KRN Heat Exchanger and Refrigeration posted strong FY26 results with a 38% revenue jump to Rs 600 crore and a 45% rise in net profit to Rs 76 crore. The company scaled production via its new Neemrana facility and successfully raised Rs 350 crore through a QIP to support growth. While profitability is rising, investors should track the integration of its newly acquired bus air-conditioning business.
KRN Heat Exchanger FY26 Net Profit Hits Rs 76.47 Crore
Revenue from operations reached Rs 600.06 crore, up 38.06% year-on-year.
Reader Takeaway: Strong operational growth and capacity expansion are balanced by commodity price sensitivity and new facility ramp-up risks.
What just happened
KRN Heat Exchanger and Refrigeration Limited announced robust financial results for FY 2025-26. The company reported a total income of Rs 609.81 crore, representing a 38.06% increase over the previous fiscal year. Net profit climbed 44.62% to Rs 76.47 crore, while EBITDA grew by 59.52% to Rs 112.48 crore. The earnings per share (EPS) for the year stood at Rs 12.30.
Why this matters
The company has successfully transitioned from a heat exchanger manufacturer to a broader system assembler. This is highlighted by the acquisition of the bus air-conditioning division of Sphere Refrigeration Systems and the commissioning of a new manufacturing unit in Kolila, Neemrana. The new facility is designed to increase capacity six-fold to over 6 million units annually, positioning the firm to handle larger order books.
Strategic Developments
In mid-2026, KRN completed a Rs 350 crore Qualified Institutional Placement (QIP). Participation from global investors, including the Abu Dhabi Investment Authority (ADIA), underscores institutional confidence in the company’s scalability. Additionally, Mr. Pawan Nawal was appointed as the new CFO effective May 15, 2026.
Risks to watch
The company remains vulnerable to price fluctuations in raw materials like copper, aluminum, and steel. Furthermore, the company faces execution risk in hitting target capacity utilization at the new Neemrana site. Regarding governance, the company disclosed a minor penalty of Rs 82,000 each to the BSE and NSE, incurred due to a 41-day delay in constituting its Risk Management Committee.
What to track next
Investors should watch for the integration progress of the bus AC business and the dividend policy shift in future board meetings, as no dividend was proposed for FY 2025-26. The 9th Annual General Meeting is scheduled for September 25, 2026.