News ArticleBlue Star posts 21% revenue growth to ₹2,930.95 crore in Q2 FY27 with net profit rising 25.4%
Extended summer boosts Room AC sales while margins face pressure from rising material costs; order book grows to ₹7,229.22 crore
Blue Star Limited reported a 21.0% revenue increase to ₹2,930.95 crore for Q2 FY27 driven by extended summer demand. Net profit rose 25.4% to ₹123.91 crore despite margin pressures from material cost escalation. The company saw segmental growth in Electro-Mechanical Projects and Unitary Products, with carried-forward orders reaching ₹7,229.22 crore by September 30, 2026.
Blue Star Limited
Investor Presentation
Blue Star Limited reported a 21.0% increase in consolidated revenue to ₹2,930.95 crore for the quarter ended September 30, 2026, supported by strong Room AC demand amid an extended summer season. Despite higher material costs impacting profit margins, the company’s net profit grew by 25.4% to ₹123.91 crore.
The company’s EBITDA (excluding other income) improved to ₹202.58 crore, representing 6.9% of revenue, though margin percentages declined from 7.6% in the prior year quarter due to escalating material costs. Profit before tax remained nearly flat at ₹133.61 crore compared to ₹133.16 crore in Q2 FY26.
The carried-forward order book rose slightly to ₹7,229.22 crore as of September 30, 2026, versus ₹7,120.44 crore a year earlier, with the Electro-Mechanical Projects segment’s order book growing 6.2% to ₹5,141.78 crore. Capital employed decreased to ₹3,200.36 crore, and net cash position improved significantly to ₹289.43 crore from net borrowings of ₹417.06 crore a year ago.
Segment I (Electro-Mechanical Projects & Commercial Air Conditioning) revenue increased 16.3% to ₹1,935.99 crore, while margins fell to 6.9% from 8.8%. The unit launched new generation VRF and ducted systems, maintaining leadership in the commercial AC market, and continued international heat pump sales despite supply chain challenges.
Segment II (Unitary Products) revenue grew 29.4% to ₹897.66 crore, aided by strong Room AC sales due to the delayed monsoon and extended summer. Margins declined to 2.3% from 6.2% as cost escalations were only partially passed to customers. The company is optimizing its product portfolio to improve margins.
Segment III (Professional Electronics and Industrial Systems) posted a 51.2% revenue increase to ₹97.30 crore. The sale of the MedTech business for ₹35.65 crore enhanced profitability by releasing warranty provisions. Industrial and data security solutions continued growth amid robust demand from BFSI and enterprises.
Highlights
- Q2 FY27 revenue up 21.0% to ₹2,930.95 crore from ₹2,422.37 crore in Q2 FY26.
- Net profit increased 25.4% to ₹123.91 crore in Q2 FY27 compared to ₹98.78 crore a year ago.
- EBITDA margin decreased to 6.9% due to material cost inflation pressures.
- Carried-forward order book marginally rose to ₹7,229.22 crore as of September 30, 2026.
- Electro-Mechanical Projects segment order book up 6.2% to ₹5,141.78 crore.
- Net cash position improved from ₹(417.06) crore borrowings to positive ₹289.43 crore by Sept 2026.
Key Data Snapshot
Financial performance
- Q2 FY27 total revenue increased 21.0% to ₹2,930.95 crore aided by Room AC demand during an extended summer season.
- EBITDA margin declined to 6.9% from 7.6% in Q2 FY26 due to escalating material costs not fully passed on to customers.
- Net profit grew 25.4% to ₹123.91 crore despite margin pressure, supported by cost optimization initiatives.
- PBT remained steady at ₹133.61 crore with stable tax expense of ₹33.39 crore.
Operational performance
- Electro-Mechanical Projects & Commercial AC segment revenue grew 16.3% to ₹1,935.99 crore, with segment margin contracting to 6.9%.
- Strong Room AC sales led to a 29.4% revenue increase in Unitary Products segment to ₹897.66 crore, but margins fell to 2.3%.
- Professional Electronics and Industrial Systems segment revenue rose 51.2% to ₹97.30 crore with improved profitability following sale of MedTech business.
- New generation VRF and ducted systems were launched, maintaining leadership in commercial air conditioning.
Order and execution details
- Carried-forward order book marginally increased to ₹7,229.22 crore as of September 30, 2026, from ₹7,120.44 crore a year earlier.
- Electro-Mechanical Projects order book expanded 6.2% to ₹5,141.78 crore, driven by data center orders.
- Project execution faced some delays causing sluggish billing growth in Electro-Mechanical Projects during the quarter.
Business impact
- Extended summer enhances demand for Room Air Conditioners, supporting revenue growth in Q2 FY27.
- Margin pressure from material cost inflation continues as only partial price increases were possible.
- Cost optimization programs have begun showing effects to mitigate margin compression.
- International heat pump business in the US proceeds amid supply chain challenges and tariff uncertainties.
Risks and conditions
- Potential impact on demand from monsoon shortfall, farm income decline, and interest rate hikes.
- Business outlook dependent on resolution of US trade deal issues and geopolitical stability in West Asia.
Highlights
- Q2 FY27 revenue up 21.0% to ₹2,930.95 crore from ₹2,422.37 crore in Q2 FY26.
- Net profit increased 25.4% to ₹123.91 crore in Q2 FY27 compared to ₹98.78 crore a year ago.
- EBITDA margin decreased to 6.9% due to material cost inflation pressures.
- Carried-forward order book marginally rose to ₹7,229.22 crore as of September 30, 2026.
- Electro-Mechanical Projects segment order book up 6.2% to ₹5,141.78 crore.
- Net cash position improved from ₹(417.06) crore borrowings to positive ₹289.43 crore by Sept 2026.
Disclosures
- Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
More News on Investor Presentation
View allLatest corporate announcements and market updates in Investor Presentation.
Piramal Finance Limited Reports 67% Profit Growth and 24% AUM Rise in Q2 FY27
Piramal Finance Limited announced a 67% year-on-year increase in profit after tax to ₹545 crore for the second quarter of fiscal year 2027, supported by a 24% rise in assets under management (AUM) to ₹1,13,112 crore. The retail segment showed strong growth with AUM up 30% to ₹97,462 crore, while the net interest margin improved to 6.5%. The company also raised ₹3,850 crore through a qualified institutional placement and preferential allotment.
Read Full Story
Varun Beverages Posts 33.2% Revenue Increase in Q3 CY2026, Expands African Presence with New Brands and Distribution Deals
Varun Beverages Limited reported a revenue rise of 33.2% to Rs. 66,075.6 million for the quarter ended September 30, 2026, on the back of a 28.7% increase in consolidated sales volumes. The company expanded its footprint in Africa through mergers, new product launches, and distribution agreements while declaring an interim dividend.
Read Full Story
MTAR Technologies Secures Rs.504 Crore Order for Kaiga 5&6 Nuclear Projects, Expands in Aerospace and Clean Energy
MTAR Technologies Limited announced a significant Rs.504 crore order inflow for Kaiga 5&6 civil nuclear power projects, underscoring strong order visibility in the sector, alongside new product developments and capacity enhancements in aerospace, defence, and clean energy sectors.
Read Full Story
