Blue Star said an extended monsoon and temporary disruptions in sales channels following the GST rate rationalisation for compressor-based cooling products impacted its performance. The GST Council had reduced the tax rate on air conditioners and dishwashers from 28% to 18%, effective September 22, 2025.
Revenue growth remained modest amidst a few headwinds, the company said, adding that its Room AC segment witnessed a “seasonal slowdown” due to cooler weather and deferred demand after the GST rate cut announcement.
The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment, however, posted strong growth, with revenue up 16.5% to ₹1,664.21 crore. Blue Star said the segment saw healthy enquiry inflows from buildings, data centres, and factories, though order finalisations were muted.Revenue from unitary products, which includes the consumer-facing room AC business, declined 9.5% to ₹693.81 crore, while revenue from professional electronics and industrial systems fell 20.1% to ₹64.35 crore.
Total expenses increased 6.3% year-on-year to ₹2,299.22 crore, while total income rose 6% to ₹2,432.38 crore.
In the first half of FY26, Blue Star’s consolidated revenue grew 5.1% to ₹5,404.62 crore compared with ₹5,141.33 crore in the same period last year.
Chairman and Managing Director Vir S Advani said that while near-term demand in some segments was affected, Blue Star’s diversified portfolio and execution strength position it well for sustained growth. He added that the GST rate cut is expected to spur consumer demand for room ACs in the coming months.
He noted that while order inflows in the projects business may remain slow, commercial air conditioning demand is poised for revival, and the company will continue to focus on cost management and working capital optimisation in the second half of the fiscal year.
First Published: Nov 5, 2025 9:17 PM IS
