1. Opening Hook
When KRN’s management says they’re “firing on all cylinders,” they actually mean compressors. The company’s Q2FY26 results came in hotter than their furnaces — revenue more than doubled, profits nearly did too, and the CFO didn’t even have to fake enthusiasm. With a ₹350-crore new facility now online and exports sizzling from UAE to the U.S., KRN is quietly becoming India’s HVAC dark horse. The CMD even hinted at data centres, buses, and railways — basically cooling everything from Google servers to sleeper coaches. Read on — because this one’s a story of metal, margins, and a management that’s finally sweating for the right reasons.
2. At a Glance
- Standalone Revenue ₹227.2 crore (+126%)– Growth so strong, even copper prices stood up and clapped.
- Standalone EBITDA ₹29.6 crore (+69%)– Margins holding steady despite expansion heat.
- Standalone PAT ₹23.7 crore (+95%)– Almost doubled, clearly someone’s counting coils right.
- Consolidated Revenue ₹154.5 crore (+67%)– Intercompany sales made the numbers play peekaboo.
- Consolidated PAT ₹18 crore (+46%)– Subsidiary still warming up — literally.
- New Facility CapEx ₹350 crore– 6x capacity, 6x expectations, 0x chill.
- CRISIL Rating: A- (Stable)– Bankers finally stopped sweating too.
3. Management’s Key Commentary
“We achieved 126% YoY growth on standalone basis.”(Translation: We broke the Excel chart limits.)
“The Neemrana plant is improving delivery timelines and quality.”(Read: We can now make coils fasterandprettier 😏.)
“We’ve acquired a bus air-conditioning division.”(From buses to data centres — anything that breathes hot air is fair game.)
“The export share is rising with strong traction from UAE, USA, and Canada.”(Who knew cooling could be India’s next export story?)
“New subsidiary Thermotech Lab to handle R&D and product testing.”(We now test our heat instead of guessing it.)
“PLI and RIPS benefits to kick in next year.”(Translation: Government subsidies — the sweetest coolant for margins.)
“We see 20–25% CAGR in commercial HVAC over the next decade.”(That’s a lot of chilled growth, assuming no one pulls the plug on the grid.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Change | Sarcastic Take |
|---|---|---|---|---|
| Standalone Revenue (₹ Cr) | 227.2 | 100.5 | +126% | Management turned copper into gold |
| Standalone EBITDA (₹ Cr) | 29.6 | 17.6 | +69% | Heat exchanger, meet profit exchanger |
| Standalone PAT (₹ Cr) | 23.7 | 12.1 | +95% | Half the heat, double the profit |
| Consolidated Revenue (₹ Cr) | 154.5 | 92.3 | +67% | Intercompany tango confused the spreadsheet |
| Consolidated PAT (₹ Cr) | 18 | 12.3 | +46% | Cooling India, warming shareholders |
| H1FY26 Consol Revenue (₹ Cr) | 273.3 | 190 | +44% | Growth pipeline pressurized nicely |
| EBITDA Margin | 19.6% | 18.9% | +70 bps | Smooth under pressure |
| Capacity Utilization | 100% (old), 20% (new) | — | — | The new plant’s still stretching its coils |
(Copper up, aluminum high, but EBITDA cooler than expected — that’s how you manufacture comfort.)
5. Analyst Questions
Q:“Why standalone higher than consolidated?”A:“Intercompany sales for raw material transfers.”(A.k.a. subsidiaries still waiting for their first paycheck.)
Q:“Any growth guidance?”A:“No numbers, please — SEBI watching.”(But the 6x capacity screams ₹700–800 crore potential.)
Q:“Export target still 50% in 3 years?”A:“Yes, we even hired a Europe-based sales guy.”(Nothing says global like a sales rep with a Schengen visa.)
Q:“What about the bus HVAC acquisition?”A:“Bought mainly for tech and team.”(Translation: Brains, not balance sheet.)
Q:“Any data centre orders?”A:“Expect 50% share in the ₹1,500 crore Vizag cooling project.”(When Google’s servers run cool, you’ll know who to thank.)
6. Guidance & Outlook
Management didn’t give formal guidance (again), but the tone screamed “full throttle.” FY26 is about stabilizing the new plant (20% utilization) and hitting 50%
