Blue Star Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Blue Star Ltd filed with BSE on 12 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Blue Star reported consolidated Q4 FY26 revenue of Rs.4,072 crore, up 1.3%, with EBITDA margin improving to 8% from 7% a year earlier, while full-year FY26 revenue grew 3.6% to Rs.12,402 crore as net profit declined to Rs.527.3 crore from Rs.591.3 crore in FY25. Management described FY26 as a year with multiple headwinds including a weak summer, GST-related disruption, an energy label change, and trade-war related supply chain effects, before demand picked up from mid-April 2026. Segment-wise, Electromechanical Projects and Commercial AC revenue grew 12.8% for the year while Unitary Products revenue declined 5.1%, and management discussed price increases, capacity utilisation, and margin outlook for FY27 during the Q&A.
Numbers mentioned
Revenue from operations: RS.4,072 Crore (Q4 FY26)
p. 4
“revenue from operations for Q4 FY '26 grew 1.3% to RS.4,072 Crore as compared to RS.4,019 Crore in Q4 FY '25”
Nikhil Sohoni, page 4 of the filed PDF · View the filing
EBITDA: RS.326.3 Crore, margin 8% (Q4 FY26)
p. 4
“EBITDA, excluding other income for Q4 FY '26 improved to RS.326.3 Crore, EBITDA margin of 8% as compared to RS.279.4 Crore an EBITDA margin of 7% of the revenue in Q4 of last year”
Nikhil Sohoni, page 4 of the filed PDF · View the filing
Net profit: RS.227.2 Crore (Q4 FY26)
p. 4
“Net profit was at RS.227.2 Crore in Q4 FY26 as compared to RS.194 Crore in Q4 FY25”
Nikhil Sohoni, page 4 of the filed PDF · View the filing
Revenue from operations: RS.12,402 Crore (FY26)
p. 4
“Revenue from operations for FY26 grew 3.6% to RS.12,402 Crore as compared to RS.11,967.6 in FY25”
Nikhil Sohoni, page 4 of the filed PDF · View the filing
EBITDA margin: 7.5% (FY26)
p. 4
“EBITDA, excluding other income for FY26 improved to RS.930.4 Crore, an EBITDA margin of 7.5% of revenue as compared to RS.875.9 Crore and EBITDA margin of 7.3% of revenue in FY25”
Nikhil Sohoni, page 4 of the filed PDF · View the filing
Net profit: RS.527.3 Crore (FY26)
p. 4
“Net profit for FY26, de-grew to RS.527.3 Crore, 4.3% of revenue as compared to RS.591.3”
Nikhil Sohoni, page 4 of the filed PDF · View the filing
Dividend: RS.8.5 per share (FY26)
p. 5
“The Board of Directors of the company have recommended a dividend of RS.8.5 per share”
Nikhil Sohoni, page 5 of the filed PDF · View the filing
Carried forward order book: RS.6,923 Crore (as of March 31, 2026)
p. 5
“Carried forward order book of March 31, 2026, grew by 10.5% to RS.6,923 Crore as compared to RS.6,263 Crore as of March 31, 2025”
Nikhil Sohoni, page 5 of the filed PDF · View the filing
Net cash position: RS.175.5 Crore (as of March 31, 2026)
p. 5
“Net cash position was at RS.175.5 Crore as of March 31, '26 as compared to a net cash position of RS.640.3 Crore as of March 31, 2025”
Nikhil Sohoni, page 5 of the filed PDF · View the filing
Segment 1 (Electromechanical Projects and Commercial AC) revenue: RS.6,762.8 Crore (FY26)
p. 5
“Segment revenue for the year grew 12.8% to RS.6,762.8 Crore as compared to RS.5,998 Crore in FY25”
Nikhil Sohoni, page 5 of the filed PDF · View the filing
Segment 2 (Unitary Products) revenue: RS.5,332.4 Crore (FY26)
p. 6
“Revenue for the year de-grew by 5.1% to RS.5,332.4 Crore in FY26 as compared to RS.5,621.1 Crore in FY25”
Nikhil Sohoni, page 6 of the filed PDF · View the filing
Market share (value terms): 14.25%
p. 14
“we have to march towards our market share goal of 15%, which is currently at around”
B. Thiagarajan, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Segment 1 margin — 7% to 7.5%
stated as an aspiration by B. Thiagarajan
p. 14
“we want to continue to maintain that 7% to 7.5% outlook”
B. Thiagarajan, page 14 of the filed PDF · View the filing
Segment 2 (UCP) margin — 8% to 8.5% · FY27
stated conditionally by B. Thiagarajan
p. 16
“we are still maintaining that 8% to 8.5% is the outlook for the market”
B. Thiagarajan, page 16 of the filed PDF · View the filing
Segment 2 margin in a good summer — 8.5% to 9% · FY27
stated conditionally by B. Thiagarajan
p. 16
“In a good summer here, it should be 8.5% to 9% for your information”
B. Thiagarajan, page 16 of the filed PDF · View the filing
Annual capex — RS.250 Crore to RS.350 Crore
stated firmly by Nikhil Sohoni
p. 15
“the annual capex can be anywhere in the region of around RS.250 Crore to RS.350 Crore”
Nikhil Sohoni, page 15 of the filed PDF · View the filing
Room air conditioner industry size — 40 million to 50 million units · by FY30
stated as an aspiration by B. Thiagarajan
p. 12
“I will not be surprised many things happen and it ends up with 40 million to 50 million units by FY30”
B. Thiagarajan, page 12 of the filed PDF · View the filing
Data center MEP revenue potential — RS.3,000 Crore · within 3 years
stated as an aspiration by B. Thiagarajan
p. 11
“the MEP part of that RS.1,000 Crore has the potential to go to RS.3,000 Crore within 3 years”
B. Thiagarajan, page 11 of the filed PDF · View the filing
RAC capacity expansion decision — one more assembly line · October
stated conditionally by B. Thiagarajan
p. 18
“Then we will be deciding by October to expand one more line and the factory is built in such a manner, the building is available”
B. Thiagarajan, page 18 of the filed PDF · View the filing
Primary sales growth (industry, if summer holds) — 25% to 30% over last year · Q1 FY27
stated conditionally by B. Thiagarajan
p. 21
“a good performance would mean anywhere between 25% to 30% over last year”
B. Thiagarajan, page 21 of the filed PDF · View the filing
Commercial air conditioning growth outlook — 8% to 10% · FY27
stated as an aspiration by B. Thiagarajan
p. 11
“The outlook continues to be around 8% to 10% kind of growth”
B. Thiagarajan, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said advertising spend depends on demand materializing and there is no intent to cut investment, but spend will not increase without demand.
Answered by B. Thiagarajan
Asked by Natasha Jain: Is Blue Star protecting margins on ad spend or will spend rise later, and will that hurt volumes?
p. 8
“There is no intent to stop our investments, which is in the order of around 1.5% into 2% of our products business revenue, that's what is advertising, brand building, field marketing expenses”
B. Thiagarajan, page 8 of the filed PDF · View the filing
Management said about 8% of the required 13% price increase has been realized so far, with the remaining 5% to come through May-June billings.
Answered by B. Thiagarajan
Asked by Ravi Swaminathan: How much price increase has been taken since January and how much more is needed?
p. 9
“For whatever primary had happened, we would have realized up to 8% out of 13% price increase, 5 more percentage of increase will happen as the May, June billings are happening, that is the reality”
B. Thiagarajan, page 9 of the filed PDF · View the filing
Management estimated inventory at 45-60 days and said the net consumer price increase after GST benefit is only about 3%, which is unlikely to significantly hurt demand unless external shocks affect sentiment.
Answered by B. Thiagarajan
Asked by Sonali Salgaonkar: What is the current RAC inventory level and will price hikes cause demand destruction?
p. 14
“around 45 to 60 days of inventory should be there”
B. Thiagarajan, page 14 of the filed PDF · View the filing
Management confirmed margin pressure will continue through the year and reiterated the 8% to 8.5% margin outlook for UCP.
Answered by B. Thiagarajan
Asked by Aditya Bhartia: Will Q1 see margin pressure given only 8% of the required 13% price hike has been taken?
p. 16
“We are also stating that there will be margin pressure throughout the year and unless and until something dramatically changes in Q2 or Q3, we do not know and we are still maintaining that 8% to 8.5% is the outlook for the market”
B. Thiagarajan, page 16 of the filed PDF · View the filing
Management said the projects segment margin is blended across buildings, infra, and data centers, and they are not guiding to margin expansion beyond the 7% to 7.5% range.
Answered by B. Thiagarajan
Asked by Renu Baid: Why aren't project segment margins expected to improve given growth in higher-margin data center business?
p. 18
“Within the projects business, there are data centres, there are factories, there are buildings, there are infra. Now in that particular business, we have been operating between 7% to 7.5%”
B. Thiagarajan, page 18 of the filed PDF · View the filing
Management clarified the provision reversal was recorded within exceptional items and did not flow into segment business results.
Answered by B. Thiagarajan
Asked by Achal Lohade: Did the Q4 UCP margin improvement include the labor code provision reversal?
p. 19
“So that is in the exceptional item. Provision was made in the exceptional item, provision is taken back in exceptional item, so there are no provisions out there”
B. Thiagarajan, page 19 of the filed PDF · View the filing
Management said the order book is around Rs.1,500 crore at any point, translating to roughly Rs.1,000 crore in annual revenue.
Answered by B. Thiagarajan
Asked by Karan Gupta: What is the order book size for the data center MEP segment?
p. 20
“I told you that we estimate the market to be anywhere between 3,000 to 4,000 and our order book will be somewhere around RS.1,500 Crore”
B. Thiagarajan, page 20 of the filed PDF · View the filing
Management said yes, and noted this year's focus will be on margins rather than inventory management given better production discipline.
Answered by B. Thiagarajan
Asked by Manish Raj: If summer progresses well, will Q1 inventory end lower than last year?
p. 21
“this year will be about margins rather than inventory”
B. Thiagarajan, page 21 of the filed PDF · View the filing
Risks flagged
Trade war-related supply chain disruption affecting raw material availability and prices
p. 3
“there were trade war-related hiccups all throughout the year, it still continues, which impacts us in terms of the supply chain itself on numerous raw materials that we get”
B. Thiagarajan, page 3 of the filed PDF · View the filing
Middle East crisis could disrupt supply chain and dampen growth
p. 7
“Further, the ongoing Middle East crisis can lead to a supply chain disruption and also dampen growth”
Nikhil Sohoni, page 7 of the filed PDF · View the filing
Rising input costs and volatile exchange rates creating margin management challenges
p. 7
“With rising input costs and volatile exchange rates, there will be challenges in managing the margins”
Nikhil Sohoni, page 7 of the filed PDF · View the filing
US HVAC market weakness and dependence on outcome of India-US trade deal
p. 5
“The future prospects of the U.S. business are highly dependent on the outcome of the India U.S. trade deal”
Nikhil Sohoni, page 5 of the filed PDF · View the filing
Uncertain regulatory policy framework slowing MedTech Solutions business
p. 6
“The uncertainties around the regulatory policy framework pertaining to MedTech Solutions business are yet to be resolved. And consequently, the business has slowed down”
Nikhil Sohoni, page 6 of the filed PDF · View the filing
Weather uncertainty around summer duration affecting inventory liquidation and sales
p. 19
“The question is weather patterns have completely changed and so it is just impossible”
B. Thiagarajan, page 19 of the filed PDF · View the filing
Shortage of electronics due to helium-related issues adding cost pressure
p. 13
“there will be a huge shortage of electronics because of helium-related issues, so it is unfortunate that we are in thist situation”
B. Thiagarajan, page 13 of the filed PDF · View the filing
Consumer sentiment could weaken if petrol or diesel prices rise, denting demand
p. 15
“I know for sure that the consumer sentiment will dramatically change if, for example, petrol prices are going up or diesel prices are going up”
B. Thiagarajan, page 15 of the filed PDF · View the filing
Industry margins under pressure due to increasing competition and manufacturing capacity investment
p. 12
“the question will be the margin will be under extreme pressure”
B. Thiagarajan, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.