KRN Heat Exchanger and Refrigeration Q2 FY27 results: net profit up 100.4% to ₹36.11 crore, revenue up 109.9%

How did KRN Heat Exchanger and Refrigeration perform in Q2 FY27?

KRN Heat Exchanger and Refrigeration reported consolidated revenue from operations of ₹319.14 crore for Q2 FY27, against ₹152.07 crore in Q2 FY26 and ₹252.32 crore in Q1 FY27. The corresponding increases were 109.9% year on year and 26.5% sequentially. Total income was ₹326.62 crore, compared with ₹154.46 crore a year earlier.

EBITDA was ₹48.75 crore in Q2 FY27, compared with ₹30.26 crore in Q2 FY26 and ₹49.06 crore in Q1 FY27. The EBITDA margin was 15.3%, down 4.6 percentage points from 19.9% a year earlier and 4.1 percentage points from 19.4% in the previous quarter.

Profit before tax was ₹45.86 crore, compared with ₹26.94 crore in Q2 FY26 and ₹42.33 crore in Q1 FY27. Net profit was ₹36.11 crore, up 100.4% from ₹18.02 crore a year earlier and 9.8% from ₹32.90 crore in the previous quarter; basic EPS was ₹5.52.

What changed in KRN Heat Exchanger and Refrigeration's costs and profit?

Total expenses rose to ₹280.76 crore in Q2 FY27 from ₹127.52 crore in Q2 FY26, an increase of ₹153.24 crore. Cost of materials consumed was ₹247.15 crore, up ₹130.85 crore, while employee benefit expenses were ₹22.15 crore, up ₹11.88 crore.

Other expenses increased by ₹16.12 crore to ₹23.37 crore, depreciation and amortisation rose by ₹2.47 crore to ₹7.32 crore, and finance costs increased by ₹2.19 crore to ₹3.05 crore. These figures show where the higher operating costs were recorded.

Other income rose by ₹5.10 crore to ₹7.49 crore, while tax expense increased by ₹0.83 crore to ₹9.75 crore. There was no exceptional item in Q2 FY27. The filings did not state the reasons for the year-on-year changes in costs, other income or tax.

How did the first half of FY27 go?

For H1 FY27, KRN reported consolidated revenue of ₹571.45 crore, compared with ₹267.35 crore in H1 FY26, an increase of ₹304.10 crore or 113.7%. Total income was ₹581.72 crore, up ₹308.40 crore or 112.8% from ₹273.32 crore.

Profit before tax increased by ₹42.96 crore to ₹88.19 crore from ₹45.23 crore, while PAT rose by ₹38.57 crore to ₹69.01 crore from ₹30.44 crore. Basic EPS for the first half was ₹10.72, compared with ₹4.90 in H1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,379.80 crore, compared with ₹931.82 crore at 31 March 2026, and total equity was ₹984.26 crore against ₹573.99 crore. Borrowings declined to ₹153.18 crore from ₹187.31 crore, while cash rose to ₹141.34 crore from ₹9.99 crore.

Inventories increased to ₹379.52 crore from ₹272.91 crore, trade receivables to ₹308.95 crore from ₹174.71 crore, and trade payables to ₹209.98 crore from ₹158.23 crore. The board approved the unaudited consolidated results on 29 October 2026, and the statutory auditors carried out a limited review.

H1 FY27 operating cash flow was negative ₹132.84 crore, compared with ₹56.53 crore in H1 FY26. Investing cash flow was negative ₹37.64 crore against negative ₹52.72 crore, financing cash flow was ₹301.83 crore against negative ₹4.48 crore, and capital expenditure was ₹34.59 crore compared with ₹134.09 crore.

How has KRN Heat Exchanger and Refrigeration done over the last 8 quarters?

Revenue rose in each of the last five quarters on a year-on-year basis, while profit also rose in each of the last five quarters. Over the reported series, revenue increased from ₹111.47 crore in Q3 FY25 to ₹319.14 crore in Q2 FY27, and PAT increased from ₹13.73 crore to ₹36.11 crore.

The EBITDA margin bottomed at 14.2% in Q3 FY25 and peaked at 20.3% in Q3 FY26 before easing to 15.3% in Q2 FY27. Revenue and PAT reached their highest levels of the series in Q2 FY27, but the margin moved lower from 19.4% in Q1 FY27.

Which businesses drove the quarter?

India revenue was ₹245.75 crore in Q2 FY27, up 92.1% from ₹127.91 crore in Q2 FY26. Segment EBIT was ₹48.91 crore, compared with ₹27.80 crore, and the segment reported an EBIT margin of 19.9%.

Overseas revenue rose 203.8% to ₹73.38 crore from ₹24.15 crore in Q2 FY26. Segment EBIT was ₹0.0 crore, unchanged from the year-ago quarter, and the reported EBIT margin was 0.0%.

What else did the company announce?

The board approved the unaudited consolidated and standalone financial results for the quarter and half year ended 30 September 2026 on 29 October 2026. The results were recommended by the Audit Committee and carried out a limited review by the statutory auditors.

The company completed a qualified institutional placement during the quarter ended 30 June 2026. The Fund-Raising Committee approved the allotment of 33,01,886 fully paid equity shares of face value ₹10 each at an issue price of ₹1,060.00 per equity share.

The filing also stated that IPO proceeds of ₹31,111.66 lakhs had been fully utilised as of 30 September 2026, including ₹23,575.66 lakhs invested in KRN HVAC Products Private Limited for the proposed project and ₹7,536.00 lakhs used for general corporate purposes. The same-day filings did not announce a dividend or new appointment.

What did KRN Heat Exchanger and Refrigeration's management say?

Management said H1 FY27 growth was broad-based across customers, products and geographies. It said exports were 22.01% of H1 revenue, with the USA leading, while data-centre cooling, liquid cooling and bus AC were emerging as growth areas. Management also cited entry into bus AC OEM supplies, customer additions and expanded Neemrana manufacturing capacity.

The investor presentation did not provide quantified forward guidance. Management highlighted higher finance costs, lower EBITDA and PAT margins, negative FY26 operating cash flow, higher inventories and receivables, increased current borrowings and lower cash as risks. The presentation showed FY26 operating cash flow of negative ₹113.80 crore.

Management’s stated priorities included expanding the product portfolio and manufacturing capacity, growing exports and serving new cooling applications. The filing said further growth and expansion faced risks involving economic conditions, competition, implementation of strategy, technological change, market preferences and cash flows; it did not quantify these risks or provide analyst-question answers.

How did KRN Heat Exchanger and Refrigeration shares react?

The filing appeared after market hours. The stock was unchanged after 5, 15 and 30 minutes, then closed 4.6% lower on the reaction day from its pre-results close. By the next day’s close, it was down 9.3% from the pre-results close.

On the reaction day, the Nifty Microcap 250 fell 2.5%, while the stock fell 4.6%. By the next day’s close, the index was down 1.1% from the relevant close and the stock was down 9.3%. No industry median or five-session reaction was available for comparison.

Earlier reaction-day moves were mixed: the stock rose 4.9% on 12 August 2026 and 7.9% on 6 February 2026, fell 0.9% on 14 May 2026 and 4.2% on 1 August 2025, and also posted smaller moves on the other listed result dates.