KRN Heat Exchanger Q4 Profit Surges 57% On Strong Revenue Growth

Mumbai: KRN Heat Exchanger and Refrigeration Ltd reported a 57.1 percent year-on-year rise in consolidated net profit to Rupees 23.36 crore in Q4 FY26, driven by strong growth in revenue from operations and continued demand across domestic and overseas markets. The company had posted a consolidated net profit of Rupees 14.87 crore in the corresponding quarter last year. Revenue from operations rose 36.5 percent to Rupees 179.48 crore compared with Rupees 131.50 crore in Q4 FY25.

The HVAC&R equipment manufacturer also recorded sequential growth during the quarter. Revenue increased 17.1 percent from Rupees 153.23 crore in Q3 FY26, while net profit rose 3.1 percent from Rupees 22.66 crore reported in the preceding quarter. Total income for Q4 FY26 stood at Rupees 181.40 crore against Rupees 155.09 crore in Q3 FY26 and Rupees 135.83 crore in the year-ago quarter.

Expenses Rise Amid Expansion And Higher Operations

Total expenses during the quarter climbed to Rupees 154.55 crore from Rupees 114.71 crore in Q4 FY25 and Rupees 129.62 crore in Q3 FY26, primarily due to higher raw material consumption and employee-related costs. Cost of materials consumed increased to Rupees 57 crore in Q4 FY26 compared with Rupees 51.56 crore a year earlier, while purchase of stock-in-trade rose sharply to Rupees 80.48 crore from Rupees 27.09 crore in Q3 FY26.

Employee benefit expenses stood at Rupees 13.50 crore against Rupees 11.14 crore in Q3 FY26, while finance costs rose to Rupees 2.64 crore from Rupees 1.70 crore sequentially. Depreciation and amortisation expenses also increased to Rupees 5.97 crore during the quarter. Profit before tax came in at Rupees 26.85 crore compared with Rupees 21.12 crore in Q4 FY25 and Rupees 25.87 crore in Q3 FY26. Earnings per share for the quarter improved to Rupees 3.75 from Rupees 2.39 in the corresponding period last year.

FY26 Revenue Crosses Rs 600 Crore

For the full financial year FY26, KRN Heat Exchanger reported consolidated revenue from operations of Rupees 600.06 crore against Rupees 429.85 crore in FY25, marking a 39.6 percent increase. Net profit for FY26 rose 44.6 percent to Rupees 76.47 crore from Rupees 52.88 crore in the previous fiscal, while EPS improved to Rupees 12.30 from Rupees 9.75.

The company said IPO proceeds of Rupees 311.12 crore were fully utilised during FY26, including investments toward a new manufacturing facility at Neemrana, Rajasthan through its wholly owned subsidiary. KRN Heat Exchanger manufactures fin and tube type heat exchangers used in the HVAC&R industry, with exports contributing significantly to revenue.

Disclaimer: This report is based on audited financial results disclosed by the company and is not investment advice.