Blue Star Limited filed its Investors' Presentation for the Fourth Quarter and Financial Year ended March 31, 2026, pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on May 7, 2026. The company had earlier announced its audited financial results following Board of Directors and Audit Committee meetings held on May 5–6, 2026. Blue Star reported a 3.6% growth in consolidated revenue to ₹12,401.99 cr in FY26 compared to ₹11,967.65 cr in FY25, while Q4 FY26 EBITDA rose 17% year-on-year to ₹326.25 cr with an EBITDA margin of 8.0%. The company described FY26 as a challenging year with multiple headwinds affecting revenue and profitability across businesses, though demand for Room Air Conditioners picked up towards the end of the year, helping it post its highest ever quarterly revenue in Q4 FY26. The Board recommended a final dividend of ₹8.50 per equity share of ₹2 each for FY26, lower than ₹9 per share in FY25. The statutory auditors, M/s Deloitte Haskins & Sells LLP, issued unmodified audit reports on both standalone and consolidated financial results for the year ended March 31, 2026.

Consolidated Financial Performance

Blue Star's consolidated financials for the quarter and year ended March 31, 2026 reflect the following key metrics (₹ in Crores):

Q4 FY26 EBITDA (excluding other income) stood at ₹326.25 cr (8.0% margin) compared to ₹279.40 cr (7.0% margin) in Q4 FY25, reflecting a 17% year-on-year increase. For FY26, EBITDA stood at ₹930.41 cr (7.5% margin) versus ₹875.92 cr (7.3% margin) in FY25, a growth of 6.2%, mainly owing to the company's overall focus on cost management. PBT before exceptional items was ₹282.57 cr in Q4 FY26 versus ₹248.82 cr in Q4 FY25, while for FY26 it stood at ₹741.94 cr versus ₹772.42 cr in FY25, a decline of 3.9%. Net profit for FY26 declined to ₹527.33 cr (4.3% of revenue) from ₹591.28 cr (4.9% of revenue) in FY25. Tax expense for FY26 was ₹175.78 cr compared to ₹193.65 cr in FY25, with an effective tax rate of 25.0% for FY26 versus 24.7% for FY25. Net cash balance as of March 31, 2026, stood at ₹175.45 cr compared to ₹640.35 cr in the previous year, while capital employed increased to ₹3,258.41 cr from ₹2,427.28 cr.

Q4 FY26 Key Financial Highlights

Not Annualized

Standalone Financial Performance

On a standalone basis, Blue Star reported the following key metrics for the quarter and year ended March 31, 2026 (₹ in Crores):

Key standalone financial ratios for FY26 include an operating margin of 6.14% (FY25: 6.50%), net profit margin of 3.25% (FY25: 4.26%), debt equity ratio of 0.24 (FY25: 0.11), and net worth of ₹3,059.75 Crores (FY25: ₹2,854.00 Crores). Net cash generated from operating activities on a standalone basis stood at ₹41.44 Crores (FY25: ₹662.20 Crores), with cash and cash equivalents at the end of the year at ₹292.07 Crores (FY25: ₹299.76 Crores).

Segment-Wise Performance

Blue Star operates across three business segments. The following tables present Q4 FY26 and full-year segment highlights:

Q4 FY26 Segment Performance

FY26 Segment Performance

The Electro-Mechanical Projects and Commercial Air Conditioning segment grew by 12.8% to ₹6,762.80 cr in FY26, driven by demand from buildings, data centres, and factories. Order inflow for Q4 FY26 was higher by 35.7% compared to the corresponding quarter of FY25 (₹1,954.39 cr in Q4 FY26 vs ₹1,439.99 cr in Q4 FY25), though order inflow for the full year was lower by 10% compared to FY25 due to sluggishness in previous quarters. The carried-forward order book of the Electro-Mechanical Projects business stood at ₹4,664.47 cr as on March 31, 2026, compared to ₹4,755.19 cr as on March 31, 2025. The Unitary Products segment revenue declined by 5.1% to ₹5,332.36 cr due to a mild summer, though the Room Air Conditioner business witnessed reasonable growth with primary demand picking up in March; the company also launched a wide range of new room ACs in compliance with new BEE norms and gained market share marginally during the year. The Professional Electronics and Industrial Systems segment revenue grew 7.3% in Q4 FY26 but declined 12.0% for the full year to ₹306.83 cr, as the Med-Tech Solutions business slowed due to an unclear regulatory policy framework, while the Industrial Solutions business continued to grow driven by demand from the automotive and steel industries. Despite tariff-related uncertainties, the company's expansion in the US is progressing and supplies to Europe have commenced.

Exceptional Items and Labour Code Impact

Pursuant to the notification of Labour Codes by the Government of India, consolidating twenty-nine existing labour laws, the company recognised an incremental impact on gratuity and leave encashment liabilities. On a consolidated basis, a one-time expense of ₹56.35 Crores was recognised as an exceptional item for the period ended December 31, 2025. Following a reassessment of the revised compensation structure and actuarial assumptions, the liability was redetermined at ₹38.83 Crores, resulting in a reversal of excess provision of ₹17.52 Crores in Q4 FY26. On a standalone basis, the initial exceptional charge was ₹53.73 Crores, subsequently revised to ₹35.91 Crores, with an excess provision of ₹17.82 Crores reversed in Q4 FY26. Exceptional items on both bases also include a one-time, non-recurring expense of ₹1.28 Crores for the quarter and year ended March 31, 2026. The net consolidated exceptional item for FY26 amounted to ₹38.83 Crores.

Key Financial Ratios and Balance Sheet Highlights

The following table summarises key consolidated financial ratios and balance sheet metrics as at March 31, 2026:

Cash Flow Highlights

The consolidated statement of cash flows for the year ended March 31, 2026 reflects the following key movements (₹ in Crores):

Dividend, Order Book, and Outlook

The Board recommended a final dividend of ₹8.50 per share (face value ₹2 each), lower than ₹9 per share in FY25. The 78th Annual General Meeting is scheduled for August 6, 2026, with a record date of July 17, 2026. The carried-forward order book as of March 31, 2026, grew by 10.5% to ₹6,923.00 Crores compared to ₹6,263.36 Crores as of March 31, 2025. Management noted that from the second week of April 2026, summer has set in and secondary sales of Room Air Conditioners have picked up momentum. The Electro-Mechanical Projects and Commercial Air Conditioning business segment is expected to maintain growth momentum driven by encouraging demand from manufacturing and data centre sectors. Management expressed cautious optimism about the prospects for FY27, while noting potential challenges from rising input costs, volatile exchange rates, and the ongoing Middle East crisis, which could lead to supply chain disruptions.

Blue Star Limited's Board of Directors, at their meeting held on Wednesday, May 6, 2026, approved the segregation of its unified Code of Conduct on Insider Trading into two separate and distinct codes. Importantly, the segregation involved no revision or modification to the substance of the existing codes. Both codes will be hosted on the company's official website at the designated guiding policies section.

Segregation of Insider Trading Code

Previously, the Code of Internal Procedures and Conduct for Regulating, Monitoring and Reporting of Trading by Insiders and the Code of Fair Disclosure of Unpublished Price Sensitive Information (UPSI) were combined as a single code. Following the Board's approval, these have now been formally separated into the following two independent codes:

• Code of Internal Procedures and Conduct for Regulating, Monitoring and Reporting of Trading by Insiders
• Code of Fair Disclosure of Unpublished Price Sensitive Information

The segregation has been carried out in line with the requirements of Regulation 8(1) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Code of Fair Disclosure — Key Principles

The Code of Fair Disclosure of UPSI is designed to ensure prompt, timely, and adequate disclosure of unpublished price sensitive information. The following principles govern the practices and procedures under this code:

• Prompt public disclosure of UPSI that would impact price discovery, as soon as credible and concrete information comes into being, with prior intimation to the Compliance Officer and Stock Exchange(s)
• Uniform and universal dissemination of UPSI to avoid selective disclosure
• Designation of a senior officer as Chief Investor Relations Officer to handle dissemination of information and disclosure of UPSI
• Prompt dissemination of UPSI that gets disclosed selectively, inadvertently, or otherwise, to make such information generally available
• Appropriate and fair response to queries on news reports and requests for verification of market rumours by regulatory authorities
• Ensuring information shared with analysts and research personnel does not constitute UPSI
• Developing best practices to make transcripts or records of proceedings of meetings with analysts and investor relations conferences available on the official website
• Handling of all UPSI on a need-to-know basis

Legitimate Purpose

The Code defines "legitimate purpose" as the sharing of UPSI in the ordinary course of business by an Insider with partners, collaborators, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals, or other advisors or consultants, provided such sharing is not carried out to evade or circumvent the prohibitions under the Regulations. Any person receiving UPSI pursuant to a legitimate purpose shall be considered an Insider under the Regulations, and due notice must be given to maintain confidentiality.

Code Details at a Glance

The following table summarises the key administrative details of the Code of Fair Disclosure:

Amendment Provisions

The Board of the Company retains the authority to review and amend the Code from time to time, on the recommendation of the Audit Committee. Any amendments, clarifications, or circulars issued by relevant authorities that are inconsistent with the provisions of this Code shall prevail, and the Code shall stand amended accordingly from the effective date specified in such communications.

Rajesh Parte, Company Secretary & Compliance Officer (Membership No.: A10700), signed the disclosure on behalf of Blue Star Limited.