Mumbai, Aug 6 Air conditioner (AC) manufacturer Blue Star on Wednesday reported a sharp drop in its earnings for the first quarter (Q1) of FY26, with net profit falling 37.7 per cent quarter-on-quarter (QoQ) to Rs 120.82 crore from Rs 194 crore in the previous quarter (Q4 FY25).
Revenue from operations also slipped 25.8 per cent on sequential basis to Rs 2,982.25 crore, down from Rs 4,018.96 crore in Q4 FY25, according to its stock exchange filing.
The company attributed the decline to unseasonal rains across the country, which weakened summer demand and hit its Room Air Conditioners business.
“The year began on a softer note owing to unseasonal rains across the country resulting in a weak summer, adversely impacting the Room Air Conditioners business of the Company,” the firm said in its regulatory filing.
However, its B2B operations continued to perform well, providing some cushion to the overall results.
Other income fell 33 per cent to Rs 16.07 crore from Rs 23.99 crore in the previous quarter, while total income dropped 25.8 per cent to Rs 2,998.32 crore from Rs 4,042.95 crore.
Earnings per share (not annualised) for Q1 FY26 stood at Rs 5.88, compared to Rs 8.21 in the same period previous year (Q1 FY25).
Despite the weak start, Blue Star’s order book remains healthy. As of June 30, the carried forward order book stood at Rs 6,843.04 crore, up 12.5 per cent from Rs 6,084.69 crore a year earlier.
Chairman and Managing Director Vir S. Advani said the company expects demand to pick up during the upcoming festive season.
He added that Blue Star’s diversified B2B portfolio, which includes electro-mechanical projects, commercial air conditioning, and commercial refrigeration, should help offset some of the shortfall in the rest of the year.
The company plans to continue investing in manufacturing, R&D, and digitalisation, while focusing on sustainable growth.
Blue Star, an Indian player in the HVAC&R industry, offers a wide range of products, including air conditioners, water purifiers, and commercial refrigeration solutions, along with mechanical, electrical, and plumbing services for large projects.
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