Blue Star Q3 Profit Plunges 39%, Misses Estimates Despite Margin Beat

• Blue Star's consolidated net profit for Q3 FY26 dropped 39% YoY to ₹80.55 crore, significantly missing Street estimates of ₹123 crore.
• The profit decline was primarily due to a one-time exceptional charge of ₹56.35 crore for gratuity and leave encashment liability, following new Labour Codes.
• Revenue from operations increased 4.2% YoY to ₹2,925.31 crore but fell short of poll projections, indicating softer execution.
• Operating profit (EBITDA) rose 5.1% to ₹220.8 crore, and operating margin remained flat at 7.5%, both exceeding Street expectations.
• Management anticipates a strong Q4 FY26, especially in room ACs and commercial cooling, driven by early signs of demand revival.

Why It Matters: Blue Star's Q3 profit fell sharply due to an exceptional charge, though operational performance remained steady.