Shree Refrigerations LtdQ1 FY26Aerospace & Defense

Shree Refrigerations Ltd

Q1 FY26 Earnings Call Analysis

Management growth scorecard

Revenue

Category 1

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Management targets a 40% CAGR in revenue over the next 4-5 years, aiming to reach INR1,000 crore by FY30-'31.
→FY26 revenue was INR153 crore, with current manufacturing capacity supporting up to around INR400 crore revenue.
→New greenfield facility adds 50,000 sq. ft expandable space, increasing total manufacturing to 80,000 sq. ft, expected to improve throughput and delivery cycles.
→Data centre cooling revenues expected to start contributing from FY28 onward, not included in FY27 guidance.
→Working capital improvements and bank funding/internal accruals to support growth without major equity fundraising.
→Exports are at a nascent stage; focus currently on marine and defence segments.
→Order book coverage is strong with 1.8x FY26 revenue, indicating robust future sales visibility.

Margin guidance

Category 2

→Shree Refrigerations targets a 40%-50% CAGR in revenue over the next 4-5 years, aiming for INR1,000 crore revenue by FY30-'31.
→EBITDA margins expected to remain between 20%-24%, with improvement anticipated as spares and service revenue increases to 15%-20%.
→PAT growth aligns with revenue growth, aiming for about INR120 crore PAT by FY30-'31.
→EPS increased from INR5 to INR6.47 post-IPO and with improved profitability.
→Working capital days reduced significantly from 570 to 370; further improvements expected, easing cash flows.
→Operating leverage benefits expected: other expenses to grow slower than revenues, helping margin expansion.
→Data centre revenue to start contributing from FY28, not included in FY27 guidance.
→Export plans at nascent stage, with potential upside not yet factored into near-term earnings.

3 more insights locked — sign up free to unlock

Fundraise plans

Yes

→No immediate external equity fundraising is indicated for growth; internal accruals and bank funding are expected to suffice.
→The major funding requirement going forward will be for working capital.
→Management is actively reducing working capital days to optimize fund usage.
→Current balance sheet is not leveraged, providing capacity to raise necessary funds for working capital via bank debt if required.
→Minor CapEx planned for business growth, with no major CapEx expected in the near term.
→IPO of INR95 crores was done earlier, with proceeds utilized effectively; no new equity fundraising announced.
→Overall, growth aspirations (40-50% CAGR over 4-5 years) will be funded by internal accruals, improving operations, and manageable bank borrowings without significant new equity issuance.

Order book

Yes

→As of March 31, the order book stood at approximately INR 270 crore.
→The company has a strong hit rate of nearly 100% in retrofit orders.
→New build projects have seen some tender losses, but retrofits remain strong.
→The existing order book includes major orders in HVAC, AC plant, and refrigeration plants.
→Market size in defence marine ecosystem and non-defence marine is around INR 3,000-3,500 crore over the next 2 to 2.5 years.
→Approximately 60-odd tenders are expected in the current year.
→Defence segment tender value expected to be around INR 1,000 crore in FY27, with a current 64% market share.
→The company aims for significant order inflows in FY27 supported by strong market demand and its position as a turnkey solutions provider.

Capex plans

Yes

- Total CapEx for Phase 1 at Hanbarwadi location is INR 25 crores; most of it done, plant to start June. - Hanbarwadi expansion adds 50,000 sq ft of manufacturing space; leased 20,000 sq ft facility to be closed June. - New facility is state-of-the-art, backward integrated, ISO, ZED Gold, and IRS certified. - No major CapEx expected in next 2-3 years; small CapEx will occur as business grows. - Data centre business tie-up with Smardt (6 months old); reference installation expected in FY27. - Major revenue from data centres anticipated from FY28 onwards. - Existing infrastructure can support up to INR 400 crore revenue. - Working capital requirements for growth to be funded by internal accruals and bank funding; balance sheet not leveraged. Overall, focus is on facility expansion and technology integration with controlled, moderate CapEx over medium term.

How does Shree Refrigerations Ltd rank vs peers in Aerospace & Defense?

Pro feature

1Shree Refrigerations Ltd

Rev 1Mar 2

See full Aerospace & Defense sector rankings

Unlock with Pro

Want more stocks like Shree Refrigerations Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio