The room air conditioners (ACs) business recorded modest growth, primarily driven by channel partners building inventory
Delivering moderate revenue growth despite market challenges, Blue Star’s revenue from operations increased by 4.2 per cent to Rs 2,925.31 crore for the quarter ended 31 December 2025, as compared to Rs 2,807.36 crore during the same period in the previous year.
The operating profit (PBIDTA excluding other income) for the quarter increased by 5.4 per cent to Rs 220.72 crore (7.5 per cent of revenue) as compared to Rs 209.38 crore (7.5 per cent of revenue) in Q3FY25. Other Income, including income from treasury investments for the quarter was Rs 11.88 crore as compared to Rs 8.73 crore in Q3FY25.
The room air conditioners (ACs) business recorded modest growth, primarily driven by channel partners building inventory ahead of the mandatory energy-label transition effective 1 January 2026. Tax expense for the quarter was Rs 27.07 crore as compared to Rs 46.53 crore in Q3FY25.
On 21 November 2025, the Centre notified four labour codes, consolidating 29 existing labour laws, followed by the issuance of draft central rules and FAQs by the Ministry of Labour and Employment to assess the financial impact. As required by the ICAI guidance note, the company recognised the incremental impact of gratuity and leave encashment amounting to Rs 56.35 crore on an estimated basis, it said in a regulatory filing.
The provision will be reviewed again in March 2026, by which time more clarity is expected on the rules, definition of wages and coverage of employees. This non-recurring item is shown as an exceptional item in the consolidated statement of profit and loss for the quarter ended 31 December 2025. Consequent to the exceptional item, net profit for the quarter was Rs 80.55 crore as compared to Rs 132.46 crore in Q3FY25.
Vir S. Advani, Chairman and Managing Director, Blue Star, stated, “The first three quarters of the current fiscal year were challenging, but the signs of market revival are encouraging. The company expects Q4FY26 to be a strong quarter for room ACs, commercial air conditioning and commercial refrigeration businesses. In anticipation of robust growth in FY27, the company is continuing to expand distribution and invest in R&D, manufacturing, digitalisation and the brand, while introducing cost optimisation and productivity improvement measures.”
Earnings per share (face value of Rs 2.00) for Q3FY26 stood at Rs 3.92 as compared to Rs 6.44 for Q3FY25. Carried-forward order book as of 31 December 2025, stood at Rs 6,898.74 crore, as compared to Rs 6,810.00 crore as of 31 December 2024.
Revenue of segment one, comprising electro-mechanical projects, commercial air conditioning systems, service and international business, grew by 8.6 per cent to Rs 1,696.21 crore in Q3FY26, as compared to Rs 1,562.41 crore in Q3FY25. Revenue for the unitary products segment, comprising room air conditioners and commercial refrigeration, was Rs 1,154.22 crore in Q3FY26, as compared to Rs 1,164.36 crore in Q3FY25.
The professional electronics and industrial systems segment revenue declined by 7.1 per cent to Rs 74.88 crore in Q3FY26, as compared to Rs 80.59 crore in Q3FY25.
