KRN Heat Exchanger & Refrigeration Ltd Q2FY26 Concall Decoded: “Turning Up the Heat, Cooling the Margins”

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 faster and prettier 😏.)

“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