KRN Heat Exchanger and Refrigeration reported a sharp acceleration in profitability for Q1FY27, with consolidated net profit rising 165% YoY to ₹32.9 crore. Revenue from operations jumped 119% to ₹252.3 crore compared to ₹115.3 crore in Q1FY26. EBITDA surged 179% to ₹49.1 crore from ₹17.6 crore in the corresponding period last year. The board of directors approved the unaudited financial results on August 12, 2026. Profit before tax stood at ₹42.3 crore, up from ₹18.3 crore in Q1FY26, while earnings per share rose to ₹5.20 from ₹2.00 a year ago.

Financial performance

The company's revenue growth outpaced expense inflation, driving operating margin expansion. Total expenses rose to ₹212.8 crore from ₹100.6 crore YoY, yet profit before tax grew at a faster pace. The EBITDA margin widened by over 400 basis points to 19.44% from 15.26%, reflecting improved operational efficiency alongside volume growth.

Domestic operations remained the primary revenue driver, contributing ₹199.9 crore, while the overseas segment contributed ₹52.4 crore. Exports to the USA, France, and Italy formed key components of international sales.

Capital raise and fund utilisation

During the quarter, the company completed a Qualified Institutional Placement (QIP), raising net proceeds of ₹341.8 crore. The issuance involved 33.02 million equity shares at ₹1,060 per share. The funds were utilised for debt repayment, working capital requirements for its subsidiary KRN HVAC Products Private Limited, and general corporate purposes.

The company also disclosed that the entire proceeds from its earlier IPO, amounting to ₹311.1 crore, have been fully utilised. This includes equity investment in its subsidiary for setting up a new manufacturing facility in Neemrana, Rajasthan.

What the numbers show

A notable divergence exists between consolidated and standalone performance. While consolidated revenue surged 119% YoY, standalone revenue declined 19% to ₹182.0 crore from ₹202.1 crore in Q1FY26. However, standalone net profit still grew 19% to ₹18.7 crore. This indicates that subsidiary entities, particularly KRN HVAC Products Private Limited, are driving the majority of the group's recent growth, absorbing a larger share of operational activity.

The margin expansion to 19.44% from 15.26% highlights the impact of scale. With revenue more than doubling while EBITDA nearly tripled, fixed-cost absorption is clearly visible, enhancing the quality of earnings beyond top-line growth.

Corporate appointments

The board approved the appointment of M/s. R S Chauhan & Associates as Cost Auditor and M/s. Sharma Shankar & Co. as Internal Auditor for FY27, pursuant to recommendations from the Audit Committee.

KRN Heat Exchanger and Refrigeration has strengthened its domestic revenue pipeline through a significant contract win by its wholly owned subsidiary, KRN HVAC Products Private Limited. The company disclosed to stock exchanges on July 23, 2026, that it received an order for the supply of heat exchanger coils valued at ₹50.87 crore. This development highlights the subsidiary’s growing capability in securing large-scale projects within the domestic HVAC sector, adding substantial value to the company’s order book without involving related-party transactions.

The total contract value comprises a base amount of ₹43.11 crore, with an additional ₹7.76 crore accounted for as Integrated Goods and Services Tax (IGST). Delivery of the coils will be executed according to the specific terms outlined in the order agreement. The transaction is classified as being in the normal course of business, with no internal orders included.

Order Financials

The financial breakdown of the secured contract is detailed below:

Transaction Context

KRN Heat Exchanger emphasized that the order was obtained independently of its promoter group. The company explicitly stated that neither the promoters nor any group companies have an interest in the entities that awarded the project. Consequently, the transaction does not fall under the definition of a related-party transaction under regulatory guidelines.

Santosh Kumar Yadav, Managing Director of KRN Heat Exchanger and Refrigeration Limited, signed the disclosure filed with the Bombay Stock Exchange and the National Stock Exchange of India Limited. The announcement reflects the company's ongoing efforts to expand its footprint in the domestic heat exchanger market through its specialized subsidiary operations.