KRN Heat Exchanger Reports Strong Q1 FY26 Results, New Facility Operational
KRN Heat Exchanger and Refrigeration Limited announced robust Q1 FY26 results with consolidated revenue of INR 118.86 crores and net profit of INR 12.42 crores. Standalone net profit increased by 34.85% YoY to INR 15.69 crores. The company's new Neemrana Manufacturing Facility commenced operations, and its subsidiary received approval for a INR 141.72 crore incentive under the PLI scheme for white goods. Export revenue grew by 39.04%, with the company targeting 50% export share within three years. KRN is also exploring new product segments and sees potential in the data center cooling market.
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KRN Heat Exchanger and Refrigeration Limited has reported robust financial results for the first quarter of fiscal year 2026, showcasing significant growth and operational advancements. The company's performance reflects its strong market position and strategic initiatives in the heat exchanger and HVAC industry.
Financial Highlights
KRN Heat Exchanger delivered impressive consolidated results for Q1 FY26:
| Metric | Value |
|---|---|
| Consolidated revenue | INR 118.86 crores |
| EBITDA | INR 17.59 crores |
| EBITDA margin | 15.26% |
| Net profit | INR 12.42 crores |
| Net profit margin | 10.45% |
| Earnings per share (EPS) | INR 2.00 |
On a standalone basis, the company's performance was equally noteworthy:
| Metric | Value | YoY Change |
|---|---|---|
| Total income | INR 117.14 crores | Up 18.65% |
| EBITDA | INR 19.79 crores | 16.02% growth |
| EBITDA margin | 17.30% | - |
| Net profit | INR 15.69 crores | Up 34.85% |
| Net profit margin | 13.39% | Improved by 161 basis points |
| Standalone EPS | INR 2.52 | - |
Segment Performance
The company's growth was driven by strong performance across both domestic and international markets:
| Segment | Revenue | YoY Change |
|---|---|---|
| Domestic | INR 96.39 crores | Up 17.27% |
| Export | INR 18.89 crores | Up 39.04% |
Export contribution stood at 16.4% of total sales.
KRN Heat Exchanger reported significant traction in international markets, particularly in the UAE and Italy. The company's expanding global footprint, which includes presence in Germany, Canada, and France, continues to be a key growth driver.
New Manufacturing Facility
A major highlight of the quarter was the successful commencement of commercial operations at the company's new Neemrana Manufacturing Facility. This state-of-the-art facility, operated by KRN's wholly-owned subsidiary KRN HVAC Products Private Limited, began operations on May 31, 2025. The new plant enhances the company's capacity to serve both domestic and global markets with high-quality heat exchangers and HVAC products.
PLI Scheme Approval
In a significant development, KRN's subsidiary secured approval under the Production Linked Incentive (PLI) scheme for white goods. The company has been sanctioned an incentive of INR 141.72 crores by IFCI Ltd. This incentive is expected to accelerate expansion, deepen backward integration, and enhance localization, all of which are integral to KRN's strategy of building a cost-efficient and self-reliant manufacturing ecosystem.
Future Outlook
Looking ahead, KRN Heat Exchanger remains focused on expanding its market share, strengthening its global presence, and executing its strategic roadmap. The company is aligned with structural tailwinds supporting the HVAC and refrigeration industry, including rising infrastructure development, sustainability focus, and increasing adoption of energy-efficient systems.
Management expects the new Neemrana facility to operate at 20-25% capacity utilization in the current year, with production ramping up from Q3 FY26. The company has set an ambitious target of achieving a 50% export share within three years.
Investor Conference Call Highlights
During the recent investor conference call, management provided additional insights:
- The company is in the process of setting up the Thermotech Research Laboratory, which will be the first lab in India approved by AHRI (Air-Conditioning, Heating, and Refrigeration Institute).
- KRN is exploring opportunities in new product segments, including refrigerator components and bar and plate heat exchangers, which are expected to offer higher margins.
- The company sees significant potential in the data center cooling market, with recent announcements of major investments in this sector.
- KRN is well-positioned to benefit from the trend towards district cooling systems and centralized air conditioning in high-end residential projects.
With its growing portfolio, strong order book, and capable team, KRN Heat Exchanger and Refrigeration Limited is confident in sustaining its positive trajectory in the upcoming quarters, capitalizing on both domestic and international opportunities in the HVAC and heat exchanger markets.
Historical Stock Returns for KRN Heat Exchanger and Refrigeration
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.26% | -2.82% | -8.46% | -19.97% | -0.25% | +48.23% |
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