Blue Star Expects Continued Margin Pressure from Raw Material Costs
India: Blue Star expects margin pressure to continue during the July-September 2026 quarter as higher raw material costs offset the impact of price increases. Managing Director B Thiagarajan said the company may see some improvement towards the end of the quarter as it implements product redesign and material substitution measures.
“The summer season was good, though it was short, and we couldn't deliver in terms of margins. It was a very poor margin of around 3% in our unitary cooling product segment, attributable to the raw material price increase as well as the exchange rate. So, we thought that Q2 it should become better. It is not the case. It continues to be a painful quarter,” he said. The company has increased prices twice but has not fully passed higher costs on to customers. Thiagarajan expects some improvement in room air-conditioning margins during the third quarter, while the company is targeting a margin of around 6.5% by the fourth quarter. Demand has remained above expectations despite the pressure on margins.
Source: CNBC TV18
