KRN Heat Exchanger and Refrigeration Limited , a leading player in the HVAC and refrigeration industry, has reported a robust performance for the second quarter of fiscal year 2026, with significant growth in revenue and profitability.

Financial Highlights

The company's standalone revenue for Q2 FY26 witnessed a remarkable year-on-year growth of 126%, reaching INR 227.22 crores compared to INR 100.48 crores in the same quarter last year. This substantial increase was driven by strong execution, improved capacity utilization, and sustained customer demand across both domestic and export markets.

The company's EBITDA increased by 69% to INR 29.60 crores, while net profit nearly doubled to INR 23.66 crores, marking a 95% growth compared to the previous year.

Operational Updates

New Manufacturing Facility

KRN's new manufacturing facility in Neemrana, commissioned on May 30, 2025, has started contributing significantly to the company's growth. In Q2 FY26, the new facility generated approximately INR 33.00 crores in revenue, operating at 20% capacity utilization. The management aims to increase this utilization to 50% in the next fiscal year.

Export Performance

The company's export business continues to show strength, with notable contributions from markets such as the UAE, United States, Canada, and Italy. The UAE market, in particular, has seen increased demand from existing customers.

Strategic Acquisition

KRN's subsidiary has acquired the bus air-conditioning division of Spare Refrigeration Systems Private Limited. This strategic move aims to expand the company's presence in the automotive HVAC segment and is expected to contribute to future growth.

Future Outlook

The management expressed optimism about the company's future prospects, citing several factors:

1. Capacity Expansion: With the new Neemrana facility ramping up, KRN expects to significantly increase its production capabilities.

2. Market Growth: The overall HVAC and refrigeration industry continues to see strong demand momentum, supported by infrastructure expansion and energy-efficient adoption.

3. Government Initiatives: The company anticipates benefits from the Production Linked Incentive (PLI) scheme and state government incentives starting next year.

4. Credit Rating: KRN recently received a CRISIL A- rating with a stable outlook for its bank facilities, which may potentially lead to improved financing terms.

5. Diversification: The company is expanding its product portfolio, including entry into bus air-conditioning and potential future involvement in railway HVAC systems.

While the management remains cautious about providing specific guidance, they expressed confidence in maintaining the positive growth trajectory in the coming quarters, supported by their expanded manufacturing capabilities and diversified product offerings.

As KRN Heat Exchanger and Refrigeration Limited continues to capitalize on market opportunities and strategic initiatives, investors and industry observers will be keenly watching the company's performance in the subsequent quarters to gauge the sustainability of its growth momentum.

KRN Heat Exchanger and Refrigeration , a player in the commercial air conditioning industry, recently held a conference call to discuss its financial outlook and operational projections. The company's management provided insights into their expectations for margins, capacity utilization, and industry growth.

Financial Outlook

The management of KRN Heat Exchanger and Refrigeration has opted for a cautious approach regarding revenue guidance:

• Revenue Guidance: The company declined to provide specific revenue projections.
• EBITDA Margins: Expected to remain steady at around 20.00%.
• Profit After Tax: Potential for growth due to incentives and tax benefits.

Capacity Utilization and Industry Projections

KRN Heat Exchanger and Refrigeration shared projections for their new facility and industry growth:

The company's approach to capacity utilization suggests a gradual ramp-up strategy for their new facility, potentially aligning with their expectations of industry growth over the coming years.

Conference Call Details

As per the LODR (Listing Obligations and Disclosure Requirements) data, KRN Heat Exchanger and Refrigeration conducted its Q2FY26 Earnings Conference Call on November 6, 2025. The company has made the audio recording of this call available on its website, demonstrating transparency in its communications with investors and analysts.

The audio recording can be accessed at: krnheatexchanger.com/wp-content/uploads/2025/11/Q2-FY26-Concall-Audio-KRN-Heat-Exchanger-and-Refrigeration-Limited.mp3

While the company expects to maintain stable EBITDA margins and sees potential for profit growth, the decision to withhold specific revenue guidance may reflect uncertainties in the broader economic environment or competitive landscape.