RAC Market Share (Value)
14.25%
+marginally YoY
Gained marginal market share in Q4 FY26 despite multiple headwinds.
BLUESTAR
Other
30 Apr 2026
Blue Star Ltd — Q4 FY26
Blue Star reported Q4 FY26 revenue of ₹4,720 crore (+1.3% YoY) and EBITDA margin of 8.0% (+100bps YoY), driven by cost rationalization and low ad spend.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Blue Star reported Q4 FY26 revenue of ₹4,720 crore (+1.3% YoY) and EBITDA margin of 8.0% (+100bps YoY), driven by cost rationalization and low ad spend. PAT grew 17.1% to ₹227.2 crore. The RAC business gained marginal market share despite a weak summer, while the MEP segment saw strong order inflow (+35.7% YoY) led by data centers and manufacturing. Management guided for 8-8.5% segment margins in FY27 but flagged margin pressure from commodity inflation and the need to pass on ~13% price hikes (only 8% realized so far). Key risk: if the ongoing summer season disappoints, price pass-through may stall, compressing margins further.
Key Numbers
Order Inflow (MEP Segment)
₹1,954.4 crore
+35.7% YoY
Strong order inflow driven by data centers and manufacturing sectors.
Carried Forward Order Book
₹6,923 crore
+10.5% YoY
Order book grew to ₹6,923 crore as of March 31, 2026.
RAC Industry Volume (FY26 Est.)
14.75M units
-5% YoY
Industry volume estimated to have declined ~5% in FY26 due to weak summer.
Management Guidance
FY27 RAC Segment Margin Target 8-8.5%
Management expects unitary products segment margins to remain in the 8-8.5% range for FY27, assuming successful price pass-through.
Management guidance marginsQ1 FY27 Industry RAC Growth 25-30% YoY
If summer progresses well, management expects Q1 FY27 industry primary sales to grow 25-30% YoY (15% volume, 10% price).
Management guidance revenueAnnual Capex ₹250-350 Crore
Normal annual capex including maintenance, R&D, and digital investments will be in the range of ₹250-350 crore.
Management guidance capexData Center MEP Revenue to Double in 3 Years
Data center MEP revenue of ~₹1,000 crore is expected to more than double to ~₹3,000 crore within three years.
Management guidance growthKey Risks
Price Pass-Through Failure
Only 8% of the required 13% price increase has been realized; failure to pass the remaining 5% could compress margins.
high · management_commentaryWar-Related Cost Inflation
Ongoing Middle East conflict may increase plastic and electronic component costs, adding further margin pressure.
high · management_commentaryWeak Summer Demand
If the summer season underperforms, primary sales may lag, making price hikes difficult and inventory levels elevated.
high · analyst_questionDowntrading Risk
Higher prices may push consumers to lower-tier brands or lower-star ratings, impacting Blue Star's market share.
medium · analyst_questionNotable Quotes
We are not celebrating like it was 2024 summer. We have still two three weeks to go to assess how it is going to pan out.
The margins will be under extreme pressure. It is again a function of how rapidly the demand builds up and what is going to happen to the commodity prices.
This year will be about margins rather than inventory.
Frequently Asked Questions
What was Blue Star's revenue in Q4 FY26?
Blue Star reported revenue of ₹4,072 Cr in Q4 FY26, representing a +1.3% change compared to the same quarter last year.
What guidance did Blue Star management give for FY27?
FY27 RAC Segment Margin Target 8-8.5%: Management expects unitary products segment margins to remain in the 8-8.5% range for FY27, assuming successful price pass-through. Q1 FY27 Industry RAC Growth 25-30% YoY: If summer progresses well, management expects Q1 FY27 industry primary sales to grow 25-30% YoY (15% volume, 10% price). Annual Capex ₹250-350 Crore: Normal annual capex including maintenance, R&D, and digital investments will be in the range of ₹250-350 crore. Data Center MEP Revenue to Double in 3 Years: Data center MEP revenue of ~₹1,000 crore is expected to more than double to ~₹3,000 crore within three years.
What are the key risks for Blue Star in FY27?
Key risks include Price Pass-Through Failure — Only 8% of the required 13% price increase has been realized; failure to pass the remaining 5% could compress margins.; War-Related Cost Inflation — Ongoing Middle East conflict may increase plastic and electronic component costs, adding further margin pressure.; Weak Summer Demand — If the summer season underperforms, primary sales may lag, making price hikes difficult and inventory levels elevated.; Downtrading Risk — Higher prices may push consumers to lower-tier brands or lower-star ratings, impacting Blue Star's market share..
Did Blue Star meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Blue Star Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.