Financial Highlights

Consolidated Performance Q1FY27 vs Q1FY26

  • Revenue from operations: ₹3,377.92 crore (up 13.3% from ₹2,982.25 crore)
  • EBIDTA (excluding other income): ₹174.95 crore (5.2% margin) vs ₹199.99 crore (6.7% margin)
  • PBT before exceptional items: ₹125.62 crore (down 23.7% from ₹164.64 crore)
  • Tax expense: ₹32.07 crore vs ₹42.41 crore
  • Net profit: ₹102.53 crore vs ₹120.82 crore

Financial Position

  • Carried-forward order book as of June 30, 2026: ₹7,764.38 crore (up 13.5% from ₹6,843.04 crore as of June 30, 2025)
  • Order book as of March 31, 2026: ₹6,922.99 crore
  • Capital employed as of June 30, 2026: ₹2,626.03 crore (down from ₹2,815.86 crore as of June 30, 2025)
  • Net cash position as of June 30, 2026: ₹900.25 crore (up from ₹370.92 crore as of June 30, 2025)

Segment Performance

Segment I: Electro-Mechanical Projects & Commercial Air Conditioning Systems

  • Revenue: ₹1,625.05 crore (up 15.1% from ₹1,412.46 crore)
  • Segment result: ₹110.62 crore (6.8% margin) vs ₹111.62 crore (7.9% margin)
  • Order inflow: ₹2,434.78 crore vs ₹1,963.43 crore
Electro-Mechanical Projects Business
  • Strong order bookings driven primarily by data centers
  • Carried-forward order book: ₹5,483.73 crore (up 7.9% from ₹5,080.36 crore)
  • Sluggish order inflow in commercial offices, factories, and infrastructure due to cost escalations from West Asia crisis
Commercial Air Conditioning Systems
  • Growth from industrial, retail, and healthcare segments
  • All key product categories (ducted systems, VRF, chillers) registered growth
  • Margin pressure from escalating commodity prices and depreciating currency
International Business
  • Pursuing Custom Design and Manufacturing (CDM) of heat pump solutions for OEMs in US and Europe
  • Targeting additional export revenue of USD 100 million per annum from FY28
  • Middle East markets experiencing uncertainty due to West Asia crisis

Segment II: Unitary Products

  • Revenue: ₹1,689.31 crore (up 12.8% from ₹1,499.37 crore)
  • Segment result: ₹49.69 crore (2.9% margin) vs ₹87.47 crore (5.8% margin)
Cooling Products Business
  • Pressure to liquidate inventory pile-up with trade due to delayed summer onset
  • Market operating prices remained low despite cost escalation attempts
  • Investments in advertising, trade schemes, and consumer finance offers
Commercial Refrigeration Business
  • Degrowth due to muted demand for deep freezers from ice cream OEMs
  • Expected demand pickup during festival season

Segment III: Professional Electronics and Industrial Systems

  • Revenue: ₹63.56 crore (down 9.7% from ₹70.42 crore)
  • Segment result: ₹9.57 crore (15.1% margin) vs ₹7.62 crore (10.8% margin)
  • Revenue decline mainly due to challenges in Med Tech business
  • Industrial Solutions business continued steady growth
  • Margin improvement due to favorable product/service mix and cost optimization

Business Outlook

  • Electro-Mechanical Projects business to benefit from strong data center MEP project orders
  • Continued volatility in commodity prices and exchange rates
  • R&D investments directed toward value analysis, value engineering, and product optimization
  • Focus on controlling operating costs and maintaining strong balance sheet
  • Cautious outlook due to West Asia conflict and market uncertainties

Challenges Mentioned

  • Unprecedented escalation in commodity prices
  • Depreciation of the Indian Rupee
  • Delayed onset and abrupt end to summer season
  • Huge inventory pile-up of old Room ACs in the trade
  • West Asia crisis impacting costs and market stability
  • US trade tariffs affecting international business prospects