Blue Star Q2 Net Profit Rises 2.83% Amid Seasonal and Regulatory Headwinds

Air Conditioner

INDIA: Air-conditioner and commercial refrigeration systems manufacturer Blue Star Ltd reported a 2.83% increase in its consolidated net profit for the September quarter of FY26. Revenue from operations rose by 9.3% in the year-ago period. Despite this growth, the company faced challenges during the quarter, including an extended monsoon period and disruptions in sales channels resulting from the rationalization of the GST slab for compressor-based cooling products.

In its earnings statement, Blue Star noted: “During the quarter, the company reported modest revenue growth amidst a few headwinds. The Room ACs segment continued to experience a seasonal slowdown, influenced by an extended monsoon and lower temperatures impacting secondary sales and channel offtake”

The implementation of the GST rate reduction, announced on August 15, 2025, and effective from September 22, 2025, also led to a deferral in demand for room ACs and commercial air conditioning products.

Total expenses for the homegrown cooling solutions maker increased by 6.3% in the September quarter. The Commercial Air Conditioning business grew in line with market trends, although billing momentum slowed between mid-August and late September due to the GST reforms. Meanwhile, revenue from unitary products, which includes consumer-facing room ACs, declined by 9.54% compared with the corresponding quarter of FY25.

Source: Blue Star