KRN Heat Exchanger and Refrigeration Limited — Investor Meet, 10-11-2025: Analysts/Institutional Investor Meet/Con. Call Updates

KRN Heat Exchanger reported strong Q2 FY26 standalone financial results with total income of INR 227.22 Cr (+126% YoY) and PAT of INR 23.66 Cr (+95%). The financial results for the half-year also showed robust growth. Consolidated figures were lower due to inter-company sales.

Management is optimistic, citing strong HVAC/refrigeration industry demand, especially 20-25% commercial AC growth for the next decade. The new 6x capacity Neemrana facility, commissioned in May, targets 20% utilization this year and 50% next, driving future growth. Exports to North America and Europe are a key focus, aiming for 50% finned tube revenue in three years.

Strategic moves include acquiring Spare Refrigeration's bus AC division for technology and team, targeting INR 160 Cr revenue, and entering railway HVAC. The R&D lab (Thermotech) will aid new product development. Key growth drivers include data center cooling (targeting 50% of INR 1,500 Cr from a single large project) and bar & plate heat exchangers for railways. EBITDA margins are sustainable at 20%, with future benefits from PLI, RIPS, and favorable tax schemes. The outlook is confident, highlighting expanded capabilities and strategic diversification into high-growth, high-margin segments.