• Margin recovery target: Blue Star passed on only 5% of a planned 13% price hike due to commodity inflation and high marketplace inventory, causing margins to contract by 300 bps year-on-year. Management expects operating margins to recover to 6.5–6.75% by Q4, with plans to push margins above 7%.
• Data center expansion: The data center business has accumulated nearly ₹1,700 crore in orders out of a total order book of ₹7,700 crore, with order inflows expected to reach ₹3,000 crore. Blue Star is diverting resources to this segment and aims to derive roughly 20% of its revenue from it by 2029.
• Room AC outlook: Following a brief summer window where demand collapsed in early June, the room air conditioner segment is projected to remain muted through July and August. Management expects sales and margin recovery to pick up around September, starting with the festive season.
• Cash and inventory: Blue Star maintained a comfortable inventory position, reducing working capital and increasing its net cash balance to ₹900 crore compared to ₹570 crore last year.