Blue Star Reports Possible Data Access Incident and Q3 Earnings Impact

Blue Star Ltd has informed stock exchanges about a potential data security incident involving limited product installation information. 

Separately, the company has also announced its financial results for the December quarter of FY26, which reflected a decline in profitability due to an exceptional, non-recurring expense.

Unauthorised Access to Product Installation Data

The company stated that it detected unauthorised access to certain product installation data and acted promptly to restrict access once the issue was identified. 

Blue Star has engaged external cybersecurity specialists to evaluate any potential impact and to carry out a detailed root-cause assessment.

According to the disclosure, the matter was brought to the attention of the company’s compliance officer late on January 31, 2026. 

The company said the disclosure has been made in line with its governance and compliance practices.

Steps Taken and Ongoing Review

Blue Star noted that immediate containment measures were implemented after the incident was identified. 

The company is continuing to work with cybersecurity experts to understand the scope of the access and to strengthen safeguards where required. 

It did not indicate any operational disruption linked to the incident at this stage.

Q3 FY26 Financial Performance

For the October–December quarter of FY26, Blue Star reported a consolidated net profit of ₹80.55 crore, marking a year-on-year decline of around 39% from ₹132.46 crore in the corresponding period last year. 

The reported figure was lower than market expectations.

Earnings per share for the quarter declined to ₹3.92 from ₹6.44 a year earlier, reflecting the impact of additional costs recognised during the period.

Impact of Exceptional Charge

The company attributed a large part of the profit decline to a one-time exceptional charge of ₹56.35 crore. 

This provision relates to an estimated increase in liabilities towards gratuity and leave encashment, following the government’s notification of four Labour Codes in November 2025.

Blue Star stated that the provision has been made in line with guidance issued by the Institute of Chartered Accountants of India and will be reviewed in March 2026, once there is further clarity on the applicable rules, wage definitions and employee coverage.

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Conclusion

Blue Star’s latest disclosures highlight two separate developments: a data access incident under review and a quarter affected by a regulatory driven, one off expense.

While the cybersecurity assessment is ongoing, the company has indicated that the financial impact in Q3 was largely attributable to an exceptional item rather than core operating performance.

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