales. |
| PAT (₹ Cr) | 96 | 99 | +2.8% | At least it’s positive. |
| Order Book (₹ Cr) | 6,598 | 7,120 | +7.9% | Future looks booked — delivery TBD. |
| Net Borrowing (₹ Cr) | -185 | 417 | — | Capex and clouds both poured in. |
Margins improved, but topline stayed soggy.
5. Analyst Questions
Q:“Margins improved despite weak sales — how?”A:“Mix and manufacturing efficiency.”(Translation: Luck and spreadsheets.)
Q:“Inventory levels at 65 days — too high?”A:“Yes, everyone’s loaded; liquidation is priority.”(Translation: Discounts incoming.)
Q:“Guidance cut from +5% to flat?”A:“Festive sales fizzled post-GST; hope rests on summer.”(Translation: Please pray for heat.)
Q:“Any slowdown in Project orders?”A:“Enquiries steady, execution slow.”(Translation: India’s infrastructure waits for paperwork.)
Q:“Cash position?”A:“Capex and working capital swung us into net debt.”(Translation: Rainfall also affects cash flow.)
6. Guidance & Outlook
Management expectsflat to -15% growthin FY26, blaming unseasonal rains, GST timing, and inventory pile-ups.For H2FY26, they’re counting on theenergy label change (Jan 2026)to boost pre-buying. Commercial AC and refrigeration
