Shares of Blue Star Ltd gained 1.68% to Rs 1,949.90 on Thursday after the company posted modest Q2 FY26 results, highlighting steady performance in its Electro-Mechanical Projects business amid challenges in the Room AC segment.
Revenue and profitability
For the quarter ended September 30, 2025, revenue from operations grew 6.4% year-on-year to Rs 2,422.37 crore, compared with Rs 2,275.96 crore in Q2 FY25. The growth was led by consistent project execution and resilience in commercial refrigeration, even as extended monsoon conditions and GST-related disruptions weighed on demand in Room ACs.
Operating profit, excluding other income, increased 22.8% YoY to Rs 183.41 crore, or 7.6% of revenue, compared to Rs 149.31 crore (6.6%) in the same period last year. However, other income dropped to Rs 10.01 crore from Rs 18.51 crore, and finance costs rose sharply to Rs 16.92 crore from Rs 6.48 crore, reflecting higher borrowings.
Net profit inched up 2.8% to Rs 98.78 crore, compared to Rs 96.06 crore in Q2 FY25, with earnings per share (EPS) improving slightly to Rs 4.80 versus Rs 4.67 a year ago.
Business outlook and order book
The company’s order book expanded 7.9% YoY to Rs 7,120.44 crore as of September 30, 2025, driven by sustained project inflows across infrastructure and industrial cooling solutions. Capital employed increased to Rs 3,530.88 crore, while net borrowings stood at Rs 417.06 crore, marking a shift from a net cash position of Rs 185.26 crore last year.
Blue Star attributed the moderate growth to seasonal factors, a post-GST rate adjustment impact, and extended rainfall, which deferred purchases in residential and commercial AC categories.
At 9:32 AM, the stock traded at Rs 1,949.90, up Rs 32.30 from the previous close of Rs 1,917.60, with a market capitalization of Rs 4.02 lakh crore on the NSE.
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