Blue Star shares fall over 6% after management cuts FY26 revenue growth guidance

Shares of Blue Star fell over 6% on Thursday, November 6, after the management cut its full year revenue growth guidance to flat from the earlier projection of 5%.

The management during its earnings call highlighted that the festive season has not gone well despite the reduction in the GST rates for the consumer durables like Room Air-Conditioners.

Blue Star added that they currently have an inventory of 65 days, which needs to be cleared before the change of energy norms from January 2026.

Tariff related uncertainties continue to persist, according to Blue Star, whose management believes that while the second half of the year will surely be better than the first, there is doubt over whether that performance will be able to cover the loss seen in the first half.

Blue Star expects the Room AC industry to decline by 15% from last year, but expects to continuing to grow faster than the industry, as well as maintain margins at current levels.

The management expects EBITDA margin of the EMP segment to range between 7% to 7.5% for the rest of the year. The management also expects similar margins for the UCP segment.

Shares of Blue Star have now slumped to the lows of the day, currently trading 5.5% lower at ₹1,814.4. The stock is down 10% from the highs of the day.

(Concall inputs by Upasana Bhatt)