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Blue Star Limited reported Q1 FY27 results for the June 2026 quarter on 6 August. Q1 FY27 numbers (consolidated): Revenue: Rs 3,378 crore, up 13.3% YoY EBITDA: Rs 175 crore, down 13% YoY; margin 5.2% vs 6.7%, missed the 7% estimate PAT: Rs 102.5 crore, down 15.3% YoY; EPS Rs 4.99 Seg 1 EMP and commercial AC: revenue Rs 1,625 crore, up 15.1%; EBIT margin 6.8% vs 7.9% Seg 2 Unitary Products: revenue Rs 1,689 crore, up 12.7%; EBIT margin 2.9% vs 5.8% Order book: Rs 7,764 crore, up 13.5%; net cash Rs 900 crore Input costs rose about 13% but only 5% was passed through in room AC pricing, compressing the unitary margin 290 bps. Data centre MEP inflow: Rs 1,500 crore in the quarter alone. Management targets UCP margins above 6.5% for the full year; data centre revenue guided at Rs 4,000 crore by FY29, about 20% of total. Blue Star [][***** shares closed at Rs 1,430.44 (9 Sep 2026, 03:54 PM IST), down 26 percent over one year, 29 percent below the Rs 2,020 high and near the Rs 1,406 low. P/E 57.8; net cash Rs 900 crore. My view: the miss is real, the cause is temporary, the data centre pivot is the reason to stay. Room AC margins recover when cost pass-through catches up in Q3; at 2.9% unitary EBIT the business is compressed, not broken. At 57.8x, 29 percent below the high and near the 52-week low, with Rs 900 crore net cash, this is among the most constructive entries this series has offered. Fresh money accumulates here; the Q3 margin print is the gate. Levels: Rs 1,406 to 1,450 the floor; Rs 1,600 to 1,650 the first reclaim; Rs 2,020 the high. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.