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.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered3Evaded / deflected11Questions audited
Partial answer
High priority
Strategy on ad spend and margins in competitive RAC market.
Asked by Natasha Jen, Philip Capital
Management gave a range for ad spend but did not directly answer whether margins are being protected or if volumes would be impacted.
no specific margin target givenqualitative only
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Question
UCP RAC being a hyperco competitive market requires constant ad and promotional spend. So could you throw some color in terms of your strategy that are you now protecting margins or will we see elevated ad spend later in the year and if you're protecting margins will that impact our volumes?
Management (likely CEO or CFO)
There is no intent to stop our investments which is in the order of around 1 and a half% to 2% of our products business revenue. That will continue depending on the demand.
Partial answer
High priority
Near-term demand outlook given erratic weather and channel inventory.
Asked by Natasha Jen, Philip Capital
Management acknowledged the question but gave no specific near-term outlook, only qualitative comments.
no quantitative guidancedeferred to future weeks
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Question
April first 15 days was pretty much flat because of rains. second 15 days only secondaries have picked up it seems primary either the channel is pretty much stopped in south... could you tell us how are you reading near-term given that season will probably end towards the end of June?
Management
April 13th the summer season had settled and it has taken off well from April 13th... we are happy that the summer season has set in. 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.
Evasive
Medium priority
Downtrading due to cost increases and lower tier brands gaining share.
Asked by Natasha Jen, Philip Capital
Management did not address downtrading or lower tier brands at all, only linked to demand.
no direct answerdeflected to demand dependency
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Question
Given cost has increased so much are you seeing a very sharp downtrading happening because what we seeing is lower tier brands are gaining market share at the cost of all higher ones?
Management
The third question is part and parcel of that the function of the car increased cost to be passed on is again dependent on the demand in the market.
Answered
High priority
Quantum of price increase taken and needed to cover cost inflation.
Asked by Ravi Swaminatan, Aendas Park
Management provided specific percentages for price increases taken and remaining.
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Question
How much amount of price increase you would have taken since January 1st including the B nom change and how much more needs to be taken to compensate for the dometry price increase?
Management
It is around 5% is the price increase on account of energy level change alone... subsequent to that till the April beginning it will be around 8% for the raw material price increase... so there would have it should have been around 13% price increase that is warranted... we would have taken till Now... up to 8% out of 13 price increase. Five more percentage of increase will happen as the April May sorry May June buildings are happening.
Answered
High priority
Will 13% price increase fully cover cost inflation and protect margins?
Asked by Ravi Swaminatan, Aendas Park
Management gave a clear affirmative answer.
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Question
Is it completely enough to cover the cost inflation which is there and protect the level margins for the cooling product segment?
Management
13% will cover the desired margin levels.
Answered
Medium priority
Margin impact from raw material price increases on fixed-price project contracts.
Asked by Ravi Swaminatan, Aendas Park
Management clearly stated no fixed-price contracts and no current impact.
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Question
With respect to the project business also in terms of raw material prices going up there some of the costs might be some of the projects might be fixed price contract. How to think about any margin impact that can happen in the next 12 months?
Management
I don't think we have any fixed price for rarely we will be it's all covers for the price variation. Having said that if you have delayed or the delay is attributable to us during the delayed period price variation will not be applicable. I do not think we have any kind of an impact at the moment.
Evasive
Medium priority
One-year and three-year outlook for international business, new customer approvals, revenue potential.
Asked by Rahul Agarwal, Ikitai Asset
Management gave no quantitative outlook, only qualitative and uncertain statements.
no specific numbersdeferred to uncertainties
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Question
On the international business, if you could just provide some color on what's the one-year outlook and a three-year outlook in terms of new customer approvals and the growth you see the revenue potential there.
Management
It is a wrong time to be talking about long-term... many trade deals are they are taking off. They are in the verge of signing and huge uncertainties provide. All that I can say is that we have approval for quite a few of products with quite a few of customers... In about three years depending on how the global economy is going to pan out. We should be beginning to grow that business significantly.
Answered
High priority
Growth outlook for fiscal 27 on commercial AC, commercial ref, and projects.
Asked by Rahul Agarwal, Ikitai Asset
Management provided a specific growth range for commercial AC and projects.
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Question
Qualitatively if you could talk about the growth outlook for fiscal 27 on commercial AC commercial ref and projects.
Management
The outlook continues to be around 8 to 10% kind of growth and the growth is today driven predominantly by manufacturing sector and in case of projects it is driven by manufacturing as well as the data center.
Deflected
Low priority
Explanation for change in payable number on balance sheet.
Asked by Rahul Agarwal, Ikitai Asset
Management answered about capex instead of explaining the payable change.
did not address payablesanswered a different question about capex
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Question
On the balance sheet. Just wanted to know what's changed for the payable number. I'm assuming that there is bit more inventory stocking and hence the creditors actually look like maybe you paid in advance and hence they drop down considerably.
Management (likely CFO)
The annual capex can be anywhere in the region of around 250 to 350 crores. So that's the normal spend that we have.
Partial answer
High priority
Outlook for AC industry and Blue Star for FY27 given favorable base.
Asked by Aneruta Zoshi, ICAC Securities
Management gave long-term industry outlook but not specific FY27 guidance for Blue Star.
no specific FY27 outlooklong-term view only
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Question
If you can share any outlook for the air conditioner industry as well as the blue star for FI27 considering there was a extremely favorable base of FI26.
Management
The room air conditioned industry given the penetration it will be the fastest growing market in the world and I still maintain by 2030 it should more than double the cagr at 18 to 20% should happen... FI26 let us say it is going to be 17.5 million units I will not be surprised many things happen and it ends up with 40 to 50 million units by FI30.
Evasive
High priority
Whether trade schemes like free installation have been discontinued and margin outlook.
Asked by Aneruta Zoshi, ICAC Securities
Management did not address trade schemes and gave no margin outlook, citing lack of visibility.
no answer on trade schemesno margin outlook given
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Question
Whether the excess trade schemes like free installation or higher discounts for the trade. So whether all of them have been discontinued. So at the same time commodity prices have increased. So considering all these things what will be the outlook for margins as well.
Management
The margins outlook given the commodity prices it is a wrong time to predict anything because when you're in adverse situation you swing to the other extreme. But it is bad you don't have any visibility at all.
Answered
Medium priority
Plans to enter other white goods or durables beyond AC.
Asked by Aneruta Zoshi, ICAC Securities
Management clearly stated no plans to enter white goods.
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Question
Is there any potential to enter other products either white goods or durables like washing machines, refrigerators or any other matter?
Management
We will we have as on date foreseeable future we don't have any such plans at all. We will be focused on air conditioning and refrigeration.