• EBITDA and margins: Q4 EBITDA grew 17% to ₹326 crore with margins improving from 7% to 8% due to price hikes and deferred operating costs. Margins are projected to remain between 8% and 8.5% in FY27, though cost pressures and currency fluctuations may necessitate further price increases in Q2.
• Data center contribution: Data center MEP contracting currently generates roughly 8% of Blue Star's ₹12,000 crore revenue, with cooling equipment sales poised to expand through new product rollouts in FY27 and FY28. Management expects data centers to account for 15% to 16% of total revenue within two years.
• Input cost inflation: Combined forex, commodity, and Middle East conflict pressures could drive total cost inflation up to 14%–15% in Q2. Blue Star is relying on value engineering, manufacturing adjustments, and cost-takeout measures over the next two to three months to avoid passing the full increase to consumers.
• Market share expansion: Growth is increasingly driven by Tier 3 to Tier 6 cities, where Blue Star aims to expand its room AC market share from 14.25% to 14.75% in FY27. The company projects overall AC and refrigeration product revenue to deliver a 15% to 20% CAGR over the next two to three years.
• R&D and efficiency: R&D expenditure has risen to 3% of revenue to engineer solutions ahead of the January 1, 2028 energy table revision, which will demand a 10% efficiency boost. The company is optimizing designs to restrict the resulting cost increase to 3%–4% while launching central air conditioning products for premium residences in June–July.