Voltas vs. Blue Star: Which consumer durable stock performed better in Q3?

Synopsis:- Two leading cooling solution players posted strong sequential revenue growth of 31% and 21% in Q3FY26, though profits declined 36% and 39% year-on-year. Order book remained healthy at ₹6,898 crore, while room AC demand and project momentum supported recovery despite margin pressures.

India’s leading cooling solution providers, Voltas and Blue Star, delivered mixed performances in Q3 FY26 amid shifting demand trends. While sequential revenue growth remained strong for both companies, profitability pressures persisted on a year-on-year basis. Segment-wise momentum in room air conditioners and project businesses, along with evolving market conditions, shaped their quarterly outcomes.

Voltas  

Voltas Ltd, a Tata Group company, is one of India’s leading air conditioning and engineering solutions providers. The company operates across room air conditioners, commercial cooling, and electro-mechanical projects. With a strong domestic presence and expanding international footprint, Voltas focuses on innovation, energy efficiency, and wide distribution reach.

With a market capitalisation of Rs 43,977.89 crore, the shares were trading at Rs 431.30 per share, decreasing around 1.33 percent as compared to the previous closing price.

On a year-on-year basis, revenue slipped marginally by 1%, declining from  Rs 3,105 crore to  Rs 3,071 crore, indicating relatively stable topline performance despite a challenging environment. However, on a sequential basis, revenue surged 31% from  Rs 2,347 crore, reflecting strong recovery in demand and improved execution during the quarter.

Profitability showed mixed trends. Net profit fell sharply by 36% year-on-year from  Rs 131 crore to  Rs 84 crore, suggesting margin pressure compared to last year. However, on a quarter-on-quarter basis, profit jumped 162% from  Rs 32 crore to  Rs 84 crore, highlighting significant operational improvement and better cost management sequentially.

In Q3 FY26, Unitary Cooling Products led performance with  Rs 1,924 crore revenue and  Rs 73 crore results, highlighting strong core demand. Electro-Mechanical Projects delivered robust profitability with  Rs 82 crore results on  Rs 974 crore revenue, showing margin strength. Engineering Products remained smaller but efficient, posting  Rs 157 crore revenue and  Rs 37 crore results, reflecting steady execution.

Management stayed firmly focused on strengthening market leadership in the cooling segment, sharpening its competitive edge through disciplined network expansion, precise micro-level market targeting, stronger channel readiness, and more impactful retail and digital activation across priority markets.

Commenting on the performance, Mr Mukundan Menon C P, Managing Director, Voltas Limited, said, “In Q3, the Room Air Conditioner business remained the anchor of our overall performance, navigating inherent seasonality and the impact of a shorter second summer through stronger channel momentum, improved product mix, and the benefit of the GST rate reduction

Blue Star Ltd  

Blue Star Ltd is a prominent Indian air conditioning and commercial refrigeration company with decades of industry experience. It offers room ACs, commercial air conditioning systems, and refrigeration solutions. Known for its strong brand and project expertise, the company serves residential, commercial, and industrial customers across India and overseas markets.

With a market capitalisation of Rs 37,212.16 crore, the shares were trading at Rs 1,809.80 per share, increasing around 4.54 percent as compared to the previous closing price.

The company reported revenue growth of 4% year-on-year, rising from  Rs 2,807 crore to  Rs 2,925 crore. On a sequential basis, revenue increased sharply by 21% from  Rs 2,422 crore, reflecting improved demand and stronger execution during the quarter. The sequential jump indicates better momentum compared to the previous quarter’s relatively softer performance.

However, profitability remained under pressure. Net profit declined 39% year-on-year from  Rs 132 crore to  Rs 81 crore. On a quarter-on-quarter basis, profit fell 18% from  Rs 99 crore to  Rs 81 crore. The decline suggests margin compression, possibly due to higher input costs, competitive pricing, or increased operating expenses during the period.

Blue Star’s carried-forward order book stood at  Rs 6,898.74 crore as of December 31, 2025, slightly higher than  Rs 6,810 crore a year ago, indicating stable order inflows and sustained project visibility.

The Electro-Mechanical Projects, Commercial Air Conditioning Systems, Service and International Business segment reported revenue growth of 8.6% to  Rs 1,696.21 crore in Q3FY26, though margins softened to 6.8% from 7.6% year-on-year. While enquiry momentum remained healthy across buildings, data centres and factories, some order finalisations and deliveries shifted to the next quarter, impacting margins.

The Unitary Products segment posted revenue of  Rs 1,154.22 crore, largely stable year-on-year, with margins improving to 8.5%. Growth in Room Air Conditioners was supported by pre-buying ahead of new energy-label norms, while Commercial Refrigeration remained muted. Meanwhile, Professional Electronics revenue declined 7.1%, though margins improved to 9.1% despite Med-Tech policy uncertainties.

Vir S. Advani highlights that despite a challenging first nine months of FY26, market revival signs are visible. Blue Star expects Q4 FY26 to be strong across Room ACs, Commercial Air Conditioning, and Refrigeration. The company is investing in distribution, R&D, manufacturing, digitalisation, and branding, alongside cost optimisation, to drive sustainable growth into FY27.

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