Blue Star Ltd (Consumer Electronics) — fundamental analysis, earnings data, and key metrics. PE: 71.8. ROE: 20.6%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Apr 19, 2026
What: Energy Label Change: January 1, 2026
Impact: 5-8% price increase
“the Room Air-Conditioner business has witnessed modest growth owing to channels building up the inventory ahead of the energy label change deadline”
What: Market Share %: Crossed 14%
“We have not yet reached our first goal of reaching 15% market share. We are somewhere, we have crossed 14%”
What: January Order Inflow: ₹400 Cr
“in January itself, we will have close to Rs. 400 cr worth of orders already, which is a record month again.”
What: Unitary Products (Segment-II) margins at 8.5% vs 7-7.5% guidance.
“The margin improvement is basically our own decision of not to get into discounting in order to improve the numbers.”
What: 7% to 7.5% → 8.5%
“Q4FY26 and FY27, the margin outlook is 8.5%.”
Earnings deceleration risks from management commentary
Trigger: Notification of Labour Codes required a one-time estimated provision.
Impact: PAT impact: ₹56.35 Cr
Management view: Recognized as a non-recurring exceptional item in Q3.
Monitor: labor
Trigger: Volatility in raw material markets and currency exchange rates.
Management view: Planning to revise prices upwards in Q4FY26.
Monitor: commodity
Trigger: Weather patterns continue to be unpredictable, impacting secondary sales.
Management view: Monitoring summer onset; focusing on B2B to weatherproof the business.
Monitor: climate
Key quotes from recent conference calls
“I think we should be very happy if we end the year anywhere between 7% to 7.5%. We will work towards 7.5%, it can well be 7%. [Previous UCP (Segment-II) Margin guidance]”
“So the guidance as far as Segment-I is concerned, it is 7% to 7.5%. That's what you should go ahead with. [Previous Segment-I Margin guidance]”
“weatherproofing Blue Star is a program... which means you need to look at the B2B businesses as well, like the commercial refrigeration is not that season-dependent [Initiative: Weatherproofing Blue Star]”
“This will result in, my estimation is that somewhere around at least 10% of net increase to the consumers [Initiative: Price Hikes]”
Headline numbers from the latest earnings call
Revenue
₹2,925.31 Cr
Why: Revenue growth was driven by the Room Air-Conditioner business witnessing growth for the first time this fiscal due to channel inventory building ahead of energy label changes.
Growth was modest as commercial refrigeration remained muted and large order finalizations in the projects business were deferred.
EBITDA
₹220.72 Cr
Why: Margins were supported by cost reduction initiatives and a decision to avoid heavy discounting despite inventory pressures in the industry.
EBITDA margins remained flat YoY at 7.5% as cost controls offset lower infrastructure project profitability.
PAT
₹80.55 Cr
Why: PAT was significantly impacted by a non-recurring exceptional item of ₹56.35 Cr related to incremental Gratuity and Leave Encashment following Labour Code notifications.
Excluding the exceptional item, the underlying profit performance was more resilient than the reported figure suggests.
Other Highlights
• Exceptional item of ₹56.35 Cr recognized for incremental Gratuity and Leave Encashment impact.
• Net Borrowings stood at ₹352 Cr vs a Net Cash position of ₹102 Cr in the previous year.
• Carried-forward order book grew 1.3% YoY to ₹6,898.74 Cr.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Carried-Forward Order Book
₹6,898.74 Cr
Why: Modest growth as large order finalizations were deferred to the next quarter.
Segment-I (Projects/Commercial AC) Revenue
₹1,696.21 Cr
Why: Growth supported by healthy demand in commercial offices and data centers.
Segment-II (Unitary Products) Revenue
₹1,154.22 Cr
Why: Revival in Room AC growth was offset by muted performance in Commercial Refrigeration.
Room AC Market Share
14%
Why: Marginal gains achieved by outperforming industry peers in a challenging year.
Inventory Level (Weeks)
5 to 6 weeks
Why: Management intentionally slowed production to avoid being saddled with old energy label stock.
Segment-I EBIT Margin
6.8%
Why: Impacted by lower profitability in infrastructure projects nearing closure.
Segment-II EBIT Margin
8.5%
Why: Improved due to cost optimization and pricing discipline ahead of label changes.
Export Revenue Target (3-Year)
15%
Why: Long-term goal to build global manufacturing capability and footprint.
Forward-looking targets from management for FY27
Revenue Growth Target
10%
OPM Guidance
8.5%
10% growth for Segment-I
Targeting 8.5% for Segment-II and 6.5-7% for Segment-I.
Guidance Changes
Segment-II Margin: 7% to 7.5% → 8.5%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Blue Star Ltd's latest quarterly results (Dec 2025) show
Blue Star Ltd's current PE ratio is 71.8x.
Blue Star Ltd's price-to-book ratio is 12.4x.
Blue Star Ltd's fundamental strength based on key financial ratios
Blue Star Ltd has a debt-to-equity ratio of N/A.
Blue Star Ltd's return ratios over recent years
Blue Star Ltd's operating cash flow is positive (FY2025).
Blue Star Ltd's current dividend yield is 0.48%.
Blue Star Ltd's shareholding pattern (Mar 2026)
Blue Star Ltd's promoter holding has remained stable recently.
Blue Star Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Blue Star Ltd has 5 key growth catalysts identified from recent earnings analysis
Blue Star Ltd has 3 key risks worth monitoring
In Q3 FY26, Blue Star Ltd's management highlighted
Blue Star Ltd's management has provided the following forward guidance for FY27
Blue Star Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Blue Star Ltd may be worth studying
Blue Star Ltd investment thesis summary:
Blue Star Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
