Net profit came in above the CNBC-TV18 poll estimate of ₹173 crore. Operating profit (PBIDTA excluding other income) rose 16.8% to ₹326.25 crore, or 8% of revenue, against ₹279.40 crore, or 7% of revenue, in Q4FY25.
Revenue for the quarter rose 1.3% year-on-year to ₹4,072 crore, compared with ₹4,019 crore in the same period last year, while falling short of CNBC-TV18 poll estimates of ₹4,276 crore.
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EBITDA rose 16.6% year-on-year to ₹325.2 crore, compared with ₹279 crore in the corresponding quarter last year and ahead of the CNBC-TV18 poll estimate of ₹282 crore. EBITDA margin stood at 8%, compared with 6.9% a year ago and higher than the CNBC-TV18 poll estimate of 6.6%.
The company noted that pursuant to Labour Codes notification and ICAI guidance, it had earlier recognised an estimated incremental impact of gratuity and leave encashment of ₹56.35 crore up to December 31, 2025, as an exceptional item. In Q4FY26, this was reassessed at ₹38.83 crore, resulting in a reversal of ₹17.52 crore in the quarter.
Finance costs for the quarter rose to ₹23.06 crore from ₹18.75 crore in Q4FY25. Other income, including treasury income, stood at ₹23.95 crore compared with ₹23.99 crore a year earlier. Tax expense increased to ₹72.91 crore from ₹54.82 crore.
Profit before share of profit/loss of JV and exceptional items rose 11.9% to ₹278.92 crore from ₹249.22 crore. Net profit increased 17.1% to ₹227.18 crore compared with ₹194.00 crore in Q4FY25.
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For FY26, revenue from operations increased to ₹12,401.99 crore from ₹11,967.65 crore in FY25, reflecting 3.6% growth. The Room Air Conditioner segment was affected during summer 2025 due to unseasonal rains, though demand recovered towards the end of the year, helping the company record its highest-ever quarterly revenue in Q4FY26.
Growth in Projects, Commercial Air Conditioning and International Business also supported overall performance.
Operating profit rose 6.2% to ₹930.41 crore, or 7.5% of revenue, from ₹875.92 crore, or 7.3% of revenue, in FY25. Profit before exceptional items and tax declined 3.9% to ₹741.94 crore from ₹772.42 crore. Net profit for the year fell to ₹527.33 crore from ₹591.28 crore, with margins at 4.3% compared with 4.9% in FY25.
Other income declined 17.5% to ₹61.91 crore, while finance cost increased to ₹72.14 crore from ₹48.80 crore, mainly due to higher borrowing for working capital requirements. Tax expense stood at ₹175.78 crore compared with ₹193.65 crore, with an effective tax rate of 25% versus 24.7%.
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Net cash balance as of March 31, 2026, was ₹175.45 crore compared with ₹640.35 crore a year earlier. Capital employed increased to ₹3,258.41 crore from ₹2,427.28 crore. Earnings per share (face value ₹2) stood at ₹25.65 compared with ₹28.76. Carried forward order book as of March 31, 2026, grew 10.5% to ₹6,923 crore from ₹6,263.36 crore as of March 31, 2025.
Revenue from the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment grew 12.8% to ₹6,762.80 crore in FY26 from ₹5,997.99 crore in FY25. The segment result rose to ₹501.91 crore, compared with ₹490.88 crore in FY25, while margin stood at 7.4% versus 8.2% a year earlier.
Unitary Products revenue declined 5.1% to ₹5,332.36 crore in FY26 from ₹5,621.11 crore in FY25. The segment result fell to ₹434.82 crore from ₹471.26 crore, with a margin at 8.2% compared with 8.4% in the previous year. The company said the Room Air Conditioners business was impacted in Q1FY26 due to early monsoon onset and a mild summer, though demand improved in Q4FY26, driven by higher offtake in March and channel stocking across regions ahead of the summer.
Revenue from the Professional Electronics and Industrial Systems business declined 12% to ₹306.83 crore in FY26 from ₹348.55 crore in FY25. The segment result increased to ₹34.89 crore from ₹29.72 crore, with a margin at 11.4% compared with 8.5% in the previous year.
Blue Star has recommended a final dividend of ₹8.5 per equity share of ₹2 each for the financial year ended March 31, 2026. The dividend, as recommended by the Board of Directors and subject to approval at the AGM, will be paid or dispatched after August 6, 2026, to eligible shareholders whose names appear in the Register of Members or Beneficial Owners as on the record date.
The company has fixed Friday, July 17, 2026, as the record date for determining eligibility for the final dividend.
Shares of Blue Star Ltd ended at ₹1,807.35, up by ₹4.95, or 0.27%, on the BSE.
