Blue Star Limited Earnings Summary — Q1 FY2027
Blue Star Reports Strong Q1 Revenue Growth Driven by Projects Segment Despite Profit Contraction
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 17.0% sequentially in Q1 FY2027.
- Revenue of ₹3,378 Cr is 13.3% higher year-on-year.
- Revenue has compounded at 0.7% annualised over the last 10 quarters.
- Net profit of ₹103 Cr is 15.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -18.1% annualised across the period.
- Operating margin stands at 5.2% in Q1 FY2027.
- Operating margin compressed by 149 bps year-on-year.
- Over the last two years operating margin has contracted by 313 bps.
- PBT margin is 4.0%.
- Expenses grew 15.1% against revenue growth of 13.3%.
- Operating profit of ₹175 Cr is 12.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 45/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 3,378 | 4,072 | 2,925 | 2,422 | 2,982 | 4,019 | 2,807 | 2,276 | 2,865 | 3,328 |
| Expenses | Accelerating | 3,203 | 3,746 | 2,705 | 2,240 | 2,784 | 3,740 | 2,599 | 2,127 | 2,628 | 3,086 |
| Operating Profit | Stable | 175 | 326 | 220 | 182 | 199 | 279 | 209 | 149 | 238 | 242 |
| Operating Margin | Stable | 5.2% | 8.0% | 7.5% | 7.5% | 6.7% | 6.9% | 7.4% | 6.5% | 8.3% | 7.3% |
| Other Income | Volatile | 30 | 45 | -44 | 10 | 16 | 24 | 21 | 19 | 24 | 13 |
| Interest | Volatile | 13 | 23 | 22 | 17 | 10 | 19 | 16 | 6 | 8 | 12 |
| Depreciation | Improving | 57 | 48 | 46 | 43 | 41 | 35 | 35 | 30 | 28 | 28 |
| Profit Before Tax | Volatile | 135 | 300 | 108 | 132 | 163 | 249 | 179 | 131 | 226 | 214 |
| Tax | Volatile | 32 | 73 | 27 | 33 | 42 | 55 | 47 | 35 | 57 | 54 |
| Net Profit | Volatile | 103 | 227 | 81 | 99 | 121 | 194 | 133 | 96 | 169 | 161 |
| Net Margin | Stable | 3.0% | 5.6% | 2.8% | 4.1% | 4.1% | 4.8% | 4.7% | 4.2% | 5.9% | 4.8% |
Key Takeaways
- Revenue grew by 13.3% YoY to ₹3,377.92 Cr, supported by growth in Electro-mechanical projects and Unitary products.
- Net profit saw a decline to ₹102.51 Cr compared to ₹120.82 Cr in the same quarter last year, despite an exceptional gain of ₹9.17 Cr from property sale.
- Operating margin contracted significantly to 5.18% from 6.71% YoY and 8.01% QoQ, reflecting pricing pressures and seasonal shifts.
- The Unitary products segment, though seasonal, contributed ₹1,689.31 Cr to revenue but saw a sharp drop in segment results to ₹49.69 Cr.
- The company's debt profile improved remarkably, with the Debt-Equity ratio dropping to 0.00 in Q1 FY27 from 0.18 in the previous quarter.
- Management appointed Mr. Nikhilesh Panchal as an Independent Director to strengthen corporate governance for a five-year term.
Management Guidance
Management maintains a focus on premiumization and manufacturing self-reliance through its Sri City facilities. While acknowledging seasonality in unitary products, they emphasize long-term growth in central air conditioning and commercial refrigeration.
Sentiment Shift
Stable
While revenue continues to scale, the sharp compression in margins and sequential profit decline reflects typical seasonality and competitive headwinds in the consumer durable space.
Outlook
The outlook remains positive for the MEP segment given the strong project pipeline, though the Unitary segment faces near-term margin volatility due to raw material costs and intense competition.
From the Annual Report (Key Quotes)
“The Unitary product segment is seasonal in nature.”
“Approved and taken on record the Un-audited Standalone and Consolidated Financial Results for the First Quarter ended on June 30, 2026.”
“Blue Star Limited has recognised profit on sale of property of ₹9.17 Crores reported as exceptional income.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Blue Star Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.