Blue Star bets big on festive boom after GST cuts; expects doubles sales growth
Blue Star doubled its festive sales growth forecast to 30%, crediting GST cuts on durables. MD B Thiagarajan expects stronger demand, premiumisation, and industry growth revival despite earlier setbacks from a weak summer quarter.
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Consumer durables maker Blue Star has nearly doubled its festive season growth forecast to 30%, up from 15–20% earlier, after the government slashed GST on durables from 28% to 18%.
CNBC TV18 reported, Managing Director B Thiagarajan said the company will pass on the full benefit of the tax cut to customers, predicting that the reform will significantly alter buying patterns this festive season.
“Someone who wanted to buy a three-star will end up buying a five-star. Someone who wanted to buy one air conditioner may even consider buying two,” Thiagarajan said, highlighting a likely shift toward premiumisation and higher-ticket purchases.
The upbeat forecast marks a turnaround for the industry, which had been reeling from a weak summer quarter. Thiagarajan noted that while expectations at the start of FY26 were for 25–30% growth, the washout summer had pulled projections down to 10–15%. Now, with the GST boost, he expects the industry to clock 20% full-year growth.
Still, dealers holding old inventory taxed at higher rates may face temporary working capital strain, though Blue Star’s current inventory levels, about 30 days above requirement remain “manageable.” The company is reworking demand planning to keep up with the anticipated spike.
For consumer durables, the GST cut could act as a psychological trigger, encouraging households not just to upgrade but also to expand purchases.
