KRN Heat Exchanger and Refrigeration Limited – Investor Presentation Summary

Key Operational Highlights

  • Manufacturing facilities located in Neemrana, Rajasthan with a total land area of 104,948.13 SQFT for the parent company and 840,127.97 SQFT for the wholly-owned subsidiary KRN HVAC Products Private Limited.
  • Products reached customers across 14 countries during Q1 FY27.
  • Key drivers of operational performance: Growing demand for efficient heating, ventilation, air conditioning and refrigeration solutions; expanded export footprint; investments in capacity, localisation and backward integration.

Segment-wise Performance

  • The company manufactures heat exchangers, cooling coils, and integrated HVAC&R solutions across diversified portfolio including Fin & Tube Coils, Bar & Plate, Complete HVAC Systems, Bus AC Systems, Refrigeration Components, Technical Tubes, Sheet Metal Parts, and Tubings.
  • Serves diverse end-use industries including HVAC, refrigeration, data centers, automotive, railways, industrial cooling, process applications, power, and marine.

Financial Highlights

Standalone Q1 FY27:

  • Revenue: ₹181.97 Cr (59.07% YoY growth)
  • EBITDA: ₹24.67 Cr (24.67% YoY growth)
  • PAT: ₹18.67 Cr (19.02% YoY growth)
  • EPS: ₹2.95 (17.06% YoY growth)
  • EBITDA Margin: 13.56% (down 374 bps YoY)
  • PAT Margin: 10.26% (down 345 bps YoY)

Consolidated Q1 FY27:

  • Revenue: ₹252.32 Cr (118.87% YoY growth)
  • EBITDA: ₹49.06 Cr (178.85% YoY growth)
  • PAT: ₹32.90 Cr (164.84% YoY growth)
  • EPS: ₹5.20 (160.00% YoY growth)
  • EBITDA Margin: 19.44% (up 418 bps YoY)
  • PAT Margin: 13.04% (up 226 bps YoY)

Drivers of financial performance: Continued strength of business model, growing demand for HVAC&R solutions, strong export growth of 177% YoY.

Geographical Revenue Split

  • Export revenue grew 177% year-on-year during Q1 FY27.
  • Products reaching customers across 14 countries.
  • Strong domestic growth demonstrating depth of demand within core market.

Balance Sheet Snapshot

Consolidated FY26:

  • Shareholder's Fund: ₹574.00 Cr (Equity Share Capital: ₹62.16 Cr, Reserves and Surplus: ₹511.84 Cr)
  • Non-Current Borrowings: ₹0.21 Cr
  • Current Borrowings: ₹187.10 Cr
  • Trade Payables: ₹158.23 Cr
  • Inventories: ₹272.91 Cr
  • Trade Receivables: ₹174.71 Cr
  • Cash & Bank Balance: ₹46.44 Cr

Capex & Cash Flow Health

Consolidated FY26 Cash Flow:

  • Cash Flow from Operating Activities: -₹113.80 Cr
  • Cash Flow from Investing Activities: -₹34.16 Cr
  • Cash Flow from Financing Activities: ₹147.69 Cr
  • Net Increase in Cash & Cash Equivalents: -₹0.28 Cr

Investment Rationale: Focus on building scale, strengthening manufacturing capabilities, deepening presence across high-potential markets, capacity expansion, localisation and backward integration.

Strategic & R&D Initiatives

  • Established KRN HVAC Product Pvt. Ltd. as a wholly-owned subsidiary.
  • Acquired the Bus AC Division of Sphere Refrigeration Systems.
  • Added new production lines for 25 × 21.65 mm (9.52 mm) and 30.00 × 26.0 mm (12.7 mm) configurations.
  • Introduced new production lines featuring 5 mm tube diameter technology.
  • Strategic Rationale: Creating a stronger and more integrated operating base to support the next phase of growth, expanding into high-growth markets.

Management Commentary & Growth Outlook

Strategic Outlook: "We have begun FY27 on a strong note... We remain encouraged by the underlying business environment and the opportunities emerging across both domestic and international markets... our focus remains on building scale, strengthening our manufacturing capabilities and deepening our presence across high-potential markets... we remain focused on executing our strategy with discipline and building KRN into a stronger global player in the HVAC&R ecosystem." - Mr. Santosh Kumar Yadav, Chairman and Managing Director

Risks and Opportunities: Performance of the Indian economy and international markets, industry performance, competition, ability to implement strategy, growth and expansion levels, technological changes, market preferences, exposure to market risks.

Additional Information

  • Company got listed on NSE and BSE in October 2024
  • Founded in October 2017 in Neemrana, Rajasthan
  • Workforce: Skilled workforce supporting customer-centric approach
  • Certifications: ISO 9001:2015, IATF 16949:2016
  • Board of Directors includes 7 members with Mr. Santosh Kumar Yadav as Chairman & Managing Director