The arbitration proceedings relate to a claim filed by WJT before the International Chamber of Commerce in connection with the Shareholders’ Agreement dated October 1, 2015, entered into for managing the affairs of Blue Star Oman Electro Mechanical Company.
Blue Star had disclosed on July 23, 2026, that the arbitrator had issued an award in favour of the company, dismissing all claims made by WJT. As part of the legal remedies available to it, WJT has now approached the Dubai Court of Appeal seeking annulment of the award.
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Blue Star said annulment proceedings do not constitute an appeal or reconsideration of the merits of the award and are confined to limited grounds.
Following the annulment proceedings initiated by WJT, Blue Star said it will make appropriate submissions before the Dubai Court of Appeal. The company said it believes the grounds of annulment raised by WJT are baseless.
Blue Star said the development pertains to a subsequent development in the matter and does not constitute a material update. The company received the information on the appeal filed by WJT on Monday at 5:30 pm.
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Last week, Blue Star said it expects margin pressure to continue in the July-September 2026 quarter as higher raw material costs outweigh the benefit of price increases. The situation may begin easing towards the end of the third quarter through product redesign and material substitution, Managing Director B Thiagarajan said.
“The summer season was good, though it was short, and we couldn’t deliver in terms of margins. It was a very poor margin of around 3% in our unitary cooling product segment, attributable to the raw material price increase as well as the exchange rate. So, we thought that Q2 it should become better. It is not the case. It continues to be a painful quarter,” he said.
The company has raised prices twice, but Thiagarajan said it has still been unable to fully pass on the higher costs to customers.
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Blue Star expects minor margin improvement in the room air-conditioning business in the third quarter, with its full-year goal of taking margins to around 6.5% by the fourth quarter. New product launches towards the end of the third and fourth quarters will also help. Despite the margin pressure, Thiagarajan said demand has remained better than expected.
Shares of Blue Star Ltd ended at ₹1,486.80, down by ₹73.20, or 4.69%, on the BSE.
First Published: Sept 15, 2026 5:42 PM IST
