KRN Heat Exchanger and Refrigeration Ltd

Q1 FY27Industrial Products

KRN Heat Exchanger and Refrigeration Ltd Q1 FY27 Results & Concall Highlights: Revenue, Margins & Order Book

Q1 FY27 earnings call: what management guided on revenue, margins and order book.

Price₹1,610

Market cap₹9.7K Cr

P/E100.1

Updated29 Aug 2026

Read4 min read

What the Q1 FY27 call signalled

4 of 5 strong

RevenueRank 2

MarginRank 3

CapexYes

FundraiseYes

Order bookYes

The short version

Capacity utilization is projected to reach 80% by FY28, targeting approximately INR 2,000 crore in revenue. KRN aims to increase revenue to approximately INR 2,000 crores by FY '28, scaling over 3x from current levels.

From KRN Heat Exchanger and Refrigeration Ltd's Q1 FY27 earnings-call transcript · updated 29 Aug 2026.

Revenue & Sales Performance

Rank 2

Capacity utilization is projected to reach 80% by FY28, targeting approximately INR 2,000 crore in revenue.
Export business is expected to nearly double from INR 100 crore last year to around INR 200 crore this year, with 50% export contribution targeted in fin and tube segment in 2-3 years.
Planned INR 100 crore capex within one year for new facilities in Bangalore and nearby locations to support bus air conditioning and railway HVAC segments; initial revenue shift expected post-FY29.
EBITDA margin expected to remain strong at 20%+ as scale increases with PLI incentives supporting short term and RIPS for the next 10 years.
Working capital and interest costs likely stable for next two years due to QIP funding; incremental working capital requirements will be evaluated after 6-12 months.
Continued growth supported by diversified product portfolio and expanding international markets including North America and Europe.

Profitability & Margins

KRN aims to increase revenue to approximately INR 2,000 crores by FY '28, scaling over 3x from current levels.
EBITDA margins are expected to be around 20%+ on a sustainable basis, potentially reaching 22-23% occasionally.
The company projects doubling exports from INR 100 crores last year to INR 200 crores this year, with a target of 50% export share in fin and tube business within 2-3 years.
Plans include INR 100 crore capex for expanding facilities supporting new product lines such as bus AC and railway HVAC systems by FY '28.
Management expects stable interest costs for FY '27 and FY '28 due to QIP proceeds sufficient for working capital for next two years.
Profitability and margins benefit from incentives under PLI and RIPS schemes, supporting earnings growth.
The company aims for continuous quarter-on-quarter growth supported by diversified product portfolio and expanding international presence.

See what KRN Heat Exchanger and Refrigeration Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

Yes

KRN Heat Exchanger and Refrigeration plans to invest around INR 100 crores in capex within the next year.
This capex involves two plots: one in Bangalore and another nearby, primarily for bus air conditioning and railway HVAC system expansion.
The new Bangalore facility aims to service nearby customers, improving logistics and reducing transportation damages, with operations expected to start within a year.
This capex will initially transfer existing business, so no immediate revenue increase, but once utilization increases, additional revenue will be generated.
No major expansion plans beyond this INR 100 crore capex, except a potential 10-15% increase in capacity in Bangalore.
Management highlighted they will continue investing capex from profits.
Cash pile expected to be INR 300-500 crores, parts will be used for capex; no definitive plans shared for large cash accumulation.

Top-ranked in Industrial Products

Ranked on what management guided this quarter

5x potential

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3₹1.4K Cr

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Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

- Management indicated no immediate plans for new debt fundraising for the next two years, supported by sufficient QIP (Qualified Institutional Placement) funds received recently. - The current working capital and profits are expected to suffice for the planned growth and capex. - Incremental interest cost is not anticipated to rise in FY ’27 and FY '28 due to adequate liquidity from the QIP. - Capex of around INR100 crores is planned (land, building, machinery), primarily for expansion in Bangalore and a nearby location, funded from profits. - No major equity fundraising plans were mentioned; focus is on utilizing existing funds and profits effectively. - If growth accelerates beyond current projections, management will reassess the need for additional funds. In summary, no immediate fundraising plans via debt or equity, but flexibility remains if growth demand changes.

See what KRN Heat Exchanger and Refrigeration Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

Yes

- The management did not provide an explicit current or expected order book figure during the call. - It was mentioned that order book remains strong with confidence in quarter-on-quarter growth. - New orders include 29 new customers added in the last quarter across bus AC, export, and domestic segments. - For railways, a recent tender participation is at L1 position, with nominations expected within 1-2 weeks. - Order book supports the planned revenue scale-up to INR 2,000 crores by FY ‘28. - The company is confident of continuing growth based on current order momentum and diversified customer base. - QIP funding supports working capital needs for next two years, aligned with order book growth. (Note: No exact quantitative order book number was disclosed in the transcript on page 14 or nearby pages.)

KRN Heat Exchanger and Refrigeration Ltd — Quarterly revenue & net profit

Revenue Net profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹179 Cr, net profit ₹23 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

Full financials →

What KRN Heat Exchanger and Refrigeration Ltd's management said in earlier quarters

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Simplex Castings Ltd (Q1 FY27)
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Frequently Asked Questions

What were KRN Heat Exchanger and Refrigeration Ltd Q1 FY27 results?

What is KRN Heat Exchanger and Refrigeration Ltd share price analysis?

KRN Heat Exchanger and Refrigeration Ltd currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 100.1 with a market cap of ₹9,702 Cr. Investors should review the full earnings analysis for detailed insights.

Is KRN Heat Exchanger and Refrigeration Ltd planning capital expenditure?

KRN Heat Exchanger and Refrigeration plans to invest around INR 100 crores in capex within the next year.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.