Highlights

• Quarterly Profit Improves: Q4FY26 net profit rises to ₹227.18 crore from ₹194 crore last year.
• Revenue Growth Continues: FY26 consolidated revenue increases 3.6% to ₹12,401.99 crore.
• Dividend Recommendation: Board recommends final dividend of ₹8.5 per equity share for FY26.

Blue Star Limited (NSE:BLUESTARCO) reported consolidated revenue from operations of ₹4,072.06 crore for Q4FY26, compared to ₹4,018.96 crore in Q4FY25, reflecting growth of 1.3%. EBITDA excluding other income improved to ₹326.25 crore from ₹279.40 crore in the corresponding quarter last year. EBITDA margin improved to 8.0% from 7.0%.

Profit before tax before exceptional items increased to ₹282.57 crore in Q4FY26 from ₹248.82 crore in Q4FY25. Net profit for the quarter stood at ₹227.18 crore compared to ₹194 crore in the same period last year. Tax expense for the quarter increased to ₹72.91 crore from ₹54.82 crore.

Source: company filing

The company also revised the provision related to gratuity and leave encashment liabilities linked to implementation of new labour codes. During the quarter, ₹17.52 crore provision was reversed after reassessment of liabilities.

FY26 Financial Overview

For FY26, consolidated revenue from operations rose 3.6% to ₹12,401.99 crore from ₹11,967.65 crore in FY25. EBITDA excluding other income improved to ₹930.41 crore compared to ₹875.92 crore last year. EBITDA margin improved slightly to 7.5% from 7.3%.

However, profit before tax before exceptional items declined 3.9% to ₹741.94 crore from ₹772.42 crore in FY25. Net profit for FY26 declined to ₹527.33 crore from ₹591.28 crore in the previous financial year. Net profit margin also declined to 4.3% from 4.9%.

The board recommended a dividend of ₹8.5 per equity share for FY26, lower than ₹9 per share declared in FY25.

Business Segment Performance

The Electro-Mechanical Projects and Commercial Air Conditioning segment reported revenue growth of 12.8% during FY26. The carried-forward order book increased 10.5% to ₹6,923 crore as of 31 March 2026. The company said demand remained healthy from manufacturing and data center sectors.

The Room Air Conditioner business saw demand recovery during March 2026 as dealer stocking increased ahead of summer season. The company stated that it gained market share marginally during FY26 despite difficult market conditions.

In the Professional Electronics and Industrial Systems segment, Industrial Solutions business continued to benefit from demand in automotive and steel industries, while Med-Tech Solutions business remained affected by regulatory uncertainty.

Share Performance

Blue Star Limited traded around ₹1,712 during the latest trading session, down about 2.09%. The stock opened at ₹1,728 and touched an intraday high of ₹1,736.80. The day’s low stood at ₹1,691.

Source: TradingView

Risks

Rising input costs may affect profitability and operating margins.
Volatile foreign exchange rates may increase imported component costs.
Middle East geopolitical tensions may disrupt supply chains and logistics.
Weak demand in some sectors may impact order inflow and revenue growth.

Outlook

The company stated that room air conditioner sales gained momentum from the second week of April 2026 with summer demand improving. Management expects continued demand from manufacturing and data center sectors in FY27. However, it also highlighted challenges related to input costs, exchange rate volatility and geopolitical uncertainty.

Summary

Blue Star Limited (NSE:BLUESTARCO) reported Q4FY26 net profit growth with improved EBITDA margins, while FY26 annual profit declined compared to last year. Revenue increased across the year and the board recommended a final dividend of ₹8.5 per share. The company highlighted better room air conditioner demand and healthy order book growth, while cautioning about rising costs and geopolitical uncertainties.

FAQs

Q: What dividend did Blue Star recommend for FY26?
A: Blue Star recommended a final dividend of ₹8.5 per equity share for the financial year 2025-26.

Q: How much was Blue Star’s FY26 consolidated revenue?
A: The company reported consolidated revenue from operations of ₹12,401.99 crore during FY26.

Q: What factors could affect Blue Star’s business performance going forward?
A: Input cost inflation, exchange rate volatility and geopolitical disruptions may impact profitability and supply chain operations.