• Margin recovery plans: Elevated input costs continue to pressure margins in Q2 after unitary cooling margins dropped to 2.9% in Q1. Blue Star expects product redesigns and alternate materials to deliver a 200-basis-point margin improvement starting in Q4, aiming for a full-year margin of around 6.5%.
• AC industry growth: The room AC market is projected to grow over 25% this fiscal year to 17.5–18 million units and exceed 30 million units by 2030. Over 80% of current demand is driven by first-time buyers, with entry-level products accounting for more than 75% of sales.
• Data center MEP: Blue Star projects ₹3,000 crore in order inflows and ₹1,500 crore in revenue from data center electromechanical projects this financial year. By FY29, MEP data center revenue is expected to reach ₹4,000 crore, accounting for roughly 20% of the company's total revenue.
• Liquid cooling expansion: Blue Star is actively pursuing technology partnerships or collaborations with global players to enter India's liquid cooling market, which is projected to expand from ₹500 crore to ₹3,000 crore by FY29. In conventional chillers, the company targets growing its revenue from ₹250 crore this year to ₹500 crore in FY29.