Shree Refrigerations Limited will inaugurate a new manufacturing facility at Karad in Maharashtra on June 20, 2026, expanding its production capacity by 50,000 square feet to strengthen its capabilities in the marine and defence HVAC&R sectors. The new plant, developed on a 6-acre area, is designed as a state-of-the-art unit with complete backward integration capabilities and compliance with Indian Green Building Council (IGBC) standards. This strategic expansion is intended to consolidate the company's position as a preferred partner for critical defence applications by enhancing its ability to design and manufacture specialised cooling solutions.

New Facility at a Glance

The following table summarises the key details of the new Karad manufacturing facility:

The facility has been designed with provisions for a further expansion of 50,000 square feet at the same location. Ravalnath Gopinath Shende, Chairman and Managing Director of Shree Refrigerations Ltd., stated that the new unit reinforces the company's focus on indigenous design and manufacturing, providing long-term lifecycle support for critical infrastructure and defence applications.

Operational Strategy and Efficiency Goals

In the initial phase, the company aims to improve efficiency and strengthen the supply chain by reducing dependency on the Pune-based supply ecosystem. The focus will be on developing stronger backward integration to manufacture components in-house, thereby improving manufacturing time and reducing logistical delays. Shende highlighted that a key metric for monitoring will be the conversion time from order confirmation to final delivery, as reducing this cycle is expected to enhance customer satisfaction and internal productivity given the customised nature of most projects.

Financial Performance

The company reported strong operational and financial performance during H2FY26 and FY26. The table below captures the key financial highlights:

This growth was supported by improved execution capabilities, higher project completion rates, and operating leverage benefits.

Strategic Positioning

Shree Refrigerations Limited is the only Indian company with naval registrations across three key segments: Chillers & Refrigeration Plants, Turnkey HVAC&R Solutions, and Electrical Control Panels. With 35 years of experience in the refrigeration industry, the firm pivoted to the defence sector less than a decade ago. Its portfolio includes Electrical Control Panels for defence platforms and Heavy Fabrication Services supporting large-scale defence manufacturing requirements.

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.