Blue Star shares gain as company unveils Rs 400-cr capacity expansion plan

Blue Star plans to invest Rs 400 crore in FY26 to increase its production capacity across room air conditioners, commercial refrigeration and commercial air conditioning segments

Blue Star share price: Blue Star shares were in demand among investors on Friday's trading session. Blue Star share price climbed 2.64 per cent in early trades on Friday to hit an intraday high of Rs 2,201.55.

  However, at 10:55 AM, Blue Star shares were off the day's high, and trading lower by 0.86 per cent, at Rs 2,126, on the BSE. Shares of the company were 12.8 per cent away from its 52-week high of Rs 2,419.95, hit on January 6, 2025. The market capitalisation of the company stood at Rs 43,704.45 crore as of writing this report.  

 

  Moreover, Blue Star stock is a part of the BSE 500 index that was trading higher by 0.26 per cent, at 11 AM. 

  Shares of the air conditioning solutions company climbed after the company's Managing Director B Thiagarajan stated that Blue Star plans to invest Rs 400 crore in financial year 2025-26 to increase its production capacity across segments including room air conditioners, commercial refrigeration, and commercial air conditioning segments, according to reports. READ MORE

  Blue Star plans to invest Rs 200 crore in its Sri City plant to increase the facility's room air conditioner production capacity to 12 lakh units, from the current 8.5 lakh units per annum, in the third phase of capacity expansion.

  READ: K&R Rail gains 4% on inking MoU with Indian Port Rail; check details here  Further, the company plans to deploy Rs 150 crore for capacity expansion of commecial air conditioners at its Himachal Pradesh plant.

  The company's Managing Director B Thiagarajan, said: "We are aiming at 20 per cent growth in FY'26. We estimate to end the current fiscal with 25 per cent growth backed by robust growth seen in the room air-conditioner business".

  Blue Star expects to raise its market share in key segments driven by innovation, quick delivery and growth in quick commerce and QSR segments. The company's in-room AC market share is expected to expand from 13.75 per cent to 13.8 per cent by the end of this fiscal and 14.25 per cent in FY26, while in the commercial refrigeration segment, the company is eyeing a rise in market share from 30 per cent to 33 per cent.

 

Blue Star Q3 results

  The company's carried-forward order book hit a record high of Rs 6,809.99 crore as of December 31, 2024, rising 12.8 per cent year-on-year (Y-o-Y), compared to Rs 6,038.53 crore as of December 31, 2023.

  For the October to December 2024 quarter, Blue Star reported a 32 per cent jump in consolidated net profit at Rs 132.57 crore, compared to Rs 100.39 crore in the year ago period. 

  READ: Smallcap stock surges 56% in less than a month; zooms over 3200% in 5 years  The company's revenues rose 25.3 per cent Y-o-Y to Rs 2,807.36 crore for the third quarter, compared to Rs 2,241.19  crore in the year-ago period.  

  Moreover, revenue from the electro-mechanical projects and commercial air conditioning systems segment grew by 32.2 per cent to Rs 1,562.41 crore during the quarter, compared to Rs 1,182.3 crore in the same quarter of the previous year. Meanwhile, unitary products revenue grew by 21.9 per cent to Rs 1,164.36 crore in Q3FY25, compared to Rs 955.38 crore in Q3FY24.