Blue Star Limited Q2 revenue rises 21%, profit gains 25%

Blue Star Limited reported consolidated revenue from operations of ₹2,930.95 crore for Q2 FY27, up 21.0% year-on-year, while net profit rose 25.4% to ₹123.91 crore. The result showed broad-based revenue growth, although margins in its projects and unitary-products businesses were affected by material-cost escalation and project execution delays.

What did Blue Star report for Q2 FY27?

Blue Star reported revenue from operations of ₹2,930.95 crore in the quarter ended September 30, 2026, compared with ₹2,422.37 crore in Q2 FY26. Operating profit, described as EBITDA excluding other income, increased 10.5% year-on-year to ₹202.58 crore.

Profit before tax declined 1.6% to ₹134.28 crore, while net profit increased to ₹123.91 crore from the corresponding prior-year quarter. Earnings per share rose to ₹6.03 from ₹4.80. The company disclosed the Q2 and H1 FY27 results and investor presentation on October 30, following its earlier notice of an investor conference call covering the quarter and half year.

The reported profit included a ₹23 crore gain related to the MedTech exit, according to the earnings-call summary. Separately, the company announcement stated that the MedTech business was sold for ₹35.65 crore. These figures were disclosed alongside the quarterly financial results.

Which Blue Star businesses drove quarterly revenue growth?

Blue Star's Electro-Mechanical Projects and Commercial Air Conditioning Systems segment recorded revenue of ₹1,935.99 crore, up 16.3% from ₹1,664 crore in Q2 FY26. The company said product revenue was robust, while project execution delays affected the segment's result.

The segment result declined 9.5% to ₹133.15 crore, and its EBIT margin fell by 190 basis points to 6.9%. Blue Star attributed margin pressure to material-cost escalation. It also said supplies of heat pumps to the United States were continuing and that order enquiries remained strong.

The Unitary Products segment posted revenue of ₹897.66 crore, a 29.4% increase year-on-year. Blue Star linked room-air-conditioner demand to the extended summer and said its commercial refrigeration business was showing revival.

However, the segment result fell 51.4% to ₹20.74 crore. Its EBIT margin was 2.3%, down 390 basis points year-on-year, with material-cost escalation cited as the pressure point. The quarter therefore combined higher sales across key consumer and commercial categories with lower segment profitability in these two larger businesses.

How did the Professional Equipment business perform?

Blue Star's Professional Equipment and Industrial Solutions segment delivered the fastest growth among the reported businesses. Revenue rose 51.2% year-on-year to ₹97.30 crore, while the segment result increased 274.4% to ₹23.10 crore.

Its EBIT margin increased by 1,410 basis points to 23.7%. Blue Star said the completed sale of the MedTech business and a write-back of warranty provisions supported the margin. It also reported steady growth in the Industrial Solutions business.

The segment's scale remains smaller than the projects and unitary-products businesses, but its performance helped offset some of the margin pressure reported elsewhere. The disclosed figures show that the company experienced differing operating conditions across its portfolio rather than a uniform movement in profitability.

What do Blue Star's half-year results and balance sheet show?

For H1 FY27, Blue Star reported revenue from operations of ₹6,308.87 crore, up 16.7% year-on-year. Operating profit was ₹377.53 crore, down 3.1%, while profit before tax declined 12.1% to ₹259.70 crore.

Half-year net profit rose 1.5% to ₹226.42 crore and earnings per share increased to ₹11.01 from ₹10.68 in H1 FY26. The difference between revenue growth and operating-profit movement reflects the cost and margin pressures that were also visible in the Q2 segment disclosures.

Blue Star reported net worth of ₹3,486.70 crore as of the half year, compared with ₹3,110.96 crore in H1 FY26. It disclosed net borrowings or cash position of ₹706 crore, compared with negative ₹289.43 crore in the prior-year half, and net debt-to-equity of negative 0.08 versus 0.13.

What operational updates did Blue Star provide?

Blue Star said its integrated model spans research and development, manufacturing, trading, EPC contracting and after-sales services. The company reported operations in more than 18 countries, seven manufacturing facilities in India and more than 4,000 channel partners.

The company said it plans to strengthen its presence in the United States and Europe. It also reported receiving its first R&D patent and launching data-centre, brine and centrifugal chillers to expand its chiller portfolio.

For investors, the Q2 disclosures place attention on the order book of ₹7,229.22 crore, the pace of project execution and the effect of material costs on segment margins. The company did not provide a financial forecast in the supplied disclosures.

Conclusion

Blue Star's Q2 FY27 performance was marked by 21.0% consolidated revenue growth and a 25.4% rise in net profit, supported by higher sales across all three reported segments. At the same time, lower EBIT margins in projects and unitary products showed the impact of material-cost escalation and execution delays on operating profitability.

The next reported reference point is the carried-forward order book of ₹7,229.22 crore, alongside management's stated plans to strengthen operations in the United States and Europe. Investors will also track whether project execution and material costs continue to influence margins in the company's larger operating segments.