AC sales to grow 15% in FY27: Blue Star MD
Blue Star has hiked AC prices by 8% in 2026 after the new bureau of energy efficiency (BEE) norms came into effect from January. The company will undertake another 5% price increase in April
- Apr 8, 2026,
- Updated Apr 8, 2026 2:29 PM IST
Air conditioner sales volumes are expected to grow 15% in the financial year 2026-27 (FY27), even as the industry awaits the onset of summer in north India that has been delayed due to a western disturbance, according to B Thiagarajan, Managing Director, Blue Star Ltd.
“We expect 25% revenue growth and 15% volume growth in air conditioners for FY27,” Thiagarajan told BT.
This comes after room air conditioner volumes declined 5% decline in FY26, mainly due to an unexpectedly short summer.
Blue Star has hiked AC prices by 8% in 2026 after the new Bureau of Energy Efficiency (BEE) norms came into effect from January. The company will undertake another 5% price increase in April, depending on the onset of the summer season, Thiagarajan said. “It’s going to be difficult. You can’t pass on a huge price increase unless the demand is robust. The only silver lining is that there is 10% reduction in tax after the GST rate rationalisation last year,” he added.
The Blue Star MD expects a third price increase this year, ahead of the festive season, as costs of key raw materials like copper and plastics have gone up. “The third price increase will happen in the festival season because all raw materials have been bought for the summer season,” Thiagarajan said.
The global air conditioning market is at 220 million units, whereas India sells about 14 million units. India’s AC market is growing at a CAGR of 19% and is expected to cross 30 million units by 2030, driven by strong first-time adoption in low-penetration markets as well as replacement demand in more mature urban centres, according to industry estimates.
Blue Star, which currently has a market share of 14.3% in air conditioners, is eyeing 15% share in FY27. “Our immediate goal is to reach 15% market share by FY27,” says Thiagarajan.
To achieve this milestone, the company has launched 125 new room air conditioner models ahead of the summer season. The portfolio includes energy-efficient ACs, heavy-duty ACs, and Hot and Cold ACs, among others. E-commerce accounts for about 10% of its sales, while 44% of sales come from large-format organised retail.
All models comply with the new Bureau of Energy Efficiency (BEE) standards that came into effect on January 1, 2026.
Blue Star has a strong pan-India presence, spanning 900 towns and retailing through more than 10,000 outlets across the country. Tier 3, 4 and 5 markets are emerging as key growth engines, outpacing Tier 1 and 2 cities, albeit on a smaller base, Blue Star said in a statement.
The AC manufacturer plans to further strengthen its network and distribution. “We want to ensure that our aftermarket presence is differentiating us from other players,” Thiagarajan said.
Air conditioner sales volumes are expected to grow 15% in the financial year 2026-27 (FY27), even as the industry awaits the onset of summer in north India that has been delayed due to a western disturbance, according to B Thiagarajan, Managing Director, Blue Star Ltd.
“We expect 25% revenue growth and 15% volume growth in air conditioners for FY27,” Thiagarajan told BT.
This comes after room air conditioner volumes declined 5% decline in FY26, mainly due to an unexpectedly short summer.
Blue Star has hiked AC prices by 8% in 2026 after the new Bureau of Energy Efficiency (BEE) norms came into effect from January. The company will undertake another 5% price increase in April, depending on the onset of the summer season, Thiagarajan said. “It’s going to be difficult. You can’t pass on a huge price increase unless the demand is robust. The only silver lining is that there is 10% reduction in tax after the GST rate rationalisation last year,” he added.
The Blue Star MD expects a third price increase this year, ahead of the festive season, as costs of key raw materials like copper and plastics have gone up. “The third price increase will happen in the festival season because all raw materials have been bought for the summer season,” Thiagarajan said.
The global air conditioning market is at 220 million units, whereas India sells about 14 million units. India’s AC market is growing at a CAGR of 19% and is expected to cross 30 million units by 2030, driven by strong first-time adoption in low-penetration markets as well as replacement demand in more mature urban centres, according to industry estimates.
Blue Star, which currently has a market share of 14.3% in air conditioners, is eyeing 15% share in FY27. “Our immediate goal is to reach 15% market share by FY27,” says Thiagarajan.
To achieve this milestone, the company has launched 125 new room air conditioner models ahead of the summer season. The portfolio includes energy-efficient ACs, heavy-duty ACs, and Hot and Cold ACs, among others. E-commerce accounts for about 10% of its sales, while 44% of sales come from large-format organised retail.
All models comply with the new Bureau of Energy Efficiency (BEE) standards that came into effect on January 1, 2026.
Blue Star has a strong pan-India presence, spanning 900 towns and retailing through more than 10,000 outlets across the country. Tier 3, 4 and 5 markets are emerging as key growth engines, outpacing Tier 1 and 2 cities, albeit on a smaller base, Blue Star said in a statement.
The AC manufacturer plans to further strengthen its network and distribution. “We want to ensure that our aftermarket presence is differentiating us from other players,” Thiagarajan said.