KRN Heat Exchanger and Refrigeration delivered exceptional financial performance in Q1 FY27, with consolidated net profit surging 165% to ₹32.90 crore compared to ₹12.42 crore in the corresponding quarter of the previous year. According to the company's unaudited financial results approved by the board on August 12, 2026, this represents a remarkable turnaround in the company's profitability metrics during the first quarter of fiscal 2027. The strong earnings performance drove shares to hit a 5% upper circuit at ₹1,398.80 on the BSE on Thursday, reflecting robust investor confidence in the company's growth trajectory.
The company's consolidated revenue from operations more than doubled, surging 118.9% year-on-year to ₹252.32 crore from ₹115.28 crore in the same period last year. On a sequential basis, revenue grew over 40% YoY from ₹179.48 crore in the preceding March quarter, while total income stood at ₹255.09 crore compared to ₹118.86 crore a year ago. As reported by the company, domestic operations remained the primary revenue driver, contributing ₹199.9 crore, while the overseas segment contributed ₹52.4 crore. Among international markets, the United States was the company's largest export destination, generating ₹17.07 crore during the quarter, followed by France at ₹10.38 crore, Vietnam at ₹6.39 crore, and the United Arab Emirates at ₹5.94 crore. Exports to Italy and Canada also formed key components of international sales.
EBITDA surged 179% to ₹49.1 crore from ₹17.6 crore in the corresponding period last year, with the EBITDA margin expanding significantly by 418 basis points to 19.44% from 15.26%. According to the company's financial data, this margin expansion indicates better operational efficiency and cost management during the quarter, with revenue more than doubling while EBITDA nearly tripled. The cost of materials consumed increased to ₹164.41 crore from ₹90.67 crore a year ago, reflecting higher production volumes, while total expenses for the quarter stood at ₹212.76 crore compared to ₹100.57 crore in Q1 FY26. The company's earnings per share rose to ₹5.20 from ₹2.00 a year ago, reflecting the improved profitability across all key metrics.
Profit before tax (PBT) increased by 131% to ₹42.33 crore in Q1 FY27 compared to ₹18.29 crore in the previous year's corresponding quarter. Additionally, PBDT (Profit Before Depreciation and Tax) rose 138% to ₹48.80 crore from ₹20.47 crore in Q1 FY26. The company noted that total expenses rose to ₹212.8 crore from ₹100.6 crore YoY, yet profit before tax grew at a faster pace, indicating effective cost management and operational leverage during the quarter.
The company completed a Qualified Institutional Placement (QIP) on June 1, 2026, issuing 33.01 lakh shares at ₹1,060 per share to raise ₹341.79 crore net. Out of these funds, ₹30 crore went toward debt repayment and ₹76.54 crore for general corporate purposes. The company invested ₹235.26 crore in its subsidiary for working capital, of which ₹92.08 crore was deployed during the quarter, with the remaining ₹143.18 crore kept in fixed deposits and bonds. Notably, the company has fully utilised its earlier IPO proceeds of ₹311.1 crore for setting up a new manufacturing facility in Neemrana, Rajasthan.
