BSEShree Refrigerations LtdMediumNeutral
Announced Tue, 26 May · 12:09 IST

Investor Presentation for the Earnings Conference Call H2 & FY26 Financial Results.

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedInvestor Communications View source PDF

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AI summary

Shree Refrigerations Ltd reported strong FY26 results with revenue of INR 1,535 million (up 55.5% YoY) and net profit of INR 214 million (up 64.7% YoY). H2FY26 was particularly strong with revenue of INR 1,032 million (up 116% YoY) and net profit of INR 199 million (up 325.5% YoY). The company is a defence-focused manufacturer of marine-grade HVAC and refrigeration systems for the Indian Navy. Cash flow from operations turned positive in FY26, and the working capital cycle improved significantly from ~570 days to ~370 days. The unexecuted order book stands at INR 2,707.7 million (1.8x FY26 revenue), providing strong revenue visibility. Management guided for ~40% CAGR over the next 3-5 years and targets EBITDA margins of 20-22%. The company is expanding into data centre cooling through a partnership with Smardt (Canada) for oil-free chillers.

Likely market impact

The company demonstrated exceptional execution with H2FY26 margins recovering to 26.3%, validating strategic investments. The large order book and guidance for ~40% CAGR suggest strong growth ahead. However, full-year EBITDA margins declined to 21.4% from 27.3% in FY25 due to capacity investments. The expansion into data centre cooling and continued defence spending provide structural tailwinds.