Blue Star Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, detailing its performance on environmental, social, and governance parameters. The report, which forms part of the Annual Report, discloses a total turnover of ₹117,792.26 million and a net worth of ₹30,597.52 million. The company reported a workforce of 14,125 individuals, comprising 4,779 employees and 9,346 workers, with women representing 8.93% of the employee base and 1.24% of the worker base.

The company’s operations are divided into two primary business segments: Electro-Mechanical Projects and Commercial Air Conditioning Systems, which accounts for 55% of turnover, and Unitary Products, which accounts for 45%. Blue Star reported that 79% of its input material was sourced sustainably in terms of spend value during the year. The company has also committed to achieving Net Zero in Scope 1 and 2 emissions, implementing energy-efficiency projects and monitoring mechanisms to support this roadmap.

Environmental Performance

Blue Star has integrated sustainability into its product development strategy, focusing on energy efficiency and reducing environmental impact. During FY 2025-26, the company prioritized the transition towards low global warming potential (GWP) refrigerants, including the commercialization of products utilizing R290 refrigerant technology. The company expanded the adoption of inverter-based variable speed technologies across its portfolio, including room air conditioners and chillers.

The report highlights that 57.98% of Research and Development (R&D) investments and 26.62% of capital expenditure (capex) were directed towards technologies to improve environmental and social impacts. Blue Star has obtained authorisation as a Producer under the E-Waste (Management) Rules, 2016, ensuring the disposal of e-waste through authorised recyclers. All manufacturing facilities operate on a zero process discharge basis, utilizing Effluent Treatment Plants (ETP) and Sewage Treatment Plants (STP).

Social and Governance Metrics

The company’s governance structure includes a Corporate Social Responsibility and Environmental, Social & Governance (ESG) Committee, responsible for decision-making on sustainability issues. Blue Star has implemented a robust Environment, Health and Safety (EHS) framework, achieving ISO 45001 certifications for all its manufacturing facilities. The report notes that there were no fines, penalties, or imprisonment cases involving the entity or its directors and Key Managerial Personnel (KMPs) during the financial year.

In terms of stakeholder engagement, Blue Star identified key groups including employees, customers, suppliers, and shareholders. The company reported one instance of unauthorised access to product installation data during the year, which was promptly addressed and disclosed to the stock exchanges. The report also details the company's affirmative action initiatives, including a target to achieve 10% representation of Dalit vendors within its procurement ecosystem.

Financial and Operational Data

Blue Star Limited has convened its 78th Annual General Meeting (AGM) scheduled for Thursday, August 6, 2026, at 3:30 p.m. IST, to be conducted through Video Conferencing (VC)/Other Audio Visual Means (OAVM) in compliance with applicable circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI). The meeting notice was issued on July 13, 2026, and the Integrated Annual Report for Financial Year 2025-26 has been dispatched to shareholders electronically.

AGM Key Details at a Glance

The following table summarises the critical dates and parameters for the 78th AGM:

Agenda for the 78th AGM

The following resolutions are proposed to be transacted at the meeting:

FY26 Financial Performance

The Company reported its financial results for the year ended March 31, 2026. On a consolidated basis, revenue from operations grew by 3.62% to ₹12,401.99 crores, compared to ₹11,967.65 crores in the previous financial year. Total consolidated income for FY26 stood at ₹12,463.90 crores.

On a standalone basis, revenue from operations grew by 4% to ₹11,779.23 crores from ₹11,325.75 crores in the previous year. Standalone net profit after exceptional items and tax declined to ₹385.10 crores from ₹484.90 crores in the previous year.

During FY26, the Company recognised a non-recurring exceptional item of ₹56.35 crores relating to the implementation of new Labour Codes, as required by the ICAI Guidance Note, which impacted net profit for the year.

Segment Performance

The Group operates through three business segments. The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment recorded revenue of ₹6,762.80 crores in FY26, a growth of 12.75% from ₹5,997.99 crores in the previous year, with segment results growing 2.25% to ₹501.91 crores. The Unitary Products segment saw revenue decline to ₹5,332.36 crores from ₹5,621.11 crores, a drop of 5%, with segment results declining 7.73% to ₹434.82 crores. The Professional Electronics and Industrial Systems segment recorded revenue of ₹306.83 crores, down 12% from ₹348.55 crores, while segment results grew 17.4% to ₹34.89 crores.

Director Re-appointment and Cost Auditor Approval

Rajiv R Lulla (DIN: 06384402), aged 58 years, retires by rotation at the ensuing AGM and is eligible for re-appointment. He holds a Bachelor's degree in Mechanical Engineering with Electronics from King's College London and a Master's degree from Imperial College London. He is a Founding Partner at Deep Blue Advisors and brings over 30 years of experience in mergers and acquisitions, capital raising, and corporate advisory. He has completed transactions with a combined value exceeding $220 billion and has held senior leadership positions at Merrill Lynch, Crédit Agricole Group, and Deutsche Bank. He joined the Board of Blue Star in December 2016 and attended 5 out of 5 Board meetings during FY26.

The Board has also recommended approval of the remuneration of ₹15,73,000 (Rupees Fifteen Lakhs Seventy Three Thousand only) plus reimbursement of out-of-pocket expenses for Narasimha Murthy & Co, Hyderabad, Cost Accountants (Firm Registration No. 000042), appointed as Cost Auditor for the financial year ended March 31, 2027.

Dividend and Unclaimed Dividend Matters

The Board recommended a final dividend of ₹8.5 per equity share of face value ₹2 each for FY26. Dividend will be paid only through electronic mode after August 6, 2026, subject to TDS deductions as per the Income Tax Act, 2025. Members are required to submit relevant tax documents to the RTA on or before Friday, July 17, 2026 by 5:00 p.m. to ensure appropriate tax treatment.

Members whose dividends for FY2018-19 remain unpaid or unclaimed are requested to make their claim before Friday, September 18, 2026. An amount of ₹60,72,740, being unclaimed/unpaid dividend for Financial Year 2017-18, was transferred to the Investor Education and Protection Fund (IEPF) in September 2025. During the year, 41,478 equity shares were also transferred to the IEPF Authority corresponding to unclaimed dividend for the year 2017-18.

E-voting and Participation Instructions

Remote e-voting will be provided by NSDL. Members holding shares as on the cut-off date of Thursday, July 30, 2026, may cast their votes electronically. Members wishing to speak at the AGM may register as speakers by sending a request to agmspeakers@bluestarindia.com by Friday, July 24, 2026 (5:00 p.m. IST). The VC/OAVM facility will open 30 minutes before the scheduled AGM time and allows participation of at least 1,000 members on a first-come-first-serve basis. The Scrutiniser for the e-voting process is Ms Deepti Kulkarni (Membership No. A34733 and CP No. 22502), or failing her, Mr Omkar Dindorkar (Membership No. A43029 and CP No. 24580) of MMJB & Associates LLP, Company Secretaries.