KRN Heat Exchanger and Refrigeration Limited reported robust financial results for the second quarter and first half of fiscal year 2026, marked by significant revenue growth and improved profitability.

Financial Highlights

Standalone Performance

Consolidated Performance

Key Business Highlights

• Strategic Acquisition: KRN HVAC Products Pvt. Ltd., a wholly owned subsidiary, signed a Business Transfer Agreement to acquire the Bus Air-Conditioning division of Sphere Refrigeration Systems Pvt. Ltd. This acquisition is expected to strengthen KRN's presence in the automotive HVAC segment.

• Credit Rating Upgrade: The company received a CRISIL A- rating with a Stable Outlook for its bank facilities, reflecting its strong credit profile and consistent operational performance.

• Export Revenue: For H1 FY26, the company's consolidated export revenue was led by United Arab Emirates (47.43%), USA (20.01%), and Canada (18.86%).

Management Commentary

Mr. Santosh Kumar, Chairman & Managing Director, commented on the results: "We are pleased with the strong performance achieved during the second quarter and first half of FY26, marking another step forward in KRN's growth journey. The acquisition of the Bus Air-Conditioning division is a key milestone that expands our presence in the automotive HVAC segment, while the CRISIL A- rating reflects our sound financial health and credibility."

He added, "Looking ahead, our focus remains on enhancing product quality, broadening our global footprint, and nurturing long-term customer relationships. The achievements of Q2 and H1 FY26 give us strong confidence in our direction as KRN evolves into a globally trusted name in the HVAC industry."

KRN Heat Exchanger and Refrigeration Limited continues to demonstrate strong growth momentum, supported by strategic initiatives and expanding market presence. The company's focus on quality, innovation, and customer relationships positions it well for sustained growth in the HVAC industry.

Note: All figures are rounded to two decimal places where applicable.

KRN Heat Exchanger and Refrigeration Limited has reported a robust financial performance for the second quarter of the fiscal year, with significant growth in both revenue and profitability.

Financial Highlights

The company's consolidated financial results for Q2 show impressive year-over-year growth:

Strong Revenue Growth

KRN Heat Exchanger's revenue saw a substantial increase of 65% year-over-year, rising to ₹1,500.00 crore in Q2 FY25 from ₹911.00 crore in the same period last year. This significant growth may be attributed to increased demand for the company's heat exchanger products and potential market expansion efforts.

Profit Surge

The company's net profit for the quarter stood at ₹180.00 crore, marking a 46% increase from ₹123.00 crore reported in Q2 of the previous fiscal year. This notable rise in profitability suggests effective cost management and operational efficiency improvements.

EBITDA Performance

KRN's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showed strong growth, increasing by 67% to ₹303.00 crore, up from ₹181.00 crore in the corresponding quarter of the previous year. The EBITDA margin remained stable at 19.90%, compared to 19.88% in Q2 FY24, indicating consistent operational efficiency despite the significant revenue growth.

Market Implications

The strong performance of KRN Heat Exchanger may be seen as a positive indicator for the Heat Ventilation Air Conditioning and Refrigeration (HVAC&R) industry in India. As a manufacturer of fin and tube type heat exchangers, KRN's growth could reflect broader trends in construction, infrastructure development, and the increasing demand for climate control solutions.

Investors and market analysts may view these results favorably, potentially impacting the company's stock performance and market perception. However, it's important to note that future performance may be subject to various factors including market conditions, raw material prices, and overall economic trends.

KRN Heat Exchanger and Refrigeration Limited continues to demonstrate strong financial health and growth potential in the HVAC&R sector. The company's ability to significantly increase revenue while maintaining profitability margins positions it well for future expansion and market opportunities.