Blue Star Q2 FY26: Solid Order Book and Margin Gains Signal Steady Growth

Blue Star Limited delivered a resilient performance in Q2 FY26, reporting a **6.4% YoY rise in revenue to ₹2,422 crore**, supported by strong execution in its Electro-Mechanical Projects and Commercial Air Conditioning Systems business. The company’s **EBITDA grew 22.8% YoY to ₹183 crore**, with margins expanding to **7.6%** from 6.6% last year, highlighting improved operational efficiency and disciplined project selection. The **order book stood at ₹4,840 crore**, driven by healthy inflows from data centers, factories, and commercial buildings, while Blue Star maintained leadership in ducted systems, VRF, and chillers. International business is also gaining traction amid expanding opportunities in the US and Europe. In the **Unitary Products segment**, revenue was impacted by extended monsoon conditions and deferred demand after GST rate changes. However, management expects recovery with new summer launches and deeper penetration across Tier 2 and Tier 3 cities. The **Professional Electronics and Industrial Systems division** continued its steady momentum, supported by industrial demand and BFSI-led data security growth. Blue Star’s balance sheet remains robust, turning **net cash positive with ₹417 crore**, and maintaining a healthy **ROCE of 25.5%**. The company’s ESG practices — including solar-powered manufacturing, IGBC-certified green facilities, and social initiatives — underscore its sustainable growth approach. With a diversified portfolio, expanding product range, and a healthy order pipeline, Blue Star appears well-positioned to benefit from India’s infrastructure and cooling sector growth in FY26. --- **Disclosure:** This article is for informational purposes only and not investment advice. **Follow:** For more honest and insightful financial updates, follow **@AFS Trading Edge**