New Delhi, Oct 29 (PTI) Air-condition and commercial refrigeration system maker Blue Star Ltd on Thursday reported a 25.44 per cent year-on-year increase in its consolidated net profit to Rs 123.91 crore for the September quarter, aided by exceptional gains and higher demand due to an extended summer season.
The company had posted a net profit of Rs 98.78 crore in the July-September period a year ago, according to a regulatory filing.
“During the quarter, an exceptional gain of Rs 23.02 crores was recognised on the sale of the MedTech business,” the company said in its earnings statement.
Its revenue from operations increased 21 per cent to Rs 2,930.95 crore in the September quarter, as against Rs 2,422.37 crore in the year-ago period.
“In Q2 FY27,
an extended summer season drove robust demand for Room ACs, contributing to strong revenue growth. However, profitability remained under pressure across businesses due to continued escalation in material costs and the limited ability to fully pass on these increases,” it said.
Blue Star’s total expenses stood at Rs 2,946.74 crore, up 22.35 per cent YoY, in Q2 FY27.
The company’s revenue from the electro-mechanical projects and commercial air conditioning systems segment was up 16.33 per cent at Rs 1,935.99 crore.
in Q2/FY27.
“During the quarter, in the Electro-Mechanical Projects business, order inflows were primarily driven by data centres, while enquiries from the factory segment also remained strong. However, billing growth was subdued due to project execution delays. The Company expects a significant increase in order inflows in the coming months,” it said.
Moreover, commercial Air Conditioning business recorded strong revenue growth, driven by robust demand across healthcare, education and industrial segments.
Similarly, its revenue from unitary products, which houses its consumer-facing room AC business, was up 29.38 per cent to Rs 897.66 crore in the second quarter of FY27.
“A delayed monsoon and extended summer supported strong demand for Room ACs. Despite periodic price increases, only part of the material cost escalation could be passed on, keeping margins under pressure,” it said.
The company is in the process of rationalising its product portfolio through differentiated, cost-optimised models to improve margins. Moreover, margins remain under pressure due to limited ability to pass through material cost increases.
Revenue of the Professional Electronics and Industrial Systems Segment was up 51.2 pc to Rs 97.3 crore.
Total consolidated income was up 21.14 per cent at Rs 2,946.74 crore in the September quarter.
In the first half (H1) of FY27, total consolidated income of Blue Star stood at Rs 6,308.87 crore, up 16.73 per cent.
On the outlook, Chairman and Managing Director Vir S Advani said he sees strong demand for Room ACs through the festive season, while a healthy pipeline of Data Centre MEP projects is expected to translate into significant order inflows in the coming months.
“We are also witnessing a revival in demand across Commercial Air Conditioning and Commercial Refrigeration businesses, providing further impetus to our growth prospects,” he said, adding, “We remain confident of sustaining our revenue growth momentum in H2FY27, with a clear focus on strengthening profitability. Our priorities will be to drive calibrated price revisions, accelerate product cost optimisation and improve operational efficiencies to enhance margins.”
Shares of Blue Star settled at Rs 1,670 apiece, up 4.51 per cent, on the BSE. PTI KRH SHM
/images/ppid_59c68470-image-179327503044942896.webp)
