Blue Star Faces Profit Dip Amid Market Challenges

Blue Star Ltd reported a 39.2% decline in profits for Q3 FY26, attributing the drop to flat growth in the room AC sector. Revenue increased by 4.2% despite market difficulties. The company expects a strong Q4, focusing on expansion and cost optimisation.

Blue Star Ltd, a leading air-conditioner and refrigerator manufacturer, reported a significant 39.2% decline in its consolidated profit for the December quarter of fiscal year 2026. The drop to Rs 80.55 crore is attributed to flat growth in its room AC business, according to the company's regulatory filing.

Revenue for the quarter saw a modest increase of 4.2% reaching Rs 2,925.31 crore, compared to Rs 2,807.36 crore in the previous year. Notably, the electro-mechanical projects and commercial air-conditioning system segment witnessed an 8.56% rise, driven by healthy inquiries from buildings, data centres, and factories.

Despite the challenges faced, Blue Star anticipates a strong Q4FY26 with robust growth in room ACs and commercial refrigeration segments. The company is investing in distribution expansion and digitalisation while implementing cost optimisation measures in anticipation of a market revival.

(With inputs from agencies.)