Blue Star Reports 13% Revenue Growth in Q1FY27 as Margins Face Pressure
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India: Blue Star Limited reported 13% year-on-year revenue growth to USD 354.5 million (INR 3,378 crore) in Q1FY27, while EBITDA declined 13% to USD 18.4 million (INR 175 crore), with margins contracting to 5.2% from 6.7%, and profit before tax falling 24% to USD 13.2 million (INR 126 crore). Margin pressure was driven by unprecedented copper price inflation, rupee depreciation and competitive intensity, with the company able to pass through only around 5% of a planned 13% price increase. The electro-mechanical projects and commercial air conditioning segment grew 15.1% to USD 170.5 million (INR 1,625 crore), while unitary products rose 12.7% to USD 177.2 million (INR 1,689 crore), but EBIT margins fell to 2.9% from 5.8%; professional equipment and industrial solutions revenue declined 9.7% to USD 6.7 million (INR 64 crore), although EBIT margins improved to 15.1%. The order book increased 13.5% to USD 814.8 million (INR 7,764 crore), while net cash strengthened to USD 94.5 million (INR 900 crore), and management expects gradual margin recovery through FY2027, targeting more than 6.5% EBIT margin in unitary products.
Source: Investing.com
