KRN
Micro CapKRN Heat Exchanger and Refrigeration Limited
Industrials
KRN Heat Exchanger and Refrigeration Limited manufactures heat exchangers, cooling coils, and integrated HVAC&R solutions. It serves diverse end-use industries globally, including HVAC, refrigeration, data centers, automotive, and railways, operating two manufacturing facilities in Neemrana, Rajasthan.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 100/100Rev +36% YoY · PAT +53% YoY · margin expansion · +17% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹179 Cr | +35.6% | +17.0% |
| EBITDA | ₹34 Cr | +78.9% | +9.7% |
| Operating margin | 19.0% | +500 bps | -100 bps |
| PAT | ₹23 Cr | +53.3% | +0.0% |
| PAT margin | 12.8% | +149 bps | -218 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
KRN reported strong FY26 consolidated revenue growth of 38.06% YoY to 609.81 Cr, with EBITDA up 59.52% YoY to 112.48 Cr, and Net Profit up 44.62% YoY to 76.47 Cr. Q4 FY26 standalone revenue crossed 200 Cr for the first time, reflecting stronger order momentum and conversion.
The company's significant capacity expansion with Plant II and strategic entry into Bus AC via acquisition position it for future growth. However, the ambitious ramp-up targets and reliance on customer qualification for new capacity utilization warrant close monitoring, especially given the Q4 standalone EBITDA margin dip to 8.91%.
Geography Wise Revenue Distribution (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
New Plant II Capacity Ramp-up
New KRN HVAC Products facility inaugurated May 2025, adding 6x existing capacity, with a target to reach ~50% utilization in FY27.
Bus AC & Railway HVAC Entry
Acquisition of Sphere Refrigeration Systems' Bus AC division (Q2 FY26) moves KRN from component supplier to full Bus AC system assembler, targeting 160 Cr revenue in FY27.
Export Market Expansion
Exports reached ~ 99 Cr in FY26, with a diversified presence across 18 countries. Target is to increase export share towards 30-50% of revenue.
Data Center & District Cooling Opportunities
Heat exchangers are 5–10% of HVAC project capex. Named opportunities like Google Visakhapatnam ( 50,000 Cr total capex) and Tata-Keppel Chennai (12,100 TR cooling) present significant addressable markets.
KRN HVAC Products Facility (Plant II)
Inaugurated on May 31, 2025, this new facility adds 6x existing capacity, with 350 Cr capex ( 241 Cr from IPO). It is registered under a wholly-owned subsidiary.
Supportive Industry Environment
Management states broader industry environment remains supportive, driven by demand across data centres, infrastructure, mobility, and industrial applications.
Government Incentives
PLI (5% of incremental sales for 3 years) and Rajasthan RIPS (~1.5% of turnover for 10 years) approvals are expected in FY27, providing a combined ~6.5% revenue-linked uplift.
Concessional Tax Rate
The new KRN HVAC Products subsidiary is eligible for a concessional 15% tax rate on its income under Section 115BAB.
Raw Material Price Volatility
Volatility in copper, aluminum, and imported raw material prices is a key business risk, though mitigated by quarterly LME pass-through to customers.
Skilled Manpower Dependence
Dependence on skilled manpower and manufacturing precision is identified as a risk, mitigated by integrated manufacturing and testing infrastructure.
Demand Slowdown
A slowdown in HVAC, room AC, or industrial capex demand could impact the business, mitigated by diversified applications.
Product Testing & Compliance
Increasing OEM and export requirements for product testing, validation, and compliance pose a risk, mitigated by Thermotech R&D Lab and certifications.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company provides both annual (FY26 YoY) and quarterly (Q4 FY26 YoY and sequential) results. Quarterly comparisons are crucial to track the ramp-up of the new HVAC plant, initial contribution, and margin recovery post Q2 FY26 dip, which are key to the investment thesis.
Order Inflow
70+ new customers added in FY26, with a run-rate of ~2 new customers per month across both plants. Recent data-centre cooling win had a single PO size of 20 Cr, with 50 Cr+ orders becoming routine.
EBITDA Margin
Consolidated EBITDA margin for FY26 was 18.74%, up from 16.40% in FY25. Q4 FY26 consolidated EBITDA margin was 18.69%, up from 14.37% in Q4 FY25.
Working Capital (Receivable Turnover)
Consolidated Receivable Turnover Ratio for FY26 was 3.43 days, an improvement from 4.62 days in FY25.
Capacity Utilization
Plant I (existing) is 84–86% utilised, near full capacity. Plant II (new) is targeted to reach ~50% utilization in FY27, up from 20-25% in FY26.
Pivotal Phase & Growth
Chairman & MD states FY26 marks a pivotal phase, reflecting a clear transition to a higher scale of operations, supported by consistent execution and new facility contribution.
New Facility Scaling
The new HVAC manufacturing facility is operational and gradually scaling up, which will further support growth and enhance ability to serve larger requirements.
Export as Key Driver
Exports continued to be a key growth driver, reaching ~ 99 Cr with diversified presence, reflecting strong traction in key international markets.
Positioned for Opportunities
Management believes the company is well positioned to capitalise on opportunities ahead, with focus on sustaining growth, improving operating leverage, and value creation.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Plant II Utilization | 20-25% in FY26 | Ramp-up to ~50% utilization in FY27. |
| Bus AC Revenue | Initial contribution in FY26 | Achieving ~ 160 Cr revenue target in FY27 from the Bus AC line. |
| Export Revenue Share | ~16.57% of total revenue in FY26 | Increase towards 30% in FY27 and 50% in 3 years. |
| Incentive Approvals | PLI pending, RIPS applied (Q1 FY26) | Flow-through of PLI and RIPS approvals and their impact on profitability in FY27. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +45.4% / mo · near 52W high
Technical chart
KRNdaily · 1Y+57.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 58. Wait for confirmation.
- SMA20 falling (~11.5% over last month) — short-term momentum negative.
- RSI(14) at 58 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 12% off 52W high · 109% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Balance sheet contributes 10/15 to the score.
- Growth contributes 13/25 to the score.
- Quality contributes 8/20 to the score.
Main drags
- Fair-value margin of safety is negative at -122.6%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 67th percentile of the scored universe and 64th percentile within Industrials. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter holding is 70.8%. Key concern: Only 0 years of positive FCF.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 64th pctile, median 68 · Micro: 52nd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 70.8%.
- ▸Promoter pledge is zero.
- ▸7/7 recent quarters had positive YoY revenue growth.
- ▸6/7 recent quarters had positive YoY PAT growth.
Trust risks
- ▸Only 0 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 106.00
- P/B
- 13.33
- EV/EBITDA
- 63.24
- Market Cap
- 8098.00Cr
Profitability
- ROE
- 14.30%
- ROCE
- 16.10%
- ROA
- 8.15%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 39.80%
- EPS 5Y
- 39.60%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 0.33
- Interest Coverage
- 18.67×
- Altman Z
- 8.03
- Book Value
- 92.40
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -114.00 Cr
- EPS TTM
- 12.30
Shareholding
- Promoter Hold
- 70.79%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 79%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.