Profitability Saw an Even Sharper Rise, With Net Profit Attributable to Owners Surging 164.8% Yoy to Rs 32.90 Crore From Rs 12.42 Crore

KRN Heat Exchanger and Refrigeration shares hit a 5% upper circuit at Rs 1,398.80 on the BSE on Thursday, following a strong Q1 FY27 earnings performance. The rally was driven by robust demand across both domestic and international markets. The company's consolidated revenue from operations for the June quarter more than doubled, surging 118.9% year-on-year (YoY) to Rs 252.32 crore from Rs 115.28 crore in the corresponding period last fiscal.

On a sequential basis, revenue grew over 40% from Rs 179.48 crore in the preceding March quarter, while total income stood at Rs 255.09 crore compared to Rs 118.86 crore a year ago. Profitability saw an even sharper rise, with net profit attributable to owners surging 164.8% YoY to Rs 32.90 crore from Rs 12.42 crore. Profit before tax rose to Rs 42.33 crore from Rs 18.29 crore in Q1 FY26. Basic and diluted earnings per share expanded to Rs 5.20 compared to Rs 2.00 in the year-ago period.

Domestic revenue within India grew over 107% YoY to Rs 199.94 crore from Rs 96.39 crore, while overseas revenues nearly tripled to Rs 52.38 crore compared to Rs 18.89 crore in the same period last year. Among international markets, the United States was the company's largest export destination, generating Rs 17.07 crore during the quarter, followed by France with Rs 10.38 crore, Vietnam with Rs 6.39 crore, and the UAE with Rs 5.94 crore. On the expense side, cost of materials consumed increased to Rs 164.41 crore from Rs 90.67 crore a year ago, reflecting higher production volumes, while total expenses for the quarter stood at Rs 212.76 crore compared to Rs 100.57 crore in Q1 FY26. In its financial notes, KRN Heat Exchanger stated that out of net IPO proceeds of Rs 311.12 crore, funds allocated towards equity investment in its wholly owned subsidiary KRN HVAC Products Private Limited for a new facility at Neemrana, Rajasthan have been fully utilized as of June 30, 2026. The company also completed a Qualified Institutional Placement (QIP) on June 1, issuing 33.01 lakh shares at Rs 1,060 per share to raise Rs 341.79 crore net.

Out of these funds, Rs 30 crore went toward debt repayment and Rs 76.54 crore for general corporate purposes. The company invested Rs 235.26 crore in its subsidiary for working capital, of which Rs 92.08 crore was deployed during the quarter.