KRN Heat Exchanger And Refrigeration Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript KRN Heat Exchanger And Refrigeration Ltd filed with BSE on 20 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
KRN Heat Exchanger reported FY26 standalone total income growth of 57.36% to Rs.689.95 crores, with EBITDA up 19.41% and net profit up 42.11%. Management discussed the ramp-up of the new Neemrana HVAC facility, progress in data center, bus AC and export segments, and elevated inventory levels linked to a large UAE order and new product lines. The company also disclosed board approval for a QIP of up to Rs.500 crores, with the objective still under consideration.
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Numbers mentioned
Standalone total income: Rs.689.95 crores (FY26)
p. 4
“For FY2026, our standalone total income grew by 57.36% year-on-year to Rs.689.95 crores, while EBITDA increased by 19.41% to Rs.84.79 crores, and net profit rose by 42.11% to Rs.71.31 crores.”
Komal Yadav, page 4 of the filed PDF · View the filing
Standalone EBITDA: Rs.84.79 crores (FY26)
p. 4
“For FY2026, our standalone total income grew by 57.36% year-on-year to Rs.689.95 crores, while EBITDA increased by 19.41% to Rs.84.79 crores, and net profit rose by 42.11% to Rs.71.31 crores.”
Komal Yadav, page 4 of the filed PDF · View the filing
Consolidated total income: Rs.609.81 crores (FY26)
p. 4
“On a consolidated basis, total income stood at Rs.609.81 crores, up 38.06% year-on-year, with EBITDA growing by 59.52% to Rs.112.48 crores, and net profit increasing by 44.62% to Rs.76.47 crores.”
Komal Yadav, page 4 of the filed PDF · View the filing
Standalone total income: Rs.204.93 crores (Q4 FY26)
p. 4
“For Q4 2026 FY, standalone total income grew by 55.06% year-on-year to Rs.204.93 crores, with net profit rising by 22.69% to Rs.16.87 crores.”
Komal Yadav, page 4 of the filed PDF · View the filing
Consolidated total income: Rs.181.40 crores (Q4 FY26)
p. 4
“On the consolidated side, total income came in at Rs.181.40 crores, up 33.5% year-on-year, while EBITDA increased by 77.56% to Rs.33.55 crores, and net profit rose by 57.14% to Rs.23.36 crores.”
Komal Yadav, page 4 of the filed PDF · View the filing
Data center revenue share: 18.7% (Q4 FY26)
p. 6
“So, in Q4 we achieve around 18.7% from data center only.”
Santosh Kumar Yadav, page 6 of the filed PDF · View the filing
Export order book: Rs.120 crores plus
p. 6
“So, as of now we have order booking of almost Rs.120 crores plus for export, including data center order.”
Santosh Kumar Yadav, page 6 of the filed PDF · View the filing
Data center revenue share (full year): 16% (FY26)
p. 17
“So, complete fines layer we have around 16% of revenue from data center.”
Santosh Kumar Yadav, page 17 of the filed PDF · View the filing
Inventory days: two and a half months
p. 11
“Now it is around two and a half months I think.”
Santosh Kumar Yadav, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
New facility capacity utilization — 50% · FY27
stated firmly by Santosh Kumar Yadav
p. 5
“So, we are expecting this year, inclusive all products and new geometry, we will achieve 50% of capacity utilization from new facility.”
Santosh Kumar Yadav, page 5 of the filed PDF · View the filing
New facility capacity utilization — 80% · FY28
stated firmly by Santosh Kumar Yadav
p. 11
“So, this year our old facility is fully utilized and new facility this year we are able to achieve 50% and next year 80%.”
Santosh Kumar Yadav, page 11 of the filed PDF · View the filing
Export revenue — double compared to last year · FY27
stated firmly by Santosh Kumar Yadav
p. 6
“So, total order what I said last year we achieved around Rs.100 crores from export side only, and this year we are planning to achieve almost double compared to last year, including like all geographies, especially North America, Europe and UAE.”
Santosh Kumar Yadav, page 6 of the filed PDF · View the filing
Bus AC revenue target — Rs.150 crores
stated conditionally by Santosh Kumar Yadav
p. 15
“We already cracked the two, three OEMs and our regular supply has already started and we are in line on 15% of the market utilization.”
Santosh Kumar Yadav, page 15 of the filed PDF · View the filing
Capex for existing facility — Rs.30 crores to Rs.40 crores · next two years
stated as an aspiration by Santosh Kumar Yadav
p. 14
“So, still like paper is not in front of me, but roughly you can say I think maybe Rs.30 crores to Rs.40 crores will be there.”
Santosh Kumar Yadav, page 14 of the filed PDF · View the filing
RIFS incentive — 1.56% of the top line for new facility · next 10 years
stated conditionally by Santosh Kumar Yadav
p. 11
“Then we can have for next 10 years, we can have at least 1.56% of the top line for a new facility.”
Santosh Kumar Yadav, page 11 of the filed PDF · View the filing
Inventory normalization — within this running financial year
stated as an aspiration by Santosh Kumar Yadav
p. 10
“So, still, I think minimum it will take six months to normalize the thing.”
Santosh Kumar Yadav, page 10 of the filed PDF · View the filing
Quarterly performance trajectory — next eight quarters
stated firmly by Santosh Kumar Yadav
p. 15
“Yes, even I can say next eight quarters will be highest ever.”
Santosh Kumar Yadav, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said fin and tube products remain the mainstay while micro-channel and plate heat exchanger products are under development for future data center needs.
Answered by Santosh Kumar Yadav
Asked by Anuj Haria: Are new products being developed for liquid cooling AI data centers?
p. 5
“So, we are already working on micro-channel and by the end of this year or early next year, we will have this product in our portfolio.”
Santosh Kumar Yadav, page 5 of the filed PDF · View the filing
Management said nearly 100% of copper, aluminum and forex-driven cost changes are passed through on a quarterly basis.
Answered by Santosh Kumar Yadav
Asked by Anuj Haria: What percentage of raw material cost increases can be passed to customers?
p. 5
“With all three factors, we can be able to change with our customer and our price pattern or every term is like that only.”
Santosh Kumar Yadav, page 5 of the filed PDF · View the filing
Management cited backward integration strength in bus AC and rising data center order booking with long lead times.
Answered by Santosh Kumar Yadav
Asked by Aditya Sharma: What is the expected revenue contribution from bus AC and data center in upcoming quarters?
p. 6
“Last year, we achieved around Rs.10 crores from bus AC only.”
Santosh Kumar Yadav, page 6 of the filed PDF · View the filing
Management said the company does not compete with Chinese suppliers due to customization focus, and described UAE dispatch delays and freight cost pass-through.
Answered by Santosh Kumar Yadav
Asked by Vishad Kabra: How is the geopolitical environment affecting exports and margins given anti-dumping duty dependence?
p. 7
“So, in March month, we are not able to dispatch our dispatches to UAE customers, but now our dispatches already started.”
Santosh Kumar Yadav, page 7 of the filed PDF · View the filing
Management attributed the rise to undispatched UAE orders, unbilled exports, new business stocking requirements, and BIS-related stockpiling, expecting improvement over the year.
Answered by Santosh Kumar Yadav
Asked by Mihir Manohar: Why have inventory and receivables risen sharply, and when will they normalize?
p. 10
“So, hopefully you can see an improvement in this financial year.”
Santosh Kumar Yadav, page 10 of the filed PDF · View the filing
Management said the funds are mainly intended for working capital needs, with the exact objective still under board consideration.
Answered by Santosh Kumar Yadav
Asked by Kamlesh Bagmar: Why raise equity capital given expected internal cash generation and completed capex?
p. 14
“So, that is why we decided in our board we can maybe have some money through IPO especially for working capital but other objective also is under consideration.”
Santosh Kumar Yadav, page 14 of the filed PDF · View the filing
Management explained that the facility was only fully commissioned recently and customer approval processes delayed faster ramp-up, with acceleration expected going forward.
Answered by Santosh Kumar Yadav
Asked by Prateek Giri: Is the ramp-up of the new facility slower than expected?
p. 15
“So, now we shifted last week only to a new facility.”
Santosh Kumar Yadav, page 15 of the filed PDF · View the filing
Management said Vertiv's QMS audit was completed and passed, with drawing approvals pending before mass production begins.
Answered by Santosh Kumar Yadav
Asked by Tej Patel: What is the status of Vertiv approval and when will supply start?
p. 17
“We have approvals now from Vertiv because the QMS audit is also completed and we have results, so we passed in first-go only.”
Santosh Kumar Yadav, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical tension disrupting UAE dispatches and raising freight costs
p. 7
“So, in March month, we are not able to dispatch our dispatches to UAE customers, but now our dispatches already started. Our freight cost is increasing.”
Santosh Kumar Yadav, page 7 of the filed PDF · View the filing
BIS notification/import restrictions on inner groove tube affecting raw material availability
p. 10
“Other one is still BIS issue is in India. So, now in this month also like 28th of May is the last day for inner groove tube.”
Santosh Kumar Yadav, page 10 of the filed PDF · View the filing
Sharp and unexpected increases in copper and aluminum prices
p. 19
“Of course, slight improvement will be there, but honestly in the last two, three weeks in this copper and aluminum silver price is beyond the expectation because they sharply increase.”
Santosh Kumar Yadav, page 19 of the filed PDF · View the filing
Elevated inventory levels from unbilled exports and new business stocking requirements
p. 10
“So, that Rs.8 crores will add export in this quarter because from our side, we already dispatched in March only, but orders are not considered in sales because bill was not generated.”
Santosh Kumar Yadav, page 10 of the filed PDF · View the filing
Depreciation and overhead costs rising with new facility
p. 11
“On other side, we will have depreciation is quite high and overhead is now increasing.”
Santosh Kumar Yadav, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.