FX Multitech: Everest Chillers made chillers a 16% line

FX Multitech Limited’s 51% acquisition of Everest Chillers Private Limited, effective January 10, 2025, added a manufacturing line to its distribution business. Industrial chiller sales were Rs 20.13 crore, or 15.96% of consolidated product sales, in FY 2025-26. The FY 2023-24 standalone figures, however, are not directly comparable with later consolidated results.

How did Everest Chillers make industrial chillers a 16% revenue line?

FX Multitech reported industrial-chiller sales of Rs 20.13 crore in FY 2025-26, representing 15.96% of Rs 126.09 crore in total consolidated product sales. Industrial chillers were the third-largest reported product category, behind compressors at Rs 45.83 crore and refrigeration and air-conditioning controls at Rs 23.94 crore.

The chiller line was already material in FY 2024-25, when consolidated industrial-chiller sales were Rs 16.79 crore, or 16.47% of Rs 101.94 crore in product sales. Sales therefore increased by Rs 3.34 crore year on year, while the category’s share declined by 0.51 percentage points because total product sales grew faster. The prospectus does not separately disclose Everest Chillers’ standalone revenue, so the disclosed product category shows the group’s chiller scale rather than Everest Chillers’ individual sales.

What changed in FX Multitech’s operating model after the acquisition?

FX Multitech moved beyond distribution and export of heating, ventilation and air-conditioning, or HVAC, and industrial-refrigeration components by acquiring control of Everest Chillers. Everest Chillers manufactures customised industrial chillers, glycerol chillers, chilled-water air conditioners and effluent chillers, while FX Multitech’s existing portfolio includes compressors, controls, heat exchangers, cold-room evaporators, refrigerants, drives and specialised tools.

The combination enables FX Multitech to pair sourced components with manufactured equipment for industrial cooling systems. Everest Chillers’ stated Built-in Tank Evaporator, or BTE, technology is described as operating at 0.5 to 0.6 kilowatt per ton, compared with an industry average of 0.8 to 1.0 kilowatt per ton. FX Multitech identifies concrete batching, plastics cycle-time reduction and food-grade hygienic cooling as applications for the combined platform.

The acquisition also changed the group structure because Everest Chillers was FX Multitech’s one subsidiary as of the red herring prospectus date. FX Multitech held 51% of its equity from January 10, 2025, and FY 2024-25 and FY 2025-26 financial information is presented on a consolidated basis. Continued expansion of the manufacturing line depends on chiller orders, production capability, component availability and sales of integrated systems rather than individual parts alone.

How has the acquisition changed FX Multitech’s revenue mix?

FX Multitech’s reported mix now includes a dedicated industrial-chiller category that was absent from the FY 2023-24 standalone product table. In FY 2025-26, compressors remained the largest category at 36.35% of product sales, while industrial chillers accounted for almost one-sixth of sales and exceeded variable-frequency drives and automation at 6.00%, cold-room evaporators at 3.32% and heat exchangers at 1.68%.

The consolidated group’s revenue from operations rose to Rs 126.14 crore in FY 2025-26 from Rs 102.01 crore in FY 2024-25. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased to Rs 19.37 crore from Rs 14.17 crore, and the EBITDA margin increased to 15.35% from 13.89%. These results describe the consolidated business, including the subsidiary, rather than isolating the contribution of manufactured chillers.

Domestic sales remained the principal market, contributing Rs 125.04 crore, or 99.13% of revenue, in FY 2025-26, while exports were Rs 1.04 crore, or 0.83%. Gujarat accounted for Rs 68.56 crore, or 54.83%, of domestic sales, followed by Tamil Nadu at Rs 20 crore, or 16.00%. This concentration means the expanded equipment offering remains chiefly dependent on domestic demand and its largest state market.

Why are FY 2023-24 figures not directly comparable with later results?

FY 2023-24 cannot be directly compared with FY 2024-25 and FY 2025-26 because it uses restated standalone financial statements, whereas the subsequent two years use restated consolidated financial statements. The prospectus explicitly asks readers to consider this presentation difference when assessing financial performance, financial position and trends.

Revenue from operations was Rs 68.52 crore in FY 2023-24 standalone accounts, compared with Rs 102.01 crore in FY 2024-25 consolidated accounts and Rs 126.14 crore in FY 2025-26 consolidated accounts. Although the figures show a reported increase across the three periods, the addition of Everest Chillers to the consolidation perimeter means the movement does not establish a like-for-like organic growth rate.

The reporting distinction is particularly relevant to industrial chillers. The acquisition became effective during FY 2024-25 on January 10, 2025, so that year includes a consolidated period following the transaction, while FY 2025-26 covers a full financial year on the consolidated basis. No industrial-chiller revenue is presented in the FY 2023-24 standalone product table, but that absence should not be read as a directly comparable zero for the later consolidated group.

Conclusion

FX Multitech’s acquisition of a 51% stake in Everest Chillers established industrial chillers as a Rs 20.13 crore product category, accounting for 15.96% of FY 2025-26 consolidated product sales. The category broadens the business from a distributor of refrigeration and HVAC components into a group that also includes equipment manufacturing, while compressors still supplied the largest 36.35% share of product sales.

The next reported evidence to watch is whether industrial-chiller sales maintain or change their 15.96% share as FX Multitech pursues integrated cooling systems, Internet of Things-enabled service contracts and energy-efficient designs. Any assessment of that development should continue to separate consolidated years after the January 10, 2025 acquisition from the FY 2023-24 standalone base.