KRN Heat Exchanger And Refrigeration Ltd

Meeting Details

• Date and time: 21-08-2026, 12:00 Noon onwards
• Type and mode: Group meeting, Virtual
• Organizer/event: Kirin Advisors
• Event: Webinar for KRN Heat Exchanger and Refrigeration Limited

Participants

• Key company participant: Chairman and Managing Director (speaker)

Purpose

• Investor/analyst interaction via webinar

Business Overview

• India-based manufacturer of heat exchangers and HVAC&R solutions for residential, commercial, and industrial use.
• Diversified HVAC&R portfolio across heat exchangers, coils, and integrated systems.
• Exports to North America, Europe, and UAE; strong domestic growth via capacity expansion and localisation.
• Listed on NSE and BSE in Oct 2024; investor presentation for Q1 FY27.

Operational Highlights

• Q1 FY27 consolidated revenue ₹252.32 Cr; YoY growth 118.9%.
• Standalone Q1 FY27 revenue ₹181.97 Cr; EBITDA ₹24.67 Cr.
• Exports grew 177% YoY; products shipped to 14 countries.
• Capex-driven capacity expansion and localisation to support growth.
• KRN HVAC Products Pvt Ltd formed; Bus AC Division acquired from Sphere Refrigeration.
• Workforce: 1,500+ employees.

Financial Performance

• FY26 revenue ₹600.06 Cr; EBITDA ₹112.48 Cr; EBITDA margin 18.74%.
• Net profit FY26 ₹76.47 Cr; net margin 12.74%.
• Cash flow from operations FY26: -₹113.80 Cr; financing positive ₹147.69 Cr.
• Total assets FY26 ₹931.82 Cr; current borrowings ₹187.10 Cr; cash ₹46.44 Cr.
• Market cap ₹9,153.71 Cr; share price ₹1,398.40; shares outstanding 65.46 million.

Capital Structure & Liquidity

• Current borrowings ₹187.10 Cr; non-current borrowings ₹0.21 Cr.
• Cash and bank balance ₹46.44 Cr; inventories ₹272.91 Cr; trade receivables ₹174.71 Cr.

Strategic Priorities & Outlook

• Scale manufacturing, increase capacity, localisation and backward integration.
• Expand export footprint to high-potential markets; diversify revenue mix.
• Formation of KRN HVAC Products Pvt Ltd; Bus AC division acquisition aligns with growth.
• Listed on NSE/BSE since Oct 2024; building global HVAC&R footprint.
• Focus on capacity expansion and backward integration investments.

Governance & Leadership

• Chairman & MD: Santosh Kumar Yadav; promoter and founder.
• Board includes Non-Executive Director and Independent Directors; strong governance framework.
• CFO: Pawan Nawal; Company Secretary: Jitendra Kumar Sharma.
• Subsidiary: KRN HVAC Products Pvt Ltd; expanding manufacturing footprint.

Financial Highlights (Consolidated)

• Consolidated revenue from operations: ₹252.32 crore in Q1 FY27, up 118.87% YoY.
• Consolidated EBITDA: ₹49.06 crore; margin 19.44%.
• Consolidated net profit: ₹32.90 crore; margin 13.04%.
• Diluted EPS: ₹5.20.

Export and domestic mix

• Overseas revenue ₹52.38 crore, up 177.31% YoY.
• Exports across 14 countries in the quarter.
• Export share of total revenue: 20.76%.
• Domestic revenue ₹199.94 crore, 79.24% of total segment revenue.

Capital raising and use of proceeds

• QIP: 33,01,886 shares allotted at ₹1,060; ₹350 crore raised.
• IPO proceeds fully utilised as at 30 June 2026.
• ₹311.12 crore IPO proceeds utilised; ₹235.76 crore invested in Neemrana facility.
• ₹75.36 crore allocated to general corporate purposes.
• State incentive of ₹182.95 crore sanctioned for Neemrana facility.

Governance

• CFO appointed: Pawan Nawal, effective 15 May 2026.

Post-quarter developments

• Domestic order for heat exchanger coils ₹50.87 crore received on 23 July 2026.

Outlook and strategy

• Management aims to build scale and expand capacity and export footprint.
• Investments in capacity, localisation and backward integration to support growth.

Issue Overview

• Type and securities: QIP, equity shares.
• Total issue size and net proceeds reported; no revision or undersubscription.
• Main objectives: debt repayment, subsidiary working capital, general corporate purposes.

Utilisation of Proceeds

• Utilisation is as disclosed; no deviations from the offer document.
• Deviations: none; means of finance unchanged.
• Debt repayment: Nil at start; 3,000 utilised; end quarter: 3,000.
• Subsidiary working capital: Nil at start; 9,207.98 utilised; unutilised: 14,317.77 parked.
• GCP: Nil at start; 7,653.73 utilised.
• Unutilised funds status: 14,317.77 unutilised; parked in fixed deposits and bonds.
• GCP breakdown: 5,148.13 for ordinary course expenses; 2,505.61 for repayment of borrowings.

Governance and Compliance

• Approvals: all statutory/government approvals obtained.
• Material viability events: none reported in MA.
• Other information: none disclosed.

General Corporate Purpose (GCP)

• GCP total utilized: 7,653.73.
• Breakdown: 5,148.13 for ordinary course expenses; 2,505.61 for repayment of borrowings.

Issue Overview

• IPO of equity shares; total size and net proceeds disclosed with no revision or undersubscription noted.
• Main objective: investment in a wholly owned subsidiary for a new manufacturing facility.
• Main objective: General Corporate Purposes for strategic initiatives and growth.

Utilisation of Proceeds

• Utilisation as per offer document; no material deviations observed.
• No deviations or reallocations; no undersubscription or cost revisions.
• Investment in subsidiary fully utilized; funds used for project development and asset purchase.
• General Corporate Purposes fully utilized; no unutilised funds.
• Issue-related expenses utilized towards brokerage and selling commissions.
• Unutilised funds nil; public issue and monitoring accounts balances nil.
• Final MAR confirms full utilization of IPO proceeds.

Governance and Compliance

• All government approvals obtained; factory license, GST, and pollution department approvals in place.
• No material adverse events or regulatory actions reported.
• No additional information affecting investor decision.

GCP

• GCP utilization fully utilized; funds allocated to manufacturing project and corporate needs.
• Board approval status for GCP allocation not specified in MAR.

Key QIP fund utilisation details

• Purpose: Confirm no deviation/variation in use of funds raised via QIP.
• Mode of fund raising: Qualified Institutional Placement (QIP).
• Date and amount raised: 01 June 2026, INR 349.99 crore.
• Monitoring agency: CRISIL Ratings Limited (applicable).
• Status: No deviation or variation in use of funds raised.
• Report filed for quarter ended: 30 June 2026.

Fund utilisation overview

• Mode of fund raising: Public issue.
• Date of raising funds: disclosed in filing.
• Amount raised: disclosed in filing.
• Monitoring agency: applicable; ratings agency oversight.
• Deviation: None observed; no variation in use.
• Utilisation status: Fully utilised.
• Objects funded: subsidiary facility investment, general corporate purposes, and issue-related expenses.

Financial results approved

• Unaudited standalone and consolidated Q1 FY2026 results approved.
• Limited Review Reports by statutory auditors enclosed.

Auditors appointed

• Cost Auditor appointed for FY2026-27: M/s. R S Chauhan & Associates.
• Internal Auditor appointed for FY2026-27: Sharma Shankar & Co.

QIP proceeds and utilization

• QIP completed; allotment of 33,01,886 shares at ₹1,060 per share.
• Total proceeds: ₹34,999.99 Lakhs.
• Net proceeds after expenses: ₹34,179.48 Lakhs.
• Utilisation: ₹3,000 for debt repayment.
• Invested ₹23,525.75 Lakhs in KRN HVAC Products Private Limited.
• General corporate purposes ₹7,653.73.
• As of 30 June 2026, invested funds fully utilized; no unutilised funds.

Investor complaints

• Status of investor complaints: Nil.

Dematerialisation/rematerialisation status

• Securities for dematerialisation up to 30 June 2026 were confirmed to the depositories.
• Securities dematerialised have been listed on the stock exchange where earlier securities are listed.
• Physical dematerialisation certificates were mutilated and cancelled after verification; depository's name substituted within 15 days.
• No dematerialisation/rematerialisation requests were received during quarter ended 30 June 2026.