Blue Star Limited , a leading air conditioning and commercial refrigeration company, has revised its revenue growth guidance and faced challenges in the market, leading to a significant drop in its share price.

Revised Guidance and Market Reaction

• Blue Star has revised its revenue growth guidance to flat from the previous 5% projection.
• The company's shares declined over 6% following this announcement.
• Shares traded 5.5% lower at ₹1,814.4, down 10% from daily highs.

Challenges and Market Conditions

• The company reported challenges during the festive season despite GST rate reductions on consumer durables like air conditioners.
• Blue Star maintains a 65-day inventory that needs clearing before energy norm changes in January 2026.
• Management expects the Room AC industry to decline 15% but believes Blue Star will outpace industry growth.

Financial Outlook

• The company projects EBITDA margins of 7% to 7.5% for both Electro-Mechanical Projects (EMP) and Unitary Products (UCP) segments for the remainder of the year.
• Blue Star aims to maintain current margin levels despite the challenging market conditions.

Segment Performance

Electro-Mechanical Projects and Commercial Air Conditioning Systems

• The Electro-Mechanical Projects business saw good enquiry inflow but muted order finalization.
• Commercial Air Conditioning business growth aligned with market trends, with Blue Star maintaining leadership in key product categories.

Unitary Products

• The segment was affected by unfavorable weather conditions and the mid-quarter GST rate rationalization announcement.

Professional Electronics and Industrial Systems

• The segment experienced a decline, primarily due to uncertainties in the MedTech Solutions Business.
• Industrial Solutions and Data Security Solutions continued to perform well.

Future Outlook

Despite the current challenges, Blue Star remains focused on prudent cost management and optimizing working capital levels to enhance performance in the coming periods. The company expects a potential rise in demand during the Christmas and New Year period, driven by the upcoming energy label change scheduled for implementation on January 1, 2026.

Blue Star's ability to navigate these challenging market conditions and its strategy to outpace industry growth will be crucial for its performance in the coming quarters.

Blue Star Limited , a leading air conditioning and commercial refrigeration company, has announced the appointment of Manish Jha as Group President, Manufacturing and Senior Management Personnel, effective November 5, 2025. This strategic move comes as the company reports modest growth in its second quarter financial results for the fiscal year 2026.

Key Appointment Details

Manish Jha brings over 26 years of experience in manufacturing and supply chain operations to Blue Star. His appointment, recommended by the Nomination and Remuneration Committee and approved by the Board of Directors, is expected to strengthen the company's manufacturing capabilities.

Jha's professional background includes:

• Mechanical Engineering graduate from NIT, Patna
• Post-Graduate Diploma in Business Management from IIM, Indore
• Certification in Production and Inventory Management from the American Production and Inventory Control Society
• 16 years of experience overseeing manufacturing and supply chain operations for six manufacturing units at Tata Cummins
• Recent position as Head of Supply Chain at Tata Motors Commercial Vehicles

Q2FY26 Financial Performance

Alongside this key appointment, Blue Star reported its financial results for the quarter ended September 30, 2025:

• Revenue from Operations grew by 6.4% to Rs 2,422.37 crores
• Operating Profit (EBITDA excluding Other Income) increased by 22.8% to Rs 183.41 crores
• Net Profit grew by 2.8% to Rs 98.78 crores

The company faced some challenges during the quarter, including:

• Seasonal slowdown in the Room ACs segment due to extended monsoon and lower temperatures
• Deferred demand for Room ACs and Commercial Air Conditioning due to GST rate reduction announcement

Segment Performance

1. Electro-Mechanical Projects and Commercial Air Conditioning Systems

• Revenue grew by 16.5% to Rs 1,664.21 crores
• Segment result stood at Rs 147.14 crores (8.8% of Revenue)

2. Unitary Products (Room Air Conditioners and Commercial Refrigeration)

• Revenue declined by 9.5% to Rs 693.81 crores
• Segment result was Rs 42.72 crores (6.2% of Revenue)

3. Professional Electronics and Industrial Systems

• Revenue declined by 20.1% to Rs 64.35 crores
• Segment result was Rs 6.17 crores (9.6% of Revenue)

Outlook

Vir S. Advani, Chairman & Managing Director of Blue Star Limited, commented on the company's performance and future prospects: "While demand in some businesses was temporarily impacted, the Company's diversified portfolio and strong execution capabilities continue to reinforce its long-term growth trajectory. As far as the Room AC business is concerned, the benefit of GST rate rationalisation is likely to accelerate consumer demand and drive long-term market expansion."

The company remains focused on prudent cost management and optimizing working capital levels to enhance performance in the second half of the fiscal year.

With Manish Jha's appointment and the company's strategic focus on manufacturing and operational efficiency, Blue Star aims to strengthen its position in the market and capitalize on upcoming opportunities in the air conditioning and refrigeration sectors.