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and Conduct for Regulating, Monitoring and Reporting of Trading by Insiders and the Code of Fair Disclosure of Unpublished Price Sensitive Information (UPSI) were combined as a single code.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• Code of Fair Disclosure of Unpublished Price Sensitive Information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The Code of Fair Disclosure of UPSI is designed to ensure prompt, timely, and adequate disclosure of unpublished price sensitive information.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.

The air conditioning industry is facing a critical supply shortage during peak summer season, leaving customers unable to purchase units despite soaring demand. Industry estimates reveal that AC sales have surged 20%-25% year-over-year in the last two weeks, creating a significant supply-demand mismatch.

Supply Shortage Impact

Customers across the market are finding themselves stranded as air conditioner availability becomes increasingly scarce during the most crucial period for cooling equipment sales. The shortage comes at a time when consumer demand has reached peak levels due to rising temperatures.

Sales Performance Overview

Industry Players Affected

Major air conditioning companies including Blue Star and Voltas are experiencing the impact of this supply-demand imbalance. The shortage affects the broader industry's ability to capitalize on the strong seasonal demand typically seen during summer months.

Market Dynamics

The 20%-25% year-over-year sales growth in the last two weeks demonstrates robust consumer demand for air conditioning units. However, the supply constraints are preventing the industry from fully meeting this increased demand, resulting in customers being unable to secure the cooling equipment they need during the peak summer period.