KRN Heat Exchanger and Refrigeration posted sharp Q2 FY2027 results, with revenue climbing to INR 319.14 crore, up 109.86% year over year. EBITDA reached INR 48.75 crore, up 61.10%, and net profit doubled to INR 36.11 crore, up 100.38%.
Growth came from new customers, a broader product mix, ramp-up at the Neemrana plant and stronger overseas sales. Export revenue nearly tripled in the first half, driven by demand in the U.S., Europe and other markets. Data center cooling revenue jumped to INR 116 crore in Q2 from INR 18 crore a year earlier.
Management lifted its FY2027 export revenue target to INR 250 crore and said full-year revenue could exceed INR 1,250 crore. The company kept full-year EBITDA margin guidance at 17% to 18%, expecting Q3 margins to remain flat before improving 1% to 2% in Q4.
Freight costs rose 1.8% to 2% because of export growth and geopolitical conditions. Raw material inflation in copper, aluminum and stainless steel also compressed margins. Some customer contracts with fixed pricing, including one with Daikin, limited the company's ability to pass on higher costs immediately.
The Neemrana factory ran at about 50% utilization in FY2027, with management targeting 80% in FY2028. The company added more than 30 new customers in the latest quarter.
Whole-Time Director Komal said exports were "one of the most encouraging parts of the half," noting that the U.S. became the company's largest export market, followed by Canada, France, the U.K. and Italy. On technology, Komal said the company is working on liquid cooling products and keeping pace with shifts toward higher-density computing.
The company is expanding into bus air conditioning and railway HVAC systems. Management said the bus AC market is about INR 1,000 crore and growing 25% to 30% annually, while railway HVAC could contribute INR 20 crore by FY2028.
The stock traded at $0.255, down 1.92% from the previous close of $0.26, and sits about 51% below its 52-week high of $0.52.