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KRN Heat Exchanger and Refrigeration Ltd
NSE: KRN BSE: 544263 INE0Q3J01015 Industrials Industrial Products 🔎 Screen
Microcap 250
₹10,432 Cr
Market Cap
107.6
P/E
3.22
PEG
16.1%
ROCE
14.3%
ROE
0.33
D/E
20.3%
OPM
-8.4%
% from 52W High
89
α RS
🔍 KRN is showing a high-conviction setup because it matches 10 of 37 tracked screener presets, RS Rating is 89, an ECS of 76.2 last quarter, and it has maintained a 37-day Stage 2 momentum persistence. The main caution: ECS looks strong but cash conversion is weak (CFO/Profit -1.5). Net: Mixed signal stack, not a recommendation. ? Conviction RS Rating ECS Momentum Streaks
Sources
Conviction 10/37 · RS Rating 89 · ECS 76.2 · Stage 2 streak: 37d · CFO/Profit -1.5
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

KRN Heat Exchanger and Refrigeration (KHERL), manufactures fin and tube-type heat exchangers for the Heat Ventilation Air Conditioning, and Refrigeration Industry.

✓ Strengths 1
  • Company is expected to give good quarter
! Concerns

No concerns data yet.

Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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Strong beat, but with caveats: consolidated revenue +118.87% YoY and PAT +164.84% YoY, driven by exports and the Bus AC acquisition, while standalone EBITDA margin fell 374 bps. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹252.32 Cr (Consolidated)
+118.87% YoY; standalone ₹181.97 Cr, +59.07% YoY
EBITDA Margin
19.44% (Consolidated)
+418 bps YoY; standalone 13.56%, -374 bps YoY
PAT
₹32.90 Cr (Consolidated)
+164.84% YoY; PAT margin 13.04%, +226 bps YoY
Key Metric
Export share 20.76% of revenue
Overseas revenue +177% YoY; exports to 14 countries; USA 32.59% of exports
What Went Right
  • Consolidated revenue jumped to ₹252.32 Cr from ₹115.28 Cr, up 118.87% YoY; standalone revenue grew 59.07% to ₹181.97 Cr.
  • Consolidated EBITDA grew 178.85% YoY to ₹49.06 Cr, with EBITDA margin up 418 bps to 19.44%.
  • Consolidated PAT grew 164.84% YoY to ₹32.90 Cr; EPS rose from ₹2.00 to ₹5.20.
  • Export revenue climbed 177% YoY, with USA 32.59%, France 19.81%, UAE 11.34% and Italy 10.78% of exports, and reach across 14 countries.
  • The Bus AC acquisition added meaningful scale: consolidated revenue exceeded standalone revenue by ₹70.35 Cr in Q1 FY27.
What to Watch
  • Standalone profitability deteriorated: standalone EBITDA margin fell 374 bps YoY to 13.56% and PAT margin fell 345 bps to 10.26% despite 59.07% revenue growth.
  • Raw material costs consumed ~80.9% of standalone revenue versus ~74.2% in Q1 FY26, a ~670 bps hit that offset operating leverage.
  • Finance costs nearly doubled YoY: standalone ₹1.33 Cr vs ₹0.63 Cr; consolidated ₹3.04 Cr vs ₹0.70 Cr, reflecting higher borrowings.
  • FY26 consolidated cash flow from operations was negative ₹113.80 Cr, while current borrowings rose to ₹187.10 Cr from ₹32.04 Cr; inventories stood at ₹272.91 Cr and receivables at ₹174.71 Cr.
  • Consolidated growth is heavily acquisition-influenced; there is no separate disclosure of Bus AC subsidiary profitability or organic vs acquired split, so margin quality is difficult to verify.
Investor Lens
The consolidated growth thesis remains intact, but the standalone profit engine weakened even as scale expanded. Consolidated revenue grew 118.87% to ₹252.32 Cr and EBITDA margin expanded 418 bps, yet standalone EBITDA margin fell 374 bps and raw material absorption rose to ~80.9% of revenue, so core economics did not improve. The Bus AC acquisition and 177% export growth are the real step-changers, but they bring integration, working capital and leverage risk: FY26 operating cash flow was -₹113.80 Cr and current borrowings jumped from ₹32.04 Cr to ₹187.10 Cr. At ₹1,398.40, the ₹9,153.71 Cr market cap is ~119.7x FY26 PAT and ~69.6x annualized Q1 FY27 PAT, leaving no room for execution slips. Next quarter, watch standalone margin recovery, subsidiary-level profitability, cash conversion, and whether exports can sustain 177% momentum.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue jumps 119% to ₹252 Cr; PAT up 175% to ₹33 Cr in strong quarter
Revenue
Revenue grew 119.1% YoY to ₹252.0 Cr in Jun 2026 quarter, from ₹115 Cr in Jun 2025. Sequentially, revenue rose 40.8% over Mar 2026, indicating accelerating demand momentum.
Profitability
Net profit jumped 175% YoY to ₹33.0 Cr, with EPS rising to ₹5.03 from ₹2.00. PAT also grew 43.5% QoQ, aided by a 22% tax rate and PBT of ₹42.0 Cr.
Margins
Operating profit margin expanded from 15% YoY to 19%, while staying flat QoQ at 19%. Operating leverage appears to have driven the YoY margin improvement.
Cash Flow
No cash flow data was provided in the release, so CFO quality relative to PAT cannot be assessed.
Balance Sheet
Debt-to-equity is low at 0.33, indicating manageable leverage. ROCE at 16.1% and ROE at 14.3% reflect reasonable capital efficiency.
Key Risks
At ~119x PE, the stock price has built in very high growth expectations. Margins are flat QoQ, limiting near-term operating leverage upside. Any slowdown in order flow or demand could sharply pressure valuation.
Outlook
The strong YoY and QoQ growth trend suggests continued demand tailwinds, but sustainability at this pace is critical. Future quarters should be watched for margin stability and cash conversion to support the high valuation.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
India
125
EBIT 27
152
EBIT 29
Overseas
29
EBIT 0
28
EBIT 0
Total 153 179

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Information Sources:
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