Blue Star Q4 profit surges 20.6% on strong demand, recommends ₹9 final dividend

Blue Star Ltd, a leading Indian air conditioning and commercial refrigeration company, reported a 20.6% rise in fourth-quarter net profit on Wednesday, driven by robust demand for cooling solutions. The company’s consolidated net profit reached ₹193.6 crore for the quarter ended March 31, up from ₹160.5 crore in the same period last year.

Revenue from operations climbed 20.8% year-on-year to ₹4,019 crore, reflecting strong growth in both residential and commercial segments, fueled by rising temperatures and increasing consumer spending. The company’s EBITDA grew 15.5% to ₹279.5 crore, though its EBITDA margin slightly narrowed to 7% from 7.3% a year ago, impacted by elevated input costs and competitive pricing pressures.

Blue Star, a key player in India’s cooling and refrigeration market, attributed its strong performance to a diversified product portfolio and an expanding distribution network. The company also benefited from government initiatives promoting energy-efficient appliances, which spurred demand for its inverter-based air conditioners. However, supply chain constraints and rising raw material costs presented challenges during the quarter.

The board recommended a final dividend of ₹9 per share, signaling confidence in the company’s financial health and growth outlook. Blue Star’s stock has performed steadily, reflecting investor optimism about India’s expanding consumer durables market. Analysts expect the company to sustain its growth momentum, supported by urbanization and increasing air conditioning penetration in tier-2 and tier-3 cities.

India’s air conditioning market is poised for significant growth, driven by rising disposable incomes and climate change-induced demand. Blue Star plans to capitalize on these trends with new product launches and enhanced manufacturing capabilities, positioning itself as a leader in the evolving market.

Shares of Blue Star ended down 0.7% ahead of the earnings announcement.