KRN Heat Exchanger and Refrigeration (KRN) Q1 26/27 earnings summary

Executive summary

• Consolidated Q1 FY27 revenue from operations was ₹25,231.70 lakh, up 118.87% YoY; PAT was ₹3,289.56 lakh, up 164.84%.

• Standalone revenue was ₹18,197.15 lakh, up 59.07% YoY; PAT was ₹1,866.84 lakh, up 19.02%.

• Export revenue rose 177% YoY, with products reaching customers in 14 countries; growth also reflected stronger domestic demand.

• Strategy focuses on evolving from heat exchangers to an integrated HVAC&R business, scaling manufacturing, localisation, backward integration and international reach.

Financial highlights

• Consolidated revenue from operations was ₹25,231.70 lakh versus ₹11,528.21 lakh in Q1 FY26; total income was ₹25,509.46 lakh and PBT ₹4,233.08 lakh.

• Standalone revenue from operations was ₹18,197.15 lakh versus ₹11,439.90 lakh in Q1 FY26; total income was ₹18,439.32 lakh and PBT ₹2,504.36 lakh.

• Consolidated EBITDA rose 178.85% to ₹49.06 crore; standalone EBITDA rose 24.67% to ₹24.67 crore.

• Consolidated EPS was ₹5.20 versus ₹2.00 in Q1 FY26; standalone EPS was ₹2.95 versus ₹2.52. Quarterly EPS was not annualised.

• FY26 consolidated revenue was ₹600.06 crore, EBITDA ₹112.48 crore and net profit ₹76.47 crore.

Outlook and guidance

• FY27 export target is ~₹200 crore versus ~₹100 crore in the prior year; fin-and-tube exports are targeted to reach ~50% of that business in 2–3 years, versus ~20% currently.

• The 80% capacity-utilisation and ₹2,000 crore revenue targets by FY28 remain unchanged; management expects quarter-on-quarter growth supported by orders in hand.

• HVAC is running at ₹5–6 crore per month; a large customer's supply is expected to start next month, with significant HVAC revenue expected in Q3–Q4.

• Management expects EBITDA margin above 20% at scale; PLI application could follow fin-and-tube revenue reaching ₹400 crore, expected by Q3 or early Q4.