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1 — At a Glance
Blue Star sells cooling. In the three months to June 2026, India declined to get hot on schedule.
Revenue for the quarter came in at ₹3,378 crore, against ₹2,982 crore a year earlier. That is a rise of 13.3%. Operating profit moved the other way, at ₹175 crore against ₹199 crore. The operating margin, the share of sales left after running costs, was 5% against 7%. Net profit was ₹102.5 crore against ₹121 crore. Profit before tax and exceptional items, meaning one-off gains and costs, fell 23.7% to ₹125.6 crore, per the company’s own investor update.
Management called the quarter “challenging” on the August call. It listed the ingredients: “unprecedented escalation in commodity prices, depreciation of rupee, delayed onset of summer season and a huge inventory pile up of room ACs in the trade.” The Unitary Products segment covers room ACs, deep freezers and water coolers. Its revenue grew 12.8% to ₹1,689 crore. Its margin on profit before interest and tax went from 5.8% to 2.9%. Management sought to pass on about 13% of cost inflation and passed on 5%.
The projects side of the house grew on both revenue and orders. Electro-Mechanical Projects revenue rose 15.1% to ₹1,625 crore. Order inflow rose 24% to ₹2,435 crore. Roughly ₹1,500 crore of that came from data centres alone. The carry-forward order book, meaning work won but not yet carried out, stood at ₹7,764 crore. That is up 13.5% on a year earlier.
2 — Introduction
Blue Star was set up in 1943 by the late Mohan T Advani. It listed on the Bombay Stock Exchange in 1969. The company makes air purifiers, air coolers, water purifiers and cold storage, alongside speciality products. It also takes on turnkey MEP work, meaning mechanical, electrical, plumbing and fire-fighting systems handed over finished. Per its filings, it is the country’s largest after-sales service provider for air conditioning and commercial refrigeration. It maintains roughly two million tonnes of installed equipment.
Seven manufacturing plants sit across Dadra, Wada, Ahmedabad and Sri City, plus two facilities in Himachal Pradesh. Sri City began commercial production in 2023 and carries air conditioner capacity of 10.50 lakh units. CARE Ratings, a credit-rating agency, notes that Sri City now makes heat exchangers and sheet metal parts in-house. CARE also notes that over 40% of room air conditioner sales are concentrated in South India. Distribution runs through more than 4,000 channel partners. Amazon, Flipkart, direct-seller and dropship models carry the rest. Virat Kohli has been the brand ambassador for room ACs and air coolers since 2019.
The recent calendar has been busy. In January 2026 the company reported unauthorised access to product installation data, with a cybersecurity investigation ongoing. Sam Balsara retired from the board on 31 January. M S Unnikrishnan joined as an independent director on 29 January. Executive director Venkata Rao Ponnada resigned with effect from 15 January and was relieved on 28 February. Independent director Arvind Singhal resigned with effect from 30 May 2026. A postal ballot on 31 March 2026 re-appointed B Thiagarajan as managing director through 24 May 2027. The same ballot confirmed Mohit Sud as executive director from 1 April 2026.
In July 2026 an arbitrator at the ICC, a body that settles commercial disputes outside court, dismissed WJT’s ₹461.74 crore claim against the company. Interest and costs are pending. CARE reaffirmed its long-term rating at AA+ with a stable outlook on 7 July 2026. On 14 August 2026, Blue Star E&E signed a business transfer agreement to sell its MedTech division to Cyrix for up to ₹40 crore.
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3 — Business Model: WTF Do They Even Do?
Three segments, three different temperaments, one balance sheet.
Electro-Mechanical Projects and Commercial Air Conditioning was 54.5% of revenue in the year to March 2026. The work covers central air-conditioning projects, electrical contracting, packaged and ducted systems and VRF units. A VRF system varies the flow of refrigerant, so one outdoor unit can serve many rooms at once. It also sells scroll, screw, centrifugal and data-centre chillers, the machines that cool water for a building. Turnkey MEP and firefighting work goes into buildings, factories, data centres and metro rail. Substations are on that list too. The work is a promise that a building will be cool years from now, honoured years later. Clients include Nippon, Ola Electric Mobility, JCB India and Salcomp. LuLu Group, K Raheja Corp, Embassy Group and Wells Fargo are also named. So are Oberoi Realty and Yashoda Hospitals.
Unitary Products was 43.0% of revenue in the same year. It covers fixed-speed splits, inverter ACs, window ACs and deep freezers. It also covers storage water coolers, bottled water dispensers, visi coolers and cold rooms. Supermarket, kitchen and healthcare refrigeration sit in the same segment. Room air conditioner share was about 14.25% by value in the three months to March 2026. Share by volume was about 11.25%, so the value share is the higher of the two. The company sizes the Indian air-conditioning market at ₹35,500 crore for the year to March 2026. Room air conditioners are ₹30,000 crore of that. On the August call, management said the fix is “the lowest cost entry-level products… 90% has to be that.”
Professional Electronics and Industrial Systems was 2.5% of revenue in the year
