KRN Heat Exchanger and Refrigeration Ltd

- 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.

- 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.

- 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.

- 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.

- 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.