KRN Heat Exchanger and Refrigeration Limited reported a strong financial performance for FY2026, marked by a 57.36% year-on-year growth in standalone total income to ₹689.95 crore. The company is actively diversifying its portfolio into data centers, bus AC, and industrial cooling. Management remains optimistic about future growth, driven by new facility ramp-ups, increasing capacity utilization, and significant export potential, despite current challenges related to raw material volatility and geopolitical shifts.
Financial Highlights of FY26
For the fiscal year 2026, KRN Heat Exchanger showcased impressive growth across its core business. The company’s standalone total income reached ₹689.95 crore, reflecting a 57.36% increase over the previous year. EBITDA grew by 19.41% to ₹84.79 crore, while net profit rose by 42.11% to ₹71.31 crore. On a consolidated basis, the company reported total income of ₹609.81 crore, up 38.06% year-on-year, with a robust EBITDA growth of 59.52%.
Strategic Diversification and Operational Growth
The company is transitioning from a component supplier to an integrated solution provider. By expanding into sectors such as Data Centers, Industrial Cooling, and Bus Air Conditioning, KRN is building long-term business stability. Management highlighted that the new HVAC facility is currently in a ramp-up phase and is expected to reach 50% capacity utilization in FY27, further scaling to 80% in the following year.
Export Markets and Future Outlook
Export remains a primary growth driver, with a strong presence in the U.S., Europe, and the UAE. The company has secured an export order book of over ₹120 crore. To mitigate risks related to raw material prices, the company maintains a quarter-on-quarter pricing mechanism, allowing it to pass on approximately 100% of fluctuations in copper and aluminum LME and currency changes to its customers. The management is also exploring future capital requirements to support working capital needs, with a potential QIP approved for up to ₹500 crore.
Focus on Innovation
To cater to the evolving needs of the data center industry, KRN is actively developing micro-channel heat exchangers and Cooling Distribution Units (CDU). Furthermore, the company has recently received railway project approvals, positioning it to capture emerging opportunities in the transportation segment as it moves toward full-system manufacturing for Indian Railways.
Source: BSE
