Shares of Blue Star Ltd declined 3.08% to ₹1,744.80 on Monday, August 11, after Chairman and Managing Director Vir S Advani announced a downward revision in the company’s revenue growth guidance for FY26. The air conditioning and commercial refrigeration major now expects around 10% growth, compared to its earlier projection of 20%, citing weaker summer demand. EBIT margins are forecast at 8–8.5%.
In an interview with CNBC-TV18, Advani acknowledged that the April–June 2025 quarter was impacted by unseasonal rains and a shorter summer. Revenue for Q1FY26 grew 4% year-on-year to ₹2,982 crore, while EBITDA dropped 16% to ₹200 crore and PBT fell 28% to ₹163 crore. The unitary cooling products (UCP) segment saw severe de-growth, whereas the B2B segment recorded 36% revenue growth and 11% EBIT growth.
The company, with a market capitalisation of ₹36,985.99 crore, aims to recover momentum in the second half of the fiscal through festive season sales and market share gains. However, Advani noted that the lost business from Q1 cannot be fully recovered.
Blue Star shares have traded in a range of ₹1,521 to ₹2,417 over the past year, with a P/E ratio of 66.04 and a dividend yield of 0.52%.
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