• Q4 margin drivers: Q4 revenue was flat at ₹4,072 crore while EBITDA rose 17% to ₹326 crore and margins expanded to 8%, driven by price hikes and deferred operating costs. Management projects FY27 margins to stay between 8% and 8.5%, with possible price increases in Q2 to counter commodity and currency pressures.
• Data center expansion: Data center MEP contracting accounted for roughly 8% of the company's ₹12,000 crore revenue last year. With new cooling products launching between October and December, the data center business is projected to contribute 15% to 16% of total revenue within two years.
• Input cost inflation: Pre-war commodity and foreign exchange pressures raised costs by 8% through March 31, with Middle East conflict headwinds expected to add another 5% to 6% in Q2 for a total increase of up to 14% to 15%. Blue Star plans to mitigate these cost pressures through engineering and manufacturing cost take-outs rather than passing the full burden to consumers.
• Market share targets: Room AC market share reached 14.25% last year, driven by rising demand in Tier 3 to Tier 6 cities, with a target to reach 14.75% in FY27. Strong adoption in smaller towns and retail expansion in refrigeration products support an expected overall CAGR of 15% to 20% over the next two to three years.