Shree Refrigerations Limited Receives Credit Rating Reaffirmation from CARE Ratings

Shree Refrigerations Limited announced on December 18, 2025, that CARE Ratings has reaffirmed and assigned credit ratings for the company's bank facilities. The Maharashtra-based HVAC systems manufacturer informed BSE about the rating action pursuant to Regulation 30 of SEBI listing regulations.

Credit Rating Details

CARE Ratings has evaluated bank facilities worth ₹90.00 crores across multiple categories. The rating agency provided both reaffirmations and new assignments based on the company's financial performance and operational capabilities.

Facility Type	Amount (₹ crores)	Rating	Action
Long Term Bank Facilities	7.61	CARE BB+ Stable	Reaffirmed (Reduced from 10.40)
Long Term/Short Term Bank Facilities	29.50	CARE BB+ Stable/CARE A4+	LT rating and Stable outlook assigned, ST rating reaffirmed
Long Term/Short Term Bank Facilities	30.00	CARE BB+ Stable/CARE A4+	LT rating reaffirmed, ST rating assigned
Long Term/Short Term Bank Facilities	22.89	CARE BB+ Stable/CARE A4+	Reaffirmed (Enhanced from 20.10)

Rating Rationale and Key Drivers

The ratings continue to remain constrained due to the company's moderate scale of operations and working capital intensive nature of business. CARE Ratings highlighted that the ratings are further constrained by the tender-driven competitive business environment, volatility in raw material prices, and exposure to changes in government regulations.

However, the ratings derive strength from several positive factors including experienced promoters, reputed clientele base, healthy profitability, and comfortable capital structure. The company's healthy order book position provides medium-term revenue visibility and supports debt coverage indicators.

Financial Performance Highlights

Shree Refrigerations demonstrated improved financial performance in FY25 with total operating income reaching ₹98.73 crores, reflecting a year-on-year increase of 22.90% from ₹80.31 crores in FY24. The company maintained healthy profitability with PBILDT margin of 24.34% in FY25, though slightly lower than 27.02% in FY24.

Financial Metric	FY24	FY25	H1FY26
Total Operating Income (₹ crores)	80.31	98.73	50.72
PBILDT (₹ crores)	21.70	24.03	5.98
PAT (₹ crores)	10.32	12.61	-
Overall Gearing (times)	0.67	0.39	0.12

Strong Order Book and Market Position

As of September 30, 2025, the company maintained a robust order book worth ₹327.57 crores, representing 3.30 times its FY25 total operating income. This order book is scheduled for execution over the next three to five years, ensuring medium-term revenue visibility for the company.

The company primarily focuses on naval (marine) orders, specializing in manufacturing and installation of HVAC systems for ships and submarines. Shree Refrigerations has established long-term relationships with prominent players including Garden Reach Shipbuilders and Engineers Limited, Mazagon Dock Shipbuilders Limited, and Goa Shipyard Limited.

Capital Structure and Liquidity Position

The company's capital structure remained comfortable with overall gearing improving to 0.39x as of March 31, 2025, compared to 0.67x in the previous year. This improvement was supported by repayment of term debt and accretion of profits to reserves.

In July 2025, Shree Refrigerations successfully launched an SME IPO, raising net proceeds of ₹80.00 crores, which strengthened its net worth to ₹196.19 crores as of September 30, 2025. The company's overall gearing further improved to a comfortable 0.12x by September 30, 2025.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.51%	+2.44%	-7.10%	+11.17%	+11.17%	+11.17%

Shree Refrigerations Limited has secured a major contract worth ₹3.26 crores from Naval Dockyard Mumbai, marking a significant business development for the engineering company. The order involves repair and refurbishment services for a 144 TR MBCAC (Marine Base Central Air Conditioning) plant.

Order Details and Specifications

The contract represents a substantial domestic order in the defense maintenance sector. The company will be responsible for comprehensive repair and refurbishment work on the specialized air conditioning system used by the naval facility.

Parameter:	Details
Awarding Entity:	Naval Dockyard Mumbai
Order Value:	₹3.26 crores
Nature of Work:	Repair and refurbishment of 144 TR MBCAC plant
Order Type:	Domestic contract
Service Completion Date:	August 2026

Contract Timeline and Execution

The project timeline spans until August 2026. This extended timeline reflects the complex nature of marine-grade air conditioning systems and the precision required for naval applications.

Corporate Governance and Compliance

Shree Refrigerations Limited has confirmed full compliance with regulatory requirements in securing this contract. The company has disclosed that:

No promoters, promoter groups, or group companies have any interest in Naval Dockyard Mumbai
The contract does not fall within related party transactions
All terms and conditions are conducted at arm's length

This transparency ensures adherence to SEBI regulations and maintains corporate governance standards for the listed entity.

Strategic Significance

The order represents a notable achievement for Shree Refrigerations Limited in the specialized defense maintenance sector. Working with Naval Dockyard Mumbai demonstrates the company's technical capabilities in handling complex marine air conditioning systems and establishes credentials in the defense sector.

The contract value of ₹3.26 crores represents a significant addition to the company's order book and reinforces its position in the industrial refrigeration and air conditioning segment. The successful execution of this project could potentially open doors for similar opportunities within India's defense infrastructure maintenance requirements.