KRN Heat Exchanger Q1 FY27 Results: Revenue More Than Doubles to ₹252 Crore, Profit Jumps Over 100%

KRN Heat Exchanger and Refrigeration Limited (KRN) has started FY27 on a strong note, reporting a sharp year-on-year increase in revenue and profitability for the quarter ended June 30, 2026.

The company, which manufactures fin-and-tube heat exchangers for the HVAC&R (Heating, Ventilation, Air Conditioning and Refrigeration) industry, reported consolidated revenue from operations of ₹252.32 crore, compared with ₹115.28 crore in Q1 FY26.

Consolidated profit before tax (PBT) increased to ₹42.33 crore from ₹20.96 crore, while profit attributable to the group stood at approximately ₹32.75 crore.

The Board approved the unaudited standalone and consolidated financial results on August 12, 2026. The results were subject to limited review by the statutory auditors.

KRN Heat Exchanger Q1 FY27 Results: Key Highlights

*Profit attributable to owners/group based on the consolidated results in the filing.

The numbers show triple-digit revenue growth accompanied by strong profit growth in the first quarter of FY27.

Revenue More Than Doubles to ₹252 Crore

KRN’s consolidated revenue from operations increased to ₹252.32 crore in Q1 FY27, compared with ₹115.28 crore in Q1 FY26.

This represents approximately 119% year-on-year growth.

The company also reported strong sequential growth.

Revenue increased from ₹179.48 crore in Q4 FY26 to ₹252.32 crore in Q1 FY27, representing approximately 40.6% quarter-on-quarter growth.

The performance reflects the continued scale-up of KRN’s HVAC&R manufacturing operations.

KRN’s Key Products

KRN manufactures heat-exchanger products primarily using copper and aluminium.

Its product portfolio includes:

• Condenser coils

• Evaporator units

• Evaporator coils

• Header and copper parts

• Fluid coils

• Steam coils

• Sheet-metal components

These products cater to the broader heating, ventilation, air-conditioning and refrigeration industry.

Profit Before Tax Crosses ₹42 Crore

KRN’s consolidated profit before tax increased to ₹42.33 crore in Q1 FY27 from ₹20.96 crore in Q1 FY26.

That represents approximately 102% year-on-year growth.

The sequential performance was also strong, with PBT increasing from approximately ₹26.85 crore in Q4 FY26 to ₹42.33 crore in Q1 FY27.

This indicates that earnings growth remained strong alongside the company’s rapid revenue expansion.

Profit After Tax Rises Over 100%

Consolidated profit after tax attributable to the company stood at approximately ₹32.75 crore in Q1 FY27.

This compares with approximately ₹15.69 crore in Q1 FY26.

The increase represents growth of more than 100% year-on-year.

Therefore, KRN delivered strong growth at both the revenue and bottom-line levels during the quarter.

India Remains the Core Market

KRN’s consolidated segment reporting divides its business into India and Overseas segments.

Segment Revenue – Q1 FY27

The India business remained the company’s largest revenue contributor.

At the same time, overseas operations generated ₹52.38 crore, accounting for more than 20% of consolidated revenue.

This gives KRN an additional source of revenue beyond the domestic HVAC&R market.

KRN’s Export Business Spans Multiple Countries

KRN’s export revenue during the quarter came from a diversified group of international markets.

The company’s filing identifies exports to countries including:

• Brazil

• Canada

• France

• Italy

• Nepal

• Netherlands

• Norway

• Sri Lanka

• United Arab Emirates

• United Kingdom

• United States

• Vietnam

• Croatia

• Austria

The overseas segment generated ₹52.38 crore of revenue in Q1 FY27.

The company’s export presence is therefore spread across multiple international markets rather than being concentrated in one geography.

IPO Funds Fully Utilised for New Manufacturing Facility

One of the key developments highlighted in the financial results is the utilisation of KRN’s IPO proceeds.

The company had raised net IPO proceeds of approximately ₹311.12 crore.

The allocation included:

As of June 30, 2026, the entire ₹235.76 crore earmarked for the new manufacturing project had been utilised.

The project involves establishing a new manufacturing facility at Neemrana, Rajasthan.

This expansion could provide additional manufacturing capacity and support KRN’s future growth.

KRN Completes ₹350 Crore QIP

KRN also completed a Qualified Institutions Placement (QIP) during the quarter.

The QIP opened on May 26, 2026, and closed on June 1, 2026.

The company allotted 33,01,886 fully paid-up equity shares to eligible qualified institutional buyers at an issue price of ₹1,060 per share.

The issue size was approximately ₹350 crore, while net proceeds after issue expenses stood at approximately ₹341.79 crore.

QIP Fund Utilisation

According to the filing, the net proceeds were earmarked for:

• Repayment/pre-payment of certain borrowings

• Investment in KRN HVAC Products Private Limited for working-capital requirements

• General corporate purposes

The QIP provides KRN with additional financial resources to support its business and expansion plans.

New Manufacturing Capacity Could Support Future Growth

The investment in the new manufacturing facility is an important long-term development for KRN.

The company has already utilised the IPO funds allocated for the proposed Neemrana manufacturing facility.

Additional manufacturing capacity could help KRN cater to increasing demand from domestic and international HVAC&R customers.

For investors, the key factors to monitor will be:

• When the new facility becomes operational

• Capacity utilisation

• Production ramp-up

• Customer additions

• Export growth

• Impact on margins

• Revenue contribution from the new capacity

Strong Domestic and International Business

KRN’s Q1 FY27 performance demonstrates a combination of domestic scale and international diversification.

The company generated:

₹199.94 crore from India

and

₹52.38 crore from overseas markets.

Its export business covers markets across North America, Europe, the Middle East and other international regions.

Geographical diversification could provide KRN with opportunities to reduce dependence on a single market over the longer term.

KRN Heat Exchanger’s Business Model

KRN operates in the HVAC&R industry and manufactures heat exchangers primarily using copper and aluminium.

Its products include:

• Condenser coils

• Evaporator coils

• Evaporator units

• Fluid coils

• Steam coils

• Related components

These products form part of the wider HVAC&R equipment supply chain.

The long-term growth opportunity for KRN is linked to demand for:

• Air-conditioning systems

• Refrigeration equipment

• Cooling infrastructure

• Industrial HVAC applications

• Commercial cooling

• Residential air-conditioning

KRN Heat Exchanger Q1 FY27: What Investors Should Watch

The strong Q1 performance provides a positive start to FY27.

However, investors should monitor several factors over the coming quarters.

Capacity Expansion

The progress of the Neemrana manufacturing facility will be important for future production growth.

Export Growth

With ₹52.38 crore of overseas revenue in Q1 FY27, export growth will remain an important business driver.

Margins

Strong revenue growth needs to translate into sustainable profitability. Investors should track operating margins and cost trends.

Working Capital

The expansion of the business could increase working-capital requirements, making cash-flow generation important.

QIP Deployment

Investors should monitor how the approximately ₹341.79 crore of net QIP proceeds are deployed.

KRN Heat Exchanger Q1 FY27: Strong Start to FY27

KRN Heat Exchanger has delivered a strong first quarter of FY27.

Key Numbers

Revenue: ₹252.32 crore
YoY Revenue Growth: ~119%

Profit Before Tax: ₹42.33 crore
YoY PBT Growth: ~102%

Profit After Tax: ~₹32.75 crore

India Revenue: ₹199.94 crore

Overseas Revenue: ₹52.38 crore

IPO Investment in New Facility: ₹235.76 crore fully utilised

QIP Size: ~₹350 crore

KRN Heat Exchanger and Refrigeration has started FY27 with strong financial momentum, with consolidated revenue more than doubling to ₹252.32 crore and profit before tax rising to ₹42.33 crore.

The company’s ₹235.76 crore investment in the new Neemrana manufacturing facility has been fully utilised, while the recently completed ₹350 crore QIP provides additional financial resources for debt repayment, working capital and corporate requirements.

With its established HVAC&R product portfolio, growing export business and planned manufacturing capacity expansion, KRN has several potential growth drivers going forward.

However, investors should closely track capacity utilisation, export growth, margins, working-capital requirements, cash flows and the deployment of QIP proceeds in the coming quarters.

This article is based on KRN Heat Exchanger and Refrigeration Limited’s unaudited standalone and consolidated financial results and Board Meeting outcome dated August 12, 2026. The financial statements were subject to limited review by the statutory auditors. This article is for informational purposes only and should not be considered investment advice.