Shree Refrigerations Reports Muted H1 Performance, Maintains Strong Order Book Growth

Shree Refrigerations Limited , a leading manufacturer of HVAC solutions for Indian naval warships and submarines, reported a muted performance for the first half of fiscal year 2025-26, while maintaining a robust order book growth.

Financial Performance

The company posted revenue of INR 50.00 crores in H1 FY2025-26, with an EBITDA margin of 11.20% and a net profit margin of 2.90%. The performance was impacted by new HVAC order execution and front-loaded employee costs.

Key Metrics	H1 FY2025-26
Revenue	INR 50.00 crores
EBITDA Margin	11.20%
Net Profit Margin	2.90%

Despite the subdued first-half performance, the management remains optimistic about the full-year outlook. Manoj Kothale, CFO of Shree Refrigerations, stated, "We think to maintain the net profit margin as of last year for this year also."

Order Book Growth

A significant highlight for the company was the substantial growth in its order book. Shree Refrigerations saw its order book expand to INR 327.00 crores from INR 215.00 crores. This growth underscores the company's strong market position and the increasing demand for its specialized HVAC solutions in the naval sector.

Management Outlook

The management projects a 40-50% CAGR growth and expects a stronger performance in the second half of the fiscal year. This optimism is driven by higher customer delivery requirements anticipated in H2.

Abhijit Saoji, CEO of Shree Refrigerations, commented, "The second half delivery requirement from the customer are much higher as compared to first half. And we will be meeting the targets as have been projected by us."

Strategic Expansion

To meet the growing demand, Shree Refrigerations is expanding its manufacturing capabilities. Ravalnath Gopinath Shende, Chairman and Managing Director, mentioned, "We are responding to the scenario by renting another 20,000 square feet of factory and recruiting a whole lot of manpower to be able to make the customer delivery expectations."

Future Outlook

The company maintains a positive outlook for the future, supported by its strong order book and expansion plans. Shree Refrigerations aims to capitalize on the growing opportunities in the naval HVAC sector and potentially expand into new markets such as data center cooling solutions.

As the company navigates through the current fiscal year, investors and industry observers will be keenly watching its ability to execute on its order book and deliver on its projected growth targets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.00%	-5.26%	-15.60%	+22.29%	+22.29%	+22.29%

Shree Refrigerations has reported its financial results for the first half of FY26, highlighting stable revenue performance and significant order growth.

Financial Performance and Order Book

The company secured new project orders worth INR 1 billion from the Indian Navy's Fleet Support Ship, strengthening its position in the HVAC business. As of September 30, 2025, the order book stands at INR 3,276.20 million, which is 3.3 times the FY25 revenue.

While specific revenue figures for H1 FY26 were not provided, the company reported the following results for the half-year ended September 30, 2025:

Metric	Standalone	Consolidated
Revenue from operations	Rs 5,039.19 lakhs	Rs 5,039.19 lakhs
Profit after tax	Rs 75.37 lakhs	Rs 75.50 lakhs
Earnings per share	Rs 0.96	Rs 0.96

Operational Expansion and Investments

Shree Refrigerations implemented significant capacity enhancements during the period, including:

100% augmentation to the existing shop floor
Leasing of an additional 17,000 sq. ft. facility
Development of a new 100,000 sq. ft. facility underway

The company's workforce increased from 247 in FY25 to 323 in H1FY26. Front-loaded employee costs were incurred during H1FY26 as new personnel were recruited and trained for order execution.

Future Outlook

Revenue recognition for HVAC projects is expected in the second half of FY26 and beyond. Chairman Managing Director Ravalnath Shende described H1FY26 as a transformative period, highlighting the company's expansion into the HVAC space and strategic investments in execution capability.

Corporate Actions

During a board meeting, the company approved:

Availing banking facilities from YES Bank Limited
Renewal and enhancement of credit facilities from the State Bank of India, MIDC Satara Branch

Business Operations and Compliance

Shree Refrigerations continues to focus on manufacturing HVAC and refrigeration equipment. The company's financial results have been prepared in accordance with the applicable Accounting Standards notified under Section 133 of the Companies Act, 2013.

The company remains committed to growth in the refrigeration and HVAC sector while managing its financial operations and banking relationships effectively.