Blue Star Reports 2.8% Profit Growth in Q2 FY26 Amidst GST Impact and Monsoon Delays

Blue Star Limited reported a net profit of ₹98.78 crore for the second quarter of fiscal year 2026, marking a 2.8% increase from ₹96.06 crore in the same period last year. Revenue from operations saw a 9.3% year-on-year rise, reaching ₹2,422.37 crore from ₹2,215.96 crore. The company cited extended monsoon rains and temporary sales disruptions following the Goods and Services Tax (GST) rate rationalisation for compressor-based cooling products as factors impacting performance. The GST Council had reduced the tax rate on air conditioners and dishwashers from 28% to 18%, effective September 22, 2025. The Room AC segment experienced a seasonal slowdown and deferred demand post GST announcement. Conversely, the Electro-Mechanical Projects and Commercial Air Conditioning Systems segment demonstrated strong growth, with revenue increasing by 16.5% to ₹1,664.21 crore, driven by enquiries from buildings, data centres, and factories. Revenue from unitary products, including the room AC business, declined by 9.5% to ₹693.81 crore. Total expenses rose 6.3% to ₹2,299.22 crore. For the first half of FY26, consolidated revenue grew 5.1% to ₹5,404.62 crore. Chairman and Managing Director Vir S Advani expressed confidence in the company's diversified portfolio for sustained growth, expecting the GST rate cut to stimulate consumer demand for room ACs in the coming months. He also anticipates a revival in commercial air conditioning demand. Impact This news directly impacts Blue Star's stock performance and investor sentiment within the AC and building solutions sector in India. The GST rate cut announcement is a key factor that could boost future sales of air conditioners. The company's project segment performance indicates robust demand in industrial and commercial construction. The moderate profit growth signals resilience despite challenges. Rating: 6/10. Terms * Consolidated Net Profit: Total profit of a company and its subsidiaries after all expenses and taxes. * Revenue from Operations: Total income generated from the company's primary business activities. * GST: Goods and Services Tax, a consumption tax levied on the supply of goods and services. * FY26: Fiscal Year 2025-2026. * Unitary Products: Products sold directly to consumers, like room air conditioners. * Electro-Mechanical Projects: Projects involving the installation of electrical and mechanical systems in buildings and infrastructure. * Commercial Air Conditioning Systems: Air conditioning solutions for businesses and large spaces.