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Earnings Call Transcript

Blue Star Earnings Call Transcript: Key Takeaways

Blue Star missed margin expectations significantly due to inability to pass on commodity costs and a delayed summer. While revenue grew 13%, operational performance was hit by high-cost inventory and aggressive discounting to maintain market share.

Guidance and delivery
Management target Revenue 18.0% FY27
Highlights
Revenue growth13.3% YoY revenue growth driven by electro-mechanical projects.
MarginsStructural contraction in margins due to input cost and discounting.
Order bookRecord carried-forward order book of ₹7,764 crores, up 13.5%.
Demand visibilityStrong visibility in Data Centers; tepid outlook for commercial refrigeration.
Management confidenceBalanced but cautious regarding Middle East conflict and exchange rates.

Growth

Revenue grew 13.3% YoY, but PBT fell 23.7%, indicating very poor quality of earnings.

Outlook

Management targets 6.5% segment 2 margins for FY27 and 10% revenue growth in commercial AC.

Risks

Continued inability to pass on 8% input cost escalation; high competitive intensity in room ACs.

Last quarter's promises, checked

Delivered

  • Guided 13% price hike needed → delivered 13% realized by May (= BEAT)
  • Guided 15% revenue from Data Centers → delivered ~15% (= BEAT)
  • Guided 1.6m unit capacity (Sri City/Himachal) → delivered 1.6m capacity (= BEAT)

Partly delivered

  • Guided 8-10% Commercial AC growth → delivered ~10% revenue growth (= PARTIAL)

Missed

  • Guided 8-8.5% Segment 2 margins → delivered 6.5% (= MISS)
  • Guided 17.5m unit industry size FY27 → current call implies lower base (= MISS)
  • Guided 15% market share goal → delivered 14.25% (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: BLUESTARCO. Summary written with AI assistance from the document.

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Blue Star Ltd: key numbers

Share price
₹1,565.00
Market cap
₹32,179 Cr
Revenue (annual)
₹12,402 Cr
Net profit (annual)
₹527.7 Cr
P/E (TTM)
63.2×Sector 45.9×
Promoter holding
36.50%+0.01% QoQ
FII holding
12.75%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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