KRN Heat Exchanger and Refrigeration (KRN) Q2 26/27 earnings summary

Executive summary

• H1 FY27 consolidated revenue rose 113.75% YoY to ₹57,145.28 lakh and PAT increased 126.68% to ₹6,900.67 lakh, supported by growth across customers, products and geographies.

• Neemrana expansion, broader product capabilities and customer qualification support growth plans; management expects FY27 revenue to track above prior guidance, subject to external risks.

Financial highlights

• Consolidated Q2 FY27 revenue from operations was ₹31,913.58 lakh (+109.86% YoY), EBITDA ₹48.75 crore (+61.10%) and PAT ₹3,611.12 lakh (+100.38%).

• Consolidated H1 FY27 revenue was ₹57,145.28 lakh (+113.75%), EBITDA ₹97.81 crore (+104.40%) and PAT ₹6,900.67 lakh (+126.68%).

• H1 exports revenue rose 192% YoY to ₹125.8 crore, or 22.01% of sales versus 16% in H1 FY26.

• Standalone Q2 revenue fell to ₹16,706.54 lakh from ₹22,342.50 lakh YoY and PAT to ₹1,555.69 lakh from ₹2,365.67 lakh; H1 PAT was ₹3,422.53 lakh versus ₹3,934.23 lakh.

Outlook and guidance

• FY27 revenue could exceed prior ₹1,200 crore guidance and reach ₹1,250 crore or higher; exports are expected near ₹250 crore versus prior ₹200 crore guidance, subject to force majeure, U.S. tariffs and export disruption.

• Q3 margins are expected near Q2 levels; Q4 could improve by 1–2% as revenue, exports and operating leverage rise.

• Export revenue is expected to grow 60–80% next year; the 50% export-mix target applies to Fin and Tube Heat Exchangers, not total revenue.

• Capacity utilization targets are ~50% in FY27 and 80% in FY28; management sees at least 30% growth after next year and plans a Bengaluru facility.