Voltas vs Blue Star: Here’s how two consumer durable players fared in Q4FY25 results

India’s consumer durable white goods industry witnessed strong growth in FY25, with increased penetration in tier 1 and tier 2 cities. Two major consumer durable companies, like Voltas and Blue Star, released their Q4FY25 results recently. Voltas continues to maintain the upper hand with strong high double-digit growth and superior operational metrics.

Strong revenue growth

The top line for the quarter remained strong across both companies. The total revenue for Voltas grew by 13% YoY to ₹4,767 crore. Blue Star witnessed higher growth at 20.7% YoY to ₹4,018 crore. On a sequential basis, Voltas witnessed superior growth with 53% Qoq growth in the top line vs 43% for Bluestar in the Q4FY25. The strong growth was primarily driven by robust demand ahead of the summer season, which continued to remain a key tailwind for the sector.

Superior operational performance

Voltas witnessed significant growth in the operating profit for the quarter at ₹332 crore, up by 74% YoY as against ₹190 crore in the previous year's similar quarter. Blue Star’s EBITDA for the quarter also remained strong at ₹279 crore as compared to ₹241 crore in the previous year's similar quarter. Voltas witnessed margin expansion from 4.5% to 6.98% for the Q4FY25. This was primarily due to various value engineering initiatives and cost control measures. Blue Star reported a small contraction in the operating margins from 7.27% to 6.95%.

Robust bottom line

Despite the inter-segmental challenges, both companies managed to garner significant profit growth. Voltas Q4FY25 profit after tax grew by 79% YoY to ₹267 crore for Q4FY25. On an annual basis, the company’s profit after tax grew from ₹834 crore for FY25 as compared to ₹248 crore in FY24. This marks the highest ever annual net profit for the company in its history. Meanwhile, the Blue Star reported strong growth of 22% YoY growth at ₹194 crore for Q4FY25 and 5.95% annual growth over the last year to ₹592 crore.

Segmental highlights

The key segment for both companies reported strong double-digit growth of 17% and 22% for Voltas and Blue Star, respectively. The operating margin for the segment also improved by nearly 100 bps for both companies. Sectoral tailwinds like strong demand for air-conditioners in the Q4 benefited the companies most during the quarter.

While the engineering project business for Blue Star witnessed superior performance compared to Voltas. The Electro-mechanical project segment revenue for Blue Star grew by 27% YoY to ₹5,998 crore for FY25 with an improved margin of 8.2% from 7.2% in the previous year. The Voltas’ engineering projects segment grew marginally by 3.6% YoY to ₹1,138 crore. Despite the marginal growth, the operating margins for the segment remained healthy with a 200 bps jump in EBITDA margin for the quarter from 24% to 26 in Q4FY25.