KRN Heat Exchanger and Refrigeration Limited delivered a robust financial performance for the year ended March 31, 2026. The company achieved a consolidated revenue of ₹600.06 crore, representing a 38% year-on-year growth. Profitability also witnessed significant improvements, with EBITDA increasing to ₹112.48 crore and a healthy EBITDA margin of 18.74%. The company continues to scale its operations through a new manufacturing facility and strategic entry into the Bus AC market.
Financial Performance Highlights
For the fiscal year FY26, the company reported impressive growth across key metrics. Consolidated revenue reached ₹600.06 crore, up 38.06% compared to FY25. EBITDA followed a similar growth trajectory, surging 59.52% to ₹112.48 crore, with a strengthened margin of 18.74%. Net profit for the year stood at ₹76.47 crore, marking a 44.62% increase over the previous year, with an EPS of ₹12.30.
Strategic Growth and Infrastructure
The company’s growth is underpinned by the operational ramp-up of its new Plant II, which offers 6x the existing capacity. With a capital expenditure of ₹350 crore, this facility is designed to meet rising demand in both domestic and international markets. Management highlighted that this capacity expansion is critical for achieving a combined peak revenue potential of ₹2,250–2,850 crore.
New Market Entry: Bus AC and Railway HVAC
A key milestone in FY26 was the asset-and-team acquisition of the Bus AC division from Sphere Refrigeration Systems. This move provides a strategic entry into the ₹1,000 crore+ pan-India Bus AC market. The company has set a ₹160 crore revenue target for this segment in FY27, with a clear roadmap to eventually penetrate the railway coach HVAC market.
Global Reach and Outlook
KRN has successfully expanded its footprint, now serving over 200 global customers across 14 countries. Exports accounted for 16.57% of revenue in FY26, with the UAE and USA acting as major drivers. Looking ahead, the company is focused on sustaining this momentum through high-margin product categories, operational leverage, and anticipated benefits from PLI and RIPS incentive schemes, which are expected to further boost profitability in FY27.
Source: BSE
