Blue Star Q2 Profit up 2.8 % at ₹ 98.78 Cr; Revenue Rises 9 % to 2,422 Cr

Air-conditioner and commercial refrigeration system maker Blue Star Ltd on Wednesday reported a 2.83 % rise in its consolidated net profit at ₹ 98.78 crore for the September quarter.

The company said that during the quarter, it faced headwinds like the extended monsoon period and disruption in sales channels due to the rationalisation in the GST slab for compressor-based cooling products.

The company had posted a net profit of ₹ 96.06 crore in the July-September quarter a year ago, according to a regulatory filing from Blue Star Ltd.

Its revenue from operations increased by 9.3 % to ₹ 2,422.37 crore in the September quarter of FY26. It was ₹ 2,215.96 crore in the year-ago period.

"During the quarter, the company reported modest revenue growth amidst a few headwinds. The Room ACs segment continued to experience a seasonal slowdown, influenced by an extended monsoon and lower temperatures impacting secondary sales and channel offtake," said Blue Star in its earnings statement.

Further, the demand for room ACs and commercial air conditioning was deferred due to the GST rate reduction, announced on August 15, 2025, and came into effect on September 22, 2025.

The total expenses of the homegrown cooling products maker increased 6.3 % to ₹ 2,299.22 crore in the September quarter.

Blue Star's revenue from the electro-mechanical projects and commercial air conditioning systems segment jumped 16.5 % to ₹ 1,664.21 crore.

"During the quarter, the Electro-Mechanical Projects business witnessed good enquiry inflow from buildings, data centres and factories, but order finalisations were muted. Owing to a healthy order book and faster project execution, billing growth during this quarter was strong," it said.

The Commercial Air Conditioning business grew in line with market trends, with billing momentum moderating between mid-August and late September due to GST reforms, it added.

The GST Council had, on September 4, 2025, decided to reduce duty on air conditioners and dishwashers from 28 % to 18 %. The new structure of goods and services tax (GST) came into effect on September 22.

However, its revenue from unitary products, which houses its consumer-facing room AC business, fell 9.54 % to ₹ 693.81 crore in the September quarter. It was ₹ 767 crore in the corresponding quarter a year ago.

"Driven by unfavourable weather conditions and the mid-quarter GST rate rationalisation announcement, this segment continued to experience de-growth in Q2FY26 as well. The Commercial Refrigeration business experienced a modest quarter owing to muted seasonal demand and an extended monsoon," Blue Star said.

Similarly, revenue of the professional electronics and industrial systems segment declined 20.1 % to ₹ 64.35 crore in Q2 FY26 compared to ₹ 80.54 crore in Q2 FY25.

In the September quarter, Blue Star's total income rose 6 % to ₹ 2,432.38 crore.

In the first half (H1) of FY26, Blue Star's consolidated revenue from operations grew 5.12 % to ₹ 5,404.62 crore against ₹ 5,141.33 crore in the year-ago quarter.

Over the outlook, its Chairman & Managing Director Vir S Advani said that while demand in some businesses was temporarily impacted, the company’s diversified portfolio and strong execution capabilities continue to reinforce its long-term growth trajectory.

"As far as the Room AC business is concerned, the benefit of GST rate rationalisation is likely to accelerate consumer demand and drive long-term market expansion. Also, with the energy label change scheduled for implementation on January 1, 2026, we expect a rise in demand during the Christmas and New Year period," he said.

While the electro-mechanical projects business may see slower order inflows, the commercial air conditioning business is poised for a revival in demand, Advani said.

"We remain focused on both prudent cost management as well as optimising the working capital levels to enhance our performance in the second half of this fiscal year," he said.