Shree Refrigerations Ltd reported a robust financial performance for H1 FY2027, with consolidated revenue rising 84.9% to Rs 93.17 crore. Net profit surged 338.8% to Rs 6.89 crore. The company also announced the incorporation of a new subsidiary, Aquilon Limited, to expand its industrial chilling business, while noting a shift in accounting policy that boosted reported profits.
Shree Refrigerations H1 Profit Surges 339%
Consolidated revenue rose to Rs 93.17 crore (up 84.9%) and Net Profit reached Rs 6.89 crore (up 338.8%).
Reader Takeaway: Strong revenue growth drives bottom line, though accounting changes and new subsidiary costs warrant close monitoring.
What just happened
Shree Refrigerations Limited has declared its unaudited financial results for the half-year ended September 30, 2026. The company saw a massive jump in profitability across both standalone and consolidated metrics. The consolidated Profit After Tax (PAT) climbed to Rs 6.89 crore from Rs 1.57 crore in the same period last year. Revenue from operations also witnessed a sharp expansion, reaching Rs 93.17 crore compared to Rs 50.39 crore previously.
Why this matters
The results highlight a significant turnaround in the company's operational scale. Furthermore, the company incorporated a new wholly-owned subsidiary, Aquilon Limited, on October 15, 2026. With an authorized capital of Rs 5 crore, this entity will focus on industrial subzero temperature chillers, marking a strategic pivot toward specialized manufacturing segments.
What changes now
The company has adjusted its depreciation policy from the Written Down Value (WDV) method to the Straight-Line Method (SLM), effective April 1, 2026. This change reduced depreciation expenses by Rs 51.45 lakh during the half-year, which positively impacted the net profit figures. Additionally, the company recognized a one-time past service cost of Rs 43.76 lakh following government-mandated changes to Labour Codes regarding gratuity liabilities.
Risks to watch
Investors should consider the impact of the accounting policy shift, as the depreciation method change artificially inflates profit comparisons relative to prior years. Future performance will depend on the successful integration and execution of the newly formed Aquilon Limited and how its specialized industrial chiller products gain market traction.
What to track next
Watch for initial contribution data from Aquilon Limited in subsequent quarters and whether the company can maintain its current revenue growth momentum without further reliance on accounting policy adjustments.