KRN Heat Exchanger and Refrigeration Ltd(KRN)

NSE: KRNBSE: 544263

₹ 1,029.3+1.09%refreshed 26 Oct, 12:30 pm ISTMarket cap: ₹ 6,738 crNext results: 29 Oct 2026Website: www.krnheatexchanger.comUpdated: 24 Oct 2026

About

KRN Heat Exchanger and Refrigeration Ltd manufactures heat exchangers and HVAC components - principally condenser coils and evaporator coils - for commercial air conditioning, refrigeration, data centres, railways and automotive applications. The company operates through a parent plant in Rajasthan and a wholly owned subsidiary, KRN HVAC Products Private Limited, which runs a newer, larger facility at Neemrana, Alwar, Rajasthan. On a consolidated basis KRN reported revenue of ₹600.06 cr and PAT of ₹76.47 cr in FY26, making it one of India's dedicated heat-exchanger manufacturers of meaningful scale.^[1][2][3]

Business segments

India segment: ₹500.6 cr revenue, 83.4% of FY26 consolidated sales, EBIT margin 20.7%.^[4]
Overseas segment: ₹99.46 cr revenue, 16.6% of FY26 consolidated sales.^[4]
The group operates as a single product segment - HVAC parts and accessories - across both geographies.^[2]

Products

Condenser coils were the largest product line at 60.74% of FY25 revenue (vs 55.01% in FY24); evaporator coils contributed 30.39% (vs 37.34% in FY24).^[2]
Other products include headers, copper parts, sheet metal parts, and - via the bus AC acquisition - complete bus air-conditioning assemblies.^[2][3]
After receiving Indian Railways approval following six-month field trials, bar-and-plate heat exchangers for railway electric engines are now part of the portfolio.^[5][2]

Operations and capacity

Parent plant (KRN Heat Exchanger): 104,948 sq ft facility, operating at near-full utilisation as of Q2 FY26.^[6][3]
KRN HVAC Products (subsidiary) at Neemrana, Alwar, Rajasthan: 840,127 sq ft facility, funded by IPO proceeds of ₹23,575.66 lakhs; ₹11,020.16 lakhs remained to be deployed as of FY25.^[6][2]
Total installed capacity at the parent was 1 million units per year in FY25; capacity utilisation was 84.09% for evaporator/condenser coils, 84.53% for headers/copper parts, and 85.77% for sheet metal parts.^[2]
New Neemrana facility reached only ~15% utilisation in its initial ramp-up during FY26; management targets 50% utilisation in FY27 and 80% in FY28.^[5]
Backward integration at the Neemrana facility covers sheet metal, FRP, tubing, and heat exchanger sub-components.^[7]

Key operating numbers

Export revenue share: 20.76% of consolidated revenue in Q1 FY27, up from 16.57% in FY26 and 15.69% in FY25.^[6][2]
Export revenue grew +177% YoY in Q1 FY27; products reached customers in 14 countries during the quarter.^[6]
Data centre end-market reached ~16% of FY26 revenue, with data centre share at ~18.7% in Q4 FY26 alone.^[5]
Opening export order book at the start of FY27 was ₹120 cr, including European, UAE, and North American orders.^[5]
Consolidated EBITDA margin: 19.44% in Q1 FY27 vs 15.26% in Q1 FY26 (+418 bps); standalone EBITDA margin was 13.56% in Q1 FY27 vs 17.30% in Q1 FY26 (-374 bps).^[6]

Customers and distribution

Export markets span 14 countries as of Q1 FY27, with established customers in North America, Europe, UAE, and Sri Lanka.^[6][3]
Domestic end-markets include commercial air conditioning OEMs, data centres, and railways; the company holds an L1 bidding position with at least one major data centre client.^[7]
Bus AC segment added 10 - 15 new customers following the Sphere acquisition, with regular supplies to two to three OEMs underway as of FY26.^[5]
KRN's landed price for exports is 15 - 20% below local US and European suppliers following the capping of US tariffs at 18% and near-zero European tariffs.^[7]

Expansion and capex

Investments in manufacturing capacity, localisation, and backward integration are ongoing as the stated strategic pillars for the next phase of growth.^[6]
Line-balancing capex of ₹30 - 40 cr is planned at the existing (parent) facility for FY27.^[5]
Remaining capex payable to vendors was ~₹25 cr as of Q2 FY26.^[3]
A PAN-India Bus AC service network of 20 - 25 centres was targeted for rollout within six to seven months of Q3 FY26.^[7]

Recent developments

KRN HVAC Products acquired the bus air-conditioning division of Sphere Refrigeration Systems via a business transfer agreement signed in Q2 FY26, expanding into the automotive HVAC segment.^[3]
Indian Railways approved KRN's bar-and-plate heat exchangers for electric engines after a six-month field trial completed by Q4 FY26; the company is now participating in railway tenders.^[5]
CMD remuneration revised to ₹1.26 cr p.a. and WTD remuneration to ₹84 lakh p.a., both effective 1 April 2026.^[8]
Consolidated operating cash flow was -₹113.80 cr in FY26 against net profit of ₹76.47 cr, as inventories rose to ₹272.91 cr (from ₹95.85 cr) and trade receivables to ₹174.71 cr (from ₹92.96 cr).^[6]

Market Cap

₹6,738 Cr

High / Low

₹1,676 / 590

Stock P/E

66.4

Price / Book

11.0

Book Value

₹92

EPS

₹12.3

No. of Shares

6.22 Cr

ROCE

16.0%

ROE

14.3%

OPM

17.0%

Debt / Equity

0.33

Sales

₹600 Cr

Net Profit

₹76 Cr

Promoter holding

65.7%

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