Analysts/Institutional Investor Meet/Con. Call Updates

August 13, 2026 BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 BSE Scrip Code: 500067 NSE Symbol: BLUESTARCO Dear Sir/Madam, Sub: Intimation under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Listing Regulations’) - Earnings Call Transcript for the First Quarter ended on June 30, 2026 In furtherance to our letter dated August 7, 2026, whereby the Company had submitted the link to the audio recording of the Earnings Call held post announcement of the Financial Results for the First Quarter ended on June 30, 2026 and pursuant to Regulation 30(6) read with Part A of Schedule Ill of the Listing Regulations, we are enclosing herewith the Earnings Call Transcript of the said Earnings Call, for your information and records. This intimation is also being made available on the website of the Company at www.bluestarindia.com Kindly take the same on record. Thanking you, Yours faithfully, For Blue Star Limited Rajesh Parte Company Secretary & Compliance Officer Encl: a/a Registered Office: Kasturi Buildings, Mohan T Advani Chowk, Jamshedji Tata Road, Mum bai 400 020, India. T: +91 22 6665 4000 CIN: L 28920MH1949PLC 006870 “Blue Star Limited Q1 FY '27 Earnings Conference Call” August 07, 2026 MANAGEMENT: MR. B. THIAGARAJAN – MANAGING DIRECTOR – BLUE STAR LIMITED MR. NIKHIL SOHONI – GROUP CHIEF FINANCIAL OFFICER – BLUE STAR LIMITED Blue Star Limited August 07, 2026 Moderator: Ladies and gentlemen, good day and welcome to Blue Star Limited Q1 FY27 Earnings Conference Call. We have with us today from the management, Mr. B. Thiagarajan, Managing Director, Blue Star Limited and Mr. Nikhil Sohoni, Group Chief Financial Officer, Blue Star Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. B. Thiagarajan. Thank you and over to you, sir. B. Thiagarajan: Thank you. Good morning, ladies and gentlemen. We are here to share with you the highlights of Q1 FY27 financial results, which were approved by our Board yesterday. Thank you for joining this call. Before I hand it over to Mr. Nikhil Sohoni, I wanted to point out a few things. The first one is you might have seen the results, particularly the margins for segment II would have been disappointing to you. We will clarify the facts behind these numbers. Broadly, we have fallen short of the expectations, but the fundamentals are strong. We expect to bounce back in the next 9 months, you need not to worry, I will provide that outlook as well. If you specifically look at the segment I, you would have seen that we have grown more than 15.1% in terms of revenue and the margins were down by around 112 basis points, primarily due to input costs on commodity prices, the exchange rate. That is the impact that's going to be further more in segment II as well. In segment II, the revenue growth you will be seeing is around 13%, a significant drop in the EBIT margins by around 300 basis points from 5.8% in Q1FY26 to 2.9%. If you look at the Jan to June period for segment II, the EBIT margin has been more or less flat, that is 7.3% to around 7.1%, and the drop is not significant for the H1 part of it. In terms of the market share some of you would have seen the GFK reports. In April, we lost around 50 basis points for Room Air Conditioners, in May we gained around 10 basis points and in June, we gained around 50 basis points. This is where the full story lies about the numbers. We entered the financial year with the hope that we will be able to pass on the commodity price and other input cost increase to the consumers. The total impact that we wanted to pass on was around 13%, what we could pass on was only 5%. In April, the summer set in much later. You will recall that it was around the April 20 in the May Investor Call itself, I had pointed Page 2 of 20 Blue Star Limited August 07, 2026 out that it was a late summer. We hope that in the last week of April, when the summer season picks up, we will be able to manage our margins and pass on the entire cost increase, which didn't happen. We lost the market share, and that's why 50 basis points in tertiary sales was the erosion in terms of market share. We embarked on corrections from the second half of May itself and we gained market share by10 basis points and in June additional 50 basis points. Q1 as a whole in the secondary tertiary sales our market share erosion is just 30 basis points, which is not significant. Now we closed the year with around 14.25%,we will be marginally lower than 14% market share. This market share management has happened basically by maintaining the prices in line with what is prevailing in the market and incurring huge expenditure in terms of consumer schemes because we wanted the tertiary sales volume to go down because at some point of a time, primary sales will have to begin. The segment II revenue growth, one may wonder, while GFK is reporting a decent growth, why the revenue growth is this. GFK is a secondary tertiary data, which more or less correlates with the primary sales data. The real problem is the Commercial Refrigeration business, which has degrown by around 15% and it is primarily due to deep freezers and the cold rooms, specifically the ice cream as well as the frozen food and the quick service business segment did not do well. On the whole, segment II revenue drop is appearing to be 13% because of commercial refrigeration. The bottom line is as follows, that we took a hit in the operating margin in order to more or less maintain our market share, still the, the commodity prices are going up. Our expectation is that this should correct over the rest of the year because at some point of a time, we expect market prices also to go up. Now the outlook, our estimate is that the revival will happen sometime end of August to September as the festival season begins. The corrections are going to happen significantly in Q3 as well as Q4 because we are taking several actions, including rejigging our product portfolio, that exercise has begun. As of now, we have a visibility to close the year with an operating margin of over 6.5% for segment II in financial year FY27. As far as segment I is concerned, the margin outlook remains the same, 6.5% to 7%. Our big focus is to manage between the market share and the margins. In Q1, which is an aberration, we could manage the tertiary market share more or less at the same level as we were last year. We took a hit in the margin, now the focus will have to shift to rejigging the product portfolio. Otherwise, the fundamentals are strong, and we look forward to closing the year on a higher note. The two significant things that have happened or silver linings are: Number one, our continued leadership position in the data center MEP projects segment. We have close to Page 3 of 20 Blue Star Limited August 07, 2026 around RS.1,500 Crore of order inflow from this segment alone, taking the total pending order book or the carried forward order book as on 30th June 2026 to over RS.7,700 Crore. We expect the order inflow for the full financial year from data center MEP projects to be around Rs.3,000 Crore and in revenue terms, it should translate to close to around Rs 1,400 Crore. As I had stated, the data center MEP projects will constitute close to 20% of our revenue at around RS.4,000 Crore coming from the data center MEP projects alone by FY29. So that segment is the one which is performing exceedingly well. The second highlight will be the net cash position. [Showing first 8,000 characters — download PDF for full document]