KRN Heat Exchanger and Refrigeration Ltd
KRN Heat Exchanger and Refrigeration Q2 FY26 earnings call: Revenue & Margins
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
The short version
The new manufacturing facility capacity is extended 6x; expected revenue ramp-up is gradual. The company aims to improve PAT by at least 1% to 1.5% over the next two to three years despite increasing depreciation and overheads.
From KRN Heat Exchanger and Refrigeration Ltd's Q2 FY26 earnings-call transcript · updated 26 Aug 2026.
Revenue & Sales Performance
- The new manufacturing facility capacity is extended 6x; expected revenue ramp-up is gradual.
- Target to achieve 20% capacity utilization of the new facility in FY '26 and 50% in FY '27.
- Existing facility operates at near full capacity.
- Total company revenue potentially around INR 750-800 crores in FY '26 considering new and existing facilities.
- New business segments like bus air conditioning, bar and plate heat exchangers, and railway HVAC expected to contribute growth.
- Industry growth in commercial HVAC expected at ~20% CAGR for the next 10 years.
- Export revenue targeted to reach 50% of total revenue in three years, with focus on North America, Europe, and UAE.
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Profitability & Margins
See what KRN Heat Exchanger and Refrigeration Ltd said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Current capex on new facility totals around INR 350 crores, with approximately INR 25 crores still pending payment to vendors.
- The new facility, which commenced operations on May 30, 2025, expanded capacity by 6 times.
- The company is targeting 20% utilization of the new capacity in FY 2026 and 50% utilization in FY 2027.
- Additional capex plans for FY 27 and beyond are under consideration and expected to be finalized within 4-5 weeks from November 2025.
- Solar power investments are underway with two types: in-house consumption and on-grid system; both expected operational within two weeks from November 2025, providing approximately 0.5% revenue cost savings.
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Top-ranked in Industrial Products
Ranked on what management guided this quarter
Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.
Fundraising & Capital Structure
See what KRN Heat Exchanger and Refrigeration Ltd said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- The company does not maintain a project-based order book.
- Orders are considered as rolling orders rather than booked projects.
- No specific outstanding order book figure was provided during the call.
- New customers were added significantly, with an estimated 40 to 50 new customers across various product components in the last quarter.
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KRN Heat Exchanger and Refrigeration Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest (Q4 FY26): revenue ₹179 Cr, net profit ₹23 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.
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What KRN Heat Exchan's management said in earlier quarters
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Frequently Asked Questions
What were KRN Heat Exchanger and Refrigeration Ltd Q2 FY26 results?
The new manufacturing facility capacity is extended 6x; expected revenue ramp-up is gradual. The company aims to improve PAT by at least 1% to 1.5% over the next two to three years despite increasing depreciation and overheads.
What is KRN Heat Exchanger and Refrigeration Ltd share price analysis?
KRN Heat Exchanger and Refrigeration Ltd currently shows a neutral. 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?
Current capex on new facility totals around INR 350 crores, with approximately INR 25 crores still pending payment to vendors.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.