Shree Refrigerations Limited submitted the transcript of its post-earnings conference call for the half-year and full financial year ended March 31, 2026, to the BSE on June 1, 2026. The company reported a 64% year-on-year increase in Profit After Tax (PAT) and a 50% rise in turnover for FY26. The earnings call, held on May 26, 2026, was conducted in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

For the financial year 2025-26, Shree Refrigerations recorded a PAT of INR21 crores, up from INR13 crores in the previous year. Revenue from operations increased to INR153 crores from INR50 crores in the second half, driven by higher execution. The EBITDA margin for the second half stood at 26.3%, while the overall PAT margin for the year improved to 14% from 13%. Earnings per share (EPS) rose to INR6.47 from INR5.00, despite a dilution in stake following an IPO.

Operational Highlights

The company holds a 64% market share in the defence HVAC sector. It has an order book of INR270 crores, which is 1.8 times its revenue. Management guided for a 40% CAGR over the next three to five years. The company is expanding its manufacturing facility, adding 50,000 square feet to achieve a total capacity of 80,000 square feet, with commercial production expected to commence in June 2026.

Strategic Initiatives

Shree Refrigerations is expanding into the data centre cooling market through a strategic partnership with Smardt. It also entered a service partnership with Danfoss USA for oil-free compressors. The company aims to reduce its working capital cycle, which improved from 570 days to 370 days in FY26.

Management Commentary

The management team, including Mr. Ravalnath Gopinath Shende (CMD), Mr. Abhijit Saoji (CEO), and Mr. Manoj Kothale (CFO), discussed the growth outlook. They highlighted the Total Addressable Market (TAM) of INR3,000 crores to INR3,500 crores over the next two years in the marine segment. The company expects EBITDA margins to remain between 20% and 24% going forward.

Tanmay Mukund Pethkar, Company Secretary and Compliance Officer, signed the regulatory filing.

Shree Refrigerations Limited reported a 65% year-on-year increase in net profit to ₹214 crore for the financial year ended March 31, 2026, driven by a 55.5% rise in revenue from operations to ₹1,535.5 crore. The company subsequently resubmitted its audited standalone and consolidated financial results to incorporate a presentational refinement in the Cash Flow Statement, specifically regarding the classification of the 'Increase/(Decrease) in Provisions' line item within the 'Changes in Working Capital' section. This reclassification aligns with Accounting Standard 3 principles and does not alter the net profit, balance sheet position, or closing cash balances.

The Board of Directors approved the audited standalone and consolidated financial statements at its meeting held on May 25, 2026. The resubmission on May 29, 2026, confirmed that the revision is purely presentational, with no material impact on the financial position. Statutory Auditors M/s. SSSS & Associates issued an unmodified opinion on the results.

Financial Performance

The company delivered strong growth momentum in the second half of the fiscal year, with revenues growing by over 100% on both a year-on-year and half-on-half basis. Standalone net profit for H2FY26 rose to ₹199.2 crore compared to ₹46.8 crore in the same period of the previous year, while revenue surged to ₹1,031.6 crore from ₹477.6 crore. EBITDA for H2FY26 stood at ₹271.6 crore, with margins expanding to 26.3%.

For the full year, total revenue stood at ₹1,535.5 crore, compared to ₹987.3 crore in the previous year. Total expenses increased to ₹1,207.3 crore from ₹717.7 crore. Profit before tax for the year rose to ₹248.2 crore from ₹186.9 crore in FY25. EBITDA for the year was ₹328.2 crore, with margins at 21.4%.

Cash Flow Revision Details

The resubmission addressed the classification of provisions in the cash flow statement. Under the revised presentation, the standalone 'Increase/(Decrease) in Provisions' was adjusted to ₹360.02 lakh from a previous presentation of -₹744.86 lakh. The consolidated figure was revised to ₹363.62 lakh from -₹741.26 lakh. Despite this reclassification, the net cash flows from operating activities and the closing cash and cash equivalents remained unchanged.

Operational Highlights and Balance Sheet

Strategic investments in HVAC execution capabilities during H1FY26 yielded strong results in H2FY26. The working capital cycle improved substantially from approximately 570 days in FY25 to around 370 days in FY26. As of March 31, 2026, the company's unexecuted order book stood at 1.8x of FY26 revenue, led by the HVAC segment at 59%.

The company's total assets increased to ₹2,999.3 crore as of March 31, 2026, from ₹1,887 crore a year earlier. Shareholders' equity rose to ₹2,196.4 crore, driven by an increase in reserves and surplus to ₹2,125.1 crore. Cash and cash equivalents surged to ₹575.1 crore from ₹59.3 crore, following the receipt of IPO proceeds. The company has fully utilized the IPO proceeds of ₹945.125 lakh for issue-related expenses, general corporate expenses, and working capital requirements.