KRN Heat Exchanger Reports 46% Surge in Q2 Net Profit, Revenue Jumps 65%

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:

Metric	Q2 FY25	Q2 FY24	YoY Change
Net Profit	₹180.00 crore	₹123.00 crore	+46%
Revenue	₹1,500.00 crore	₹911.00 crore	+65%
EBITDA	₹303.00 crore	₹181.00 crore	+67%
EBITDA Margin	19.90%	19.88%	+2 bps

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.76%	-3.80%	-2.61%	+2.86%	-6.93%	+63.55%

KRN Heat Exchanger and Refrigeration Limited , a company specializing in heat exchange and refrigeration solutions, has received a show cause notice from the Goods and Service Tax (GST) authorities in Rajasthan. The notice, issued on October 31, 2025, proposes a tax demand of Rs. 5.53 crores, including interest and penalty.

Details of the Show Cause Notice

The show cause notice, issued under Section 74A(2) read with Section 74A(5)(i) of the SGST Act, 2017 and Section 20 of the IGST Act, 2017, pertains to Input Tax Credit (ITC) availed and utilized by the company. The GST authorities allege that this utilization was in contravention of Section 16 of the GST Act for the period of August 2025.

Key Points of the Notice

Aspect	Details
Issuing Authority	GST Authorities, Rajasthan
Nature of Notice	Show Cause Notice
Tax Demand	Rs. 5.53 crores (including interest and penalty)
Period Concerned	August 2025
Alleged Violation	Contravention of Section 16 of the GST Act regarding Input Tax Credit

Company's Response

In its disclosure to the stock exchanges, KRN Heat Exchanger and Refrigeration Limited stated that it plans to file an appropriate response to the notice within the prescribed timelines. The company will present its case before the Adjudicating Authority.

Potential Impact

While the financial impact of Rs. 5.53 crores is significant, the ultimate outcome will depend on the company's response and the decision of the Adjudicating Authority. Investors and stakeholders should note that this is a proposed tax demand at this stage, and the final liability, if any, may differ based on the adjudication process.

Upcoming Earnings Call

In a separate announcement, KRN Heat Exchanger and Refrigeration Limited has scheduled its Q2 & H1 FY26 Earnings Call for November 6, 2025, at 11:00 AM. This call may provide further insights into the company's financial position and its strategy to address the GST notice.

Investors and analysts will be keenly watching for any updates on this matter during the upcoming earnings call, as it could have implications for the company's financial outlook and compliance procedures.