Shree Refrigerations FY26 PAT Up 64% YoY

Revenue: Increased to INR153 crore, representing a growth of over 50% year-on-year (YoY).
Profit After Tax (PAT): Increased to INR21 crore, up 64% YoY.
Earnings Per Share (EPS): Increased to INR6.47 per share, up 28% YoY despite share dilution from an IPO.
EBITDA Margin: Moderated to 21% for the full year, down from 27% in the previous year, primarily due to a lower contribution from spares and service revenue (7% of total revenue vs. 30% last year).
Four-Year CAGR (FY23-FY26): Revenue grew at 45%, EBITDA at 40%, and PAT at 85%.

H1 FY26 Revenue: INR50 crore. Revenue was muted due to activities like design approvals, type testing, team building, and capacity expansion. EBITDA margin was 11%.
H2 FY26 Revenue: INR100 crore. EBITDA margin expanded significantly to 26.3%, and PAT margin improved to 19.3% from 2.9% in H1.
The skew was due to customer delivery schedules and the timing of order execution.

Net Worth: Increased to INR219 crore from INR118 crore, driven by the IPO and retained earnings.
IPO: A fresh issue of INR95 crores was completed.
Debt: High-cost debts were reduced. Interest cost decreased to INR1.3 crore in H2 from INR2.3 crore in H1.
Working Capital: Days improved dramatically from 570 days to 370 days. Receivable days reduced from 350 to 250 days, and inventory days fell from 250 to 230 days.
Other Current Assets: Increased to INR19.94 crore from INR3.02 crore, mainly due to advances to suppliers and GST input credit balances awaiting refund.

The company is a 30-year-old firm specializing in defence-grade HVAC and refrigeration systems for the Indian Navy.
It is the only Indian firm with 'three plus three' certification from Naval Fraternity, allowing it to manufacture and supply complete HVAC systems, AC/Ref plants, and their own control panels.
Current Market Share: 64%+ in the defence HVAC segment.
Active Projects: 8 ongoing projects, with 4 expected to be completed in FY27.

Plant 1: 20,000 sq ft facility in Pune, to be converted to assembly and testing.
New Plant (Hanbarwadi): A 50,000 sq ft owned facility with an estimated capital expenditure (CapEx) of INR25 crore. Commercial production commenced in June 2026, replacing a leased unit.
Total Capacity: The combined facilities provide ~70,000 sq ft of manufacturing space, which is backward integrated and certified by ISO, ZED Gold, and Indian Register of Shipping (IRS).
Revenue Potential: The existing infrastructure is estimated to support revenue up to INR400 crore.
The company does not foresee a major CapEx requirement for the next couple of years.

Data Centre Cooling: Entered into a strategic partnership with Smardt (a global leader in oil-free chillers) to provide cooling solutions for data centres. The company expects to secure a reference installation in FY27, with meaningful revenue contribution starting in FY28. The data centre cooling market is estimated to be 12-13% of a total data centre project's cost.
Service Partnership: Became an authorized service partner (TASP) for Danfoss Turbocor oil-free compressors in India. This is viewed as a strategic, capability-building step rather than a significant immediate revenue driver.
Export Markets: Plans to explore export opportunities in the marine segment are at a nascent stage.

Total Addressable Market (TAM): The management outlined a TAM of INR2,500 crore for the defence marine segment and an additional INR500+ crore for the non-defence (merchant marine) segment over the next ~2.5 years.
Growth Guidance: The management reaffirmed its target of achieving a 40% CAGR for the next 3-5 years and stood by its earlier long-term goal of reaching INR1,000 crore in revenue and INR120-130 crore PAT by FY31.
Margin Guidance: EBITDA margin is expected to be in the range of 20-24% going forward, supported by an increase in high-margin spares and service revenue to 15-20% of total revenue.
Order Inflow: For FY27, tenders worth approximately INR1,000 crore are expected to be floated in the defence segment.

Commodity Inflation: Rising prices of metals like copper are acknowledged as a headwind that may moderately impact margins, though long-term project costing includes some inflation buffers.
Revenue Seasonality: The business is subject to significant half-yearly skews based on shipyard delivery schedules, though managing more projects may help dampen this effect.

The conference was moderated by Vinay Pandit from Kaptify Consulting.