MD Meeting KTAs; Data Center Opportunity

Research evidence excerpt

MD Meeting KTAs; Data Center Opportunity

India | Electrical

Blue Star Limited EquityJuneResearch22, 2026

COMPANY UPDATEMD Meeting KTAs; Data Center Opportunity

We met Mr Thiagarajan (MD) on sidelines of hosting his investor meetings. RATING HOLD

Apr-May26 RAC industry sales is strong at +25-30%YoY. Data Center is a PRICE INR1,667.45^

strong opportunity - India's capacity is est 1.5GW, which can grow ~5x by PRICE TARGET | % TO PT INR1,735 | +4%

2030e. We est BLSTR's potential TAM at ~50% of total DC capex (part MEP 52W HIGH-LOW INR2,049.95 - INR1,450.00

+Cooling). BLSTR expects its DC-MEP sales to triple from ~Rs10bn now FLOAT (%) | ADV MM (USD) 87.1% | 9.92

(~10% of total sales) to est ~Rs30bn (~15% of sales) in next 3-4Y. We MARKET CAP INR342.8B | $3.6B

provide sensitivity analysis below. TICKER BLSTR IN

^Prior trading day's closing price unless otherwise

noted.

DC Opportunity Strong: We can split DC capex in 3 solutions per Exh 1: 1) MEP, Structural, Price: Market close May 3

Architectural est at ~40-45% of capex, 2) Cooling solutions est at ~15-20% (growth phase for

local HVAC players) and 3) Others at ~30-35% eg: land acquisition, modular structures (racks) FY (Mar) CHANGE TO JEFe JEF vs CONS

and network infra.

2026 2027 2026 2027

BLSTR presently caters to the MEP opportunity in domestic DC industry, with potential to REV NA NA NA NA

address cooling solutions in coming years. Potential TAM for BLSTR going forward can be est EPS NA NA NA NA

at ~50% of overall DC capex. India's Data Center (DC) capacity is est 1.5GW now, and could

grow ~5x by 2030e. 2026 (INR) Q1 Q2 Q3 Q4 FY

EPS -- -- -- -- 25.67

BLSTR's Solutions for DC: EMP+Commercial AC is ~50% of BLSTR’s sales and is est PREV

to grow at +14% CAGR in FY26-29e. DC-MEP orders are ~20% of BLSTR’s ~Rs69bn