Any current/future new fundraising through debt or equity?

As of the November 6, 2025 call, the management did not provide detailed guidance on future capital expenditure or fundraising plans. They mentioned that the current pending capex is around INR 25 crores out of a total INR 350 crores. Future capex plans for FY26 and FY27 are still under consideration and will be communicated after 4 to 5 weeks. No explicit mention of new fundraising through debt or equity was made during the call. The management emphasized existing investments and pending payments to vendors but did not indicate the need for immediate new fundraising.

Any current/future capex/capital investment/strategic investment?

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 week

Future growth expectations in sales/revenue/volumes?

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

Future growth expectations in earnings/operating earnings/profits/EPS?

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. New facility ramp-up targets: ~20% capacity utilization in FY26 and 50% in FY27, potentially boosting revenues and profits. EBITDA margin guidance: Sustainable around 20%, with minor quarter-to-quarter fluctuations due to raw material price pass-through. Incentives from REITs, PLI, and new facility-related tax benefits at 15% expected to further enhance profitability. Industry growth expected at 20% CAGR, commercial HVAC segment showing robust expansion

Current/ Expected Orderbook/ Pending Orders?

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. Sales geography remains largely the same with some recent expansion to Sri Lanka. The company focuses on ongoing supply to existing customers and new customers in existing geographies.

KRN Heat Exchanger and Refrigeration LtdQ3 FY26

KRN Heat Exchanger and Refrigeration Ltd Q3 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,468P/E: 103.9Market Cap: ₹7.9K Cr

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→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.
→Capital expenditure pending around INR 25 crore, with total new facility capex about INR 350 crore.
→EBITDA margins aimed to sustain around 20%, with potential improvement due to incentives and tax benefits from new facility.

Margin guidance

Category 3

→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.
→New facility ramp-up targets: ~20% capacity utilization in FY26 and 50% in FY27, potentially boosting revenues and profits.
→EBITDA margin guidance: Sustainable around 20%, with minor quarter-to-quarter fluctuations due to raw material price pass-through.
→Incentives from REITs, PLI, and new facility-related tax benefits at 15% expected to further enhance profitability.
→Industry growth expected at 20% CAGR, commercial HVAC segment showing robust expansion, supporting company growth.
→Export revenue target: 50% share in three years, with international demand particularly in North America and Europe.
→Acquisition of bus air conditioning technology expected to open new market segments (bus and railway HVAC), contributing to future growth.

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Fundraise plans

→As of the November 6, 2025 call, the management did not provide detailed guidance on future capital expenditure or fundraising plans.
→They mentioned that the current pending capex is around INR 25 crores out of a total INR 350 crores.
→Future capex plans for FY26 and FY27 are still under consideration and will be communicated after 4 to 5 weeks.
→No explicit mention of new fundraising through debt or equity was made during the call.
→The management emphasized existing investments and pending payments to vendors but did not indicate the need for immediate new fundraising.

Order book

→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.
→Sales geography remains largely the same with some recent expansion to Sri Lanka.
→The company focuses on ongoing supply to existing customers and new customers in existing geographies.

Capex plans

Yes

→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.
→The company acquired a bus air conditioning technology company to enhance backward integration and future revenue growth, aiming at INR 160 crores revenue from this segment next year.
→New facility investments include REITs, PLI incentives, and income tax benefits contributing to improved profitability.

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