Shares of Blue Star declined over 6% today to Rs. 1,713.90, extending a five-day fall of nearly 9%, after the company reported muted Q2FY26 results and flagged continued weakness in its air conditioner segment. The stock opened at Rs. 1,799 and hit an intraday low of Rs. 1,713.90, with a VWAP of Rs. 1,732.47. Its market capitalisation stood at Rs. 36,372 crore.

For Q2FY26, Blue Star posted a 3% (YoY) rise in consolidated net profit at Rs. 99 crore, while revenue from operations grew 6% at Rs. 2,422 crore. The management attributed the modest growth to a slowdown in secondary sales within the room air conditioner segment, which remained impacted by prolonged monsoon rains and lower temperatures that delayed channel offtake.

The company further highlighted that the GST rate rationalisation in September prompted some buyers to defer purchases, dampening near-term sales momentum. The company is optimistic that GST rate benefits will aid demand in Q3FY26, though unseasonal rains in parts of the country remain a concern. It added that while order inflows in Electro-Mechanical Projects have moderated, a revival in commercial air conditioning and refrigeration businesses is expected as infrastructure spending picks up.

Market analysts noted that the company’s near-term volumes may remain constrained by weather-linked demand fluctuations, but structural drivers such as GST-led affordability, residential urbanisation, and government-led infrastructure expansion remain supportive of medium-term growth.

The stock has fallen about 4% over the past month but remains up 7% over six months, reflecting resilience despite cyclical headwinds.