Blue Star’s September-quarter revenue grew 21 per cent to Rs 2,931 crore, while Ebitda margin contracted to 6.9 per cent from 7.6 per cent a year earlier. The company is considering further price hikes amid rising raw material and logistics costs
Blue Star consolidated net profit rose 25.2 per cent year-on-year to Rs 123.9 crore in the September quarter of FY27, while revenue grew 21 per cent to Rs 2,931 crore. However, earnings before interest, taxes, depreciation and amortisation (Ebitda) increased at a slower pace of 10.6 per cent to Rs 203 crore, pulling the Ebitda margin down to 6.9 per cent from 7.6 per cent a year earlier, according to an exchange filing on Thursday.
Revenue from operations stood at Rs 2,931 crore, compared with Rs 2,422 crore in the corresponding quarter last year. The gap between revenue and Ebitda growth, alongside the contraction in margins, highlights the pressure on operating profitability even as the company recorded higher sales and net profit.
Vir S Advani, Chairman and Managing Director of Blue Star, said demand for room air conditioners remained strong through the festive season. He added that a healthy pipeline of mechanical, electrical and plumbing (MEP) projects for data centres was expected to generate significant order inflows in the coming months, while demand was also reviving across commercial air conditioning and commercial refrigeration.
“While a deficient monsoon leading to potential impact on agricultural incomes and higher interest rates could impact near-term demand, the conclusion of the US trade deal and resolution of West Asia crisis could provide growth tailwinds,” Advani said.
The company expects to sustain its revenue growth momentum in the second half of FY27, with a greater focus on profitability. Its priorities include calibrated price revisions, product cost optimisation and improved operational efficiencies to strengthen margins, Advani said.
Blue Star May Raise Prices Further
Blue Star may consider further product price increases as raw material and logistics costs continue to put pressure on margins. According to a media report, Managing Director B Thiagarajan said that the company may need to raise prices in response to the cost pressures.
The company also faces near-term demand risks from a deficient monsoon and higher interest rates, which could affect agricultural incomes and consumer spending. Advani said a conclusion to the US trade deal and a resolution of the West Asia crisis could provide additional support to growth.
