KRN Heat Exchanger and Refrigeration Limited has informed the Exchange about Transcript
KRN · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
KRN Heat Exchanger reported Q1 FY26 consolidated total income of INR118.86 crores, EBITDA of INR17.59 crores (15.26% margin), and net profit of INR12.42 crores (10.45% margin). Standalone performance was stronger with revenue up 18.65% YoY to INR117.14 crores, EBITDA margin at 17.30%, and net profit growing 34.85% to INR15.69 crores. Export revenue surged 39% YoY to INR18.89 crores (16.4% of sales). The company commenced commercial operations at its new Neemrana manufacturing facility on May 31, 2025, and secured PLI scheme approval worth INR141.72 crores. Management expects Q2 to remain weak due to new plant ramp-up costs, with meaningful production starting only from Q3 FY26. Capacity utilization at the new plant is targeted at 20-25% in FY26, ~50% in FY27, and ~80% over three years, with exports targeted to reach 50% of sales within three years.
Near-term margins and earnings will remain under pressure through Q2 FY26 due to new facility ramp-up costs (employee, depreciation, interest of ~INR4 crores already in Q1), but the stock could see re-rating once production at Neemrana picks up from Q3 onwards and PLI/RIPS incentives flow in. Investors should expect margin improvement of 1-2% only from FY27, not FY26.