In second quarter of FY27, the extended summer season resulted in robust demand for Room ACs and it helped the company to post a strong revenue growth. However, margins were under pressure across the businesses due to continued escalation in material cost and our inability to fully pass on the same, the company said in a statement.
During the quarter, Electro-Mechanical Projects business order inflows are mainly from Data Centers, while the enquiry inflows are good from Factories as well. Blue Stat expects significant growth in order inflows in the coming months.
Many more orders for Data Center MEP projects are expected to be finalised in the coming months. There is revival of demand for Commercial Air Conditioning and Refrigeration products, the company said.
The monsoon shortfall, consequent drop in farm income and interest rate hike can have potential impact on demand. On the other hand, the conclusion of the US trade deal and possible resolution of West Asia crisis can be tailwinds, it said.
“While we remain optimistic about the revenue growth momentum in H2FY27, our thrust will be on improving the margins through price revisions and product cost optimization,” Blue Star said.
“We remain confident of sustaining our revenue growth momentum in H2FY27, with a clear focus on strengthening profitability. Our priorities will be to drive calibrated price revisions, accelerate product cost optimisation and improve operational efficiencies to enhance margins,” Vir S Advani, Chairman & Managing Director, Blue Star said.
