Shree Refrigerations Ltd H1FY26 – Navy Orders, Cool Profits, and an HVAC That’s Hotter Than The Stock
1. At a Glance
Some companies make air coolers; Shree Refrigerations Ltd (SRL) makes chillers for warships. Yes, literal floating cities that shoot missiles and need their air-conditioning to be battle-grade. With a market cap of ₹712 crore and stock price hovering around ₹200, this Satara-based company has managed to make the HVAC industry sound like a defence thriller. Over the last few months, the stock has seen a mild chill with a -3.76% return in 3 months, but the heat is far from gone.
In H1FY26, SRL posted a sales figure of ₹98.2 crore and PAT of ₹6.16 crore, translating to a stock P/E of 116 — hotter than most boilers they sell. The ROCE of 17.8% and ROE of 15% show they aren’t just cooling spaces but warming investor hearts. However, with debtors standing at 352 days, you might want to send them a gentle reminder before expecting payment. The marine chillers segment continues to dominate with 83.86% revenue contribution, while government contracts make up a whopping 77% of total business. Clearly, this is not your average HVAC maker — it’s a defence-backed refrigeration warrior.
2. Introduction
If you ever thought “air-conditioning” was a boring business, Shree Refrigerations Ltd will change your thermostat settings permanently. Founded in 2006 and listed on BSE SME in 2025, this company took the humble cooling machine and turned it into a military-grade weapon of engineering. They don’t just chill milk in a café—they chill radar systems on warships.
While most HVAC firms brag about making your office bearable, SRL boasts of Indian Navy orders worth ₹1,000 million, a ₹231 crore order book, and active bids worth another ₹124 crore. From Mazagon Dock to Hindustan Shipyard, this company’s client list reads like the Defence Ministry’s contact sheet.
The funny part? Despite being so close to warships, their biggest battle is still with working capital. Debtor days of nearly a year mean the Navy gets cool cabins while SRL gets warm invoices. But when your Operating Profit Margin was 30.3% just two quarters ago, who cares about cash lag — they’re still laughing in chilled air.
3. Business Model – WTF Do They Even Do?
SRL’s business model is simple: make refrigeration systems so powerful that even submarines feel cozy. They design and manufacture chillers, marine HVAC systems, test equipment, and printing chillers. Unlike regular air conditioners that panic in humidity, these systems are built to survive the salty tears of the Arabian Sea.
Their Karad plant in Maharashtra has the capacity to produce 36 seawater-cooled AC plants, 36 air-cooled plants, and 180 industrial chillers annually. That’s not just production — it’s temperature diplomacy. The company is registered with Indian Navy directorates, which means every bolt, compressor, and fan blade passes warship-grade quality tests.
They cater to automotive, marine, print, pharma, and chemical industries, but make no mistake — the Navy is their favourite client, contributing over 83% of revenue. The rest? Civil chillers and fabrication work that barely adds spice to the main curry.
Their service division offers installation, testing, and training — because someone needs to explain to a sailor why his cabin AC now has more intelligence than a desktop PC.
4. Financials Overview
Half Yearly Results Locked: H1FY26 (Sep 2025)
Figures in ₹ Crores
Metric
Latest Half (Sep’25)
Prev Half (Mar’25)
Same Half (Sep’24)
YoY %
HoH %
Revenue
50.39
47.76
50.96
-1.1%
+5.5%
EBITDA
5.66
11.51
15.44
-63.3%
-50.8%
PAT
1.48
4.68
8.31
-82.2%
-68.4%
EPS (₹)
0.42
1.67
2.09
-79.9%
-74.8%
Commentary: The company’s half-year story is colder than its chillers. Revenue stayed stable, but profits melted faster than an ice cube in Chennai. Operating margin dropped from 30% to 11%, thanks to inflated costs and delayed project recognitions. Yet, even at ₹1.48 crore PAT, the Navy orders keep morale afloat. When your client is the Government of India, you can afford to chill — literally.
5. Valuation Discussion – Fair Value Range (for Education Only)
Let’s run the math.
EPS (TTM): ₹2.08
P/E method: Industry PE ~33.2; SRL’s current P/E ~116
👉 Fair value range by P/E = ₹2.08 × (33–45) = ₹69 – ₹94
EV/EBITDA method: EV = ₹721 Cr; EBITDA (TTM) = ₹17.17 Cr ⇒ EV/EBITDA = 42x, versus industry median of ~15x So, Fair Value Range by EV/EBITDA = ₹721 × (15 / 42) = ₹257 Cr enterprise value → roughly ₹72/share
DCF method: Assuming cash flow normalization and 15% ROE with 10% growth for 5 years → ₹75–₹100 range.
✅ Educational Fair Value Range: ₹70–₹100 per share. Disclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
If you thought refrigeration was cold, wait till you see SRL’s pipeline — it’s frozen with Navy orders. In FY25–H1FY26, the company received:
₹106.6 crore HVAC order from Hindustan Shipyard for five Fleet Support Ships.
₹19.6 crore turnkey project from Mazagon Dock for 14 Fast Patrol Vessels.
₹4.12 crore order from the Controller of Procurement (Mumbai).
₹3.57 crore unit cooler supply order for Vizag Material Organization.
MoU with Smardt via Trezor (Sept 2025) to develop data-centre chillers, targeting 10–15% incremental revenue in three years.
And as if that wasn’t enough, they’re regularly seen on defence conference panels like Atal Bharat Emerging Ideas Conference 2025 — because apparently, “HVAC for
