Company Overview

KRN Heat Exchanger and Refrigeration Limited reported strong financial performance for FY 2025-26 with significant growth across key metrics. The company operates in the HVAC & refrigeration manufacturing sector with expanding global presence.

Financial Performance Highlights

Consolidated Results:

  • Revenue from Operations: ₹609.81 crore, representing 38.06% YoY growth from ₹441.70 crore in FY 2024-25
  • Net Profit: ₹76.47 crore, representing 44.62% YoY growth from ₹52.88 crore in FY 2024-25
  • EBITDA: ₹112.87 crore with EBITDA margin of 18.81%
  • EPS: ₹12.30 for FY 2025-26

Standalone Results:

  • Revenue From Operations: ₹6,762.30 lakhs (₹4,311.90 lakhs in FY25)
  • Net Profit After Tax: ₹7,130.53 lakhs (₹5,017.46 lakhs in FY25)
  • Earnings Per Share: ₹11.47 for FY26 (₹9.25 for FY25)

Capital Raising & Corporate Actions

The company successfully completed a ₹350 crore Qualified Institutional Placement (QIP) in mid-2026 with participation from elite domestic and international institutional investors, including Abu Dhabi Investment Authority (ADIA). The funds were utilized for capacity expansion and working capital requirements. IPO proceeds of ₹31,111.66 lakhs were deployed for investment in subsidiary KRN HVAC Products and general corporate purposes.

Operational Expansion & Diversification

  • Commissioned new world-class manufacturing facility in Neemrana, Rajasthan through wholly-owned subsidiary KRN HVAC Products Private Limited
  • Total production capacity expanded to over 6 million units annually (six-fold increase)
  • Acquired bus air-conditioning division of Sphere Refrigeration Systems in Q2 FY 2025-26
  • Export footprint expanded to 19 countries with 200+ global customers including Daikin, Schneider Electric, Carrier, Voltas, and Blue Star
  • Export revenue of ₹99 crore, representing approximately 17% of consolidated revenue
  • Added 70+ new customers in FY26

Subsidiary Performance

KRN HVAC Products Private Limited:

  • Turnover: ₹218.85 crore in FY 2025-26 (₹155.10 crore in FY 2024-25)
  • Net Profit: ₹6.11 crore (₹2.78 crore in FY 2024-25)
  • Converted ₹100 crore unsecured loan into equity shares

Thermotech Research Laboratory Private Limited:

  • Net Loss: ₹0.95 crore

Corporate Governance & Director Information

The 9th Annual General Meeting is scheduled for September 25, 2026 through video conferencing. Key management includes:

  • Mr. Santosh Kumar Yadav (Managing Director): 20,299,950 shares (32.66%)
  • Mrs. Anju Devi (Non-Executive Director): 23,700,000 shares (38.13%)
  • Mr. Manohar Lal (Non-Executive Director): 10 shares

Management changes included appointment of Mr. Pawan Nawal as CFO and Mr. Jitendra Kumar Sharma as Company Secretary.

Financial Position & Ratios

Significant changes in financial ratios included:

  • Inventory Turnover Ratio declined from 4.49 to 2.20 times due to inventory build-up for new facility
  • Current Ratio declined from 4.52 to 1.64 times due to deployment of IPO proceeds
  • Debt-Equity Ratio increased from 0.07 to 0.33 times due to working capital borrowings
  • Return on Net Worth improved from 10.60% to 13.32%

Property, plant and equipment gross block stood at ₹4,243.22 lakhs with additions of ₹28.63 lakhs during FY26. The company maintained strong technical capabilities with advanced testing infrastructure and multiple international certifications.

Regulatory Compliance & CSR

The company paid penalties of ₹82,000 each to BSE and NSE for delay in constituting Risk Management Committee. CSR expenditure of ₹118.19 lakhs exceeded the required ₹117.74 lakhs, supporting education, healthcare, environmental sustainability, and rural development initiatives.

Forward Outlook

The company anticipates robust growth driven by Indian heat exchanger market projected to reach USD 1,488.5 million by FY2030 (11.8% CAGR) and HVAC market projected to reach USD 32.6 billion by FY2030 (13.7% CAGR), with expansion opportunities in data centers, semiconductor manufacturing, renewable energy, and electric transportation sectors.