Blue Star has reported a 21% increase in its net profit for the fourth quarter of the financial year 2025 (FY25). The company’s revenue from operations grew by 20.77%, reaching ₹4,018.96 crore, compared to ₹3,327.77 crore in the same period last year. This growth was driven by higher demand in both the residential and commercial sectors, thanks to hotter temperatures and increased consumer spending.
The company’s operating profit for the quarter (before other income) rose by 15.5%, reaching ₹279.40 crore. The operating profit margin was 7% of revenue, slightly lower than the 7.3% margin in Q4 of FY24.
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Other income, which includes earnings from the company’s treasury, increased to ₹23.99 crore, up from ₹12.39 crore in Q4 FY24. This increase was mainly due to better management of working capital.
The company’s tax expense in the fourth quarter was ₹54.82 crore, slightly higher than ₹54.42 crore in Q4 FY24.
Profit before exceptional items grew by 16.2%, reaching ₹248.82 crore, compared to ₹214.13 crore last year.
Blue Star’s order book as of March 2025 stood at ₹6,263.36 crore, which is a 9.9% increase from the previous year’s ₹5,697.63 crore. The company finished the quarter with ₹640 crore in net cash, up from ₹456 crore last year.
Revenue from the company’s electromechanical projects and commercial air conditioning systems grew by 30.62%, reaching ₹1,968.17 crore. The revenue from unitary products, such as room air conditioners, increased by 14.71%, totaling ₹1,960.23 crore.
However, the revenue from the professional electronics and industrial systems segment dropped by 19.19%, mainly due to slower demand in the data security business.
Blue Star reported a strong overall performance in FY25, particularly in the room air conditioner business, which saw high demand due to the hot summer and the proactive stocking by dealers to avoid potential supply chain issues.
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Looking ahead, Blue Star’s vice chairman and managing director, Vir S. Advani, mentioned that the company expects continued growth, especially with strong demand for air conditioners and a solid order book for its commercial products. While there were some challenges in April due to milder weather, the company expects demand to pick up in May and June. The company is also monitoring global challenges like supply chain disruptions and rising commodity prices.
The company’s board has recommended a ₹9 dividend per share for FY25.
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Blue Star is an Indian multinational company that specializes in air conditioning, commercial refrigeration, and MEP (mechanical, electrical, plumbing, and firefighting) solutions.
Following the announcement, Blue Star’s stock fell 1.49% to ₹1,655 on the Bombay Stock Exchange (BSE).
