KRN Heat Exchanger & Refrigeration Ltd shares have surged over 400 per cent from the IPO price, backed by strong Q4 earnings, margin expansion, rising exports, new customer additions and an optimistic FY27 growth outlook. According to reports from ET Now, the company, which manufactures and exports aluminium and copper fin-and-tube heat exchangers, condenser coils and evaporator units, has delivered extraordinary returns to investors since its stock market debut. Listed in October 2024, the company has scripted a remarkable success story, bucking the broader weakness seen across the primary market.
The company's stellar stock market performance has been supported by robust financial growth. As reported by ET Now, in its latest quarterly results, KRN Heat Exchanger reported a 36.5 per cent year-on-year rise in revenue to ₹179 crore, compared with ₹131.5 crore in the corresponding quarter last year. EBITDA surged 77.2 per cent YoY to ₹33.5 crore from ₹19 crore, while profit after tax (PAT) increased 57.2 per cent to ₹23.4 crore versus ₹14.8 crore a year ago. The company's EBITDA margins improved from 14.4 per cent in Q4FY25 to 18.7 per cent in Q4FY26, demonstrating strong operational efficiency.
The company's operational momentum remains robust with inventory cover currently standing at around 2.5 months and nearly 20 days of goods in transit. According to ET Now, during the fourth quarter, the company added 10-15 new bus customers and is targeting the addition of over 70 new customers in FY26. The company is expanding its presence across newer segments, including data centres, exports and bus AC OEMs. Further strengthening its growth outlook, KRN Heat Exchanger said its new HVAC manufacturing facility has now become operational.
Management has set ambitious targets for FY27, as reported by ET Now. The company is targeting nearly ₹160 crore revenue from the bus AC segment in FY27, while exports are expected to contribute around 30-50 per cent of the company's overall revenue mix. The company expects approvals under the PLI and RIPS schemes during FY27, which could further support its long-term growth trajectory. Capacity utilisation is expected to reach around 50 per cent in FY27, compared to nearly 20-25 per cent in FY26.
