KRN Heat Exchanger Q1 FY27 profit up 165%, stock hits 5%

Stock hits upper circuit after results

Shares of KRN Heat Exchanger and Refrigeration hit a 5% upper circuit at Rs 1,398.80 on the BSE on Thursday after the company reported a sharp year-on-year jump in Q1 FY27 earnings. The move followed the release of unaudited financial results for the quarter ended June 30, 2026. The company’s operating performance was led by a steep rise in revenue and an even stronger expansion in profitability. Market attention also stayed on updates related to fund utilisation from recent capital raising. The company reported it had completed a Qualified Institutional Placement (QIP) during the quarter. It also said it had fully utilised IPO proceeds for its Neemrana facility.

Revenue from operations more than doubles

KRN Heat Exchanger reported consolidated revenue from operations of Rs 252.32 crore for Q1 FY27, up 118.9% year-on-year from Rs 115.28 crore in Q1 FY26. Total income for the quarter stood at Rs 255.09 crore, compared with Rs 118.86 crore a year earlier. The company also provided a sequential reference point, stating revenue rose from Rs 179.48 crore in the preceding March quarter. Domestic revenue within India increased to Rs 199.94 crore from Rs 96.39 crore, a growth of over 107% year-on-year. These figures indicate that the growth was not limited to a small base and was broad enough to lift consolidated totals sharply. The reported numbers place the June quarter as a clear step-up from the year-ago period.

Profitability accelerates faster than revenue

Net profit attributable to owners rose 164.8% year-on-year to Rs 32.90 crore from Rs 12.42 crore in Q1 FY26. Profit before tax increased to Rs 42.33 crore from Rs 18.29 crore over the same period. Earnings per share also moved higher, with basic and diluted EPS at Rs 5.20 compared to Rs 2.00 in the year-ago quarter. In the company’s results snapshot, profit after tax for the quarter was also presented as 3,289.56 lakhs, which converts to Rs 32.90 crore. The profit growth outpaced revenue growth, pointing to improved operating leverage and margins during the quarter. The company’s total expenses were disclosed as 21,276.38 lakhs, equivalent to Rs 212.76 crore, alongside the increase in total income.

EBITDA rises 179% and margin expands

Operating performance was supported by a strong jump in EBITDA. The company reported EBITDA of Rs 49.1 crore for Q1 FY27, up 179% from Rs 17.6 crore in Q1 FY26. EBITDA margin expanded to 19.44% from 15.26%, representing a 418 basis point increase. The margin improvement was a key driver behind the faster rise in net profit versus revenue. While the update did not provide a detailed cost breakup behind the margin expansion, the reported margin change suggests better cost absorption at a higher scale. The company’s profitability trend during the quarter was therefore visible across EBITDA, PBT, and net profit.

Capital raising and utilisation updates

KRN Heat Exchanger said it completed a QIP during the quarter, raising net proceeds of Rs 341.8 crore. It also reported that it had fully utilised IPO proceeds of Rs 311.1 crore for its Neemrana facility. Separately, a fund utilisation disclosure stated: IPO fund utilisation of Rs 235.76 crore fully utilised as of June 30, 2026, and QIP fund utilisation of Rs 341.79 crore fully utilised as of June 30, 2026. These statements were presented alongside the quarterly performance update and were part of the broader information set investors tracked after the results. The company’s commentary positioned the fund utilisation as completed, including for expansion-related use at Neemrana.

Subsidiary wins Rs 50.87 crore domestic order

The company said its subsidiary, KRN HVAC Products Private Limited, won a domestic order worth Rs 50.87 crore for heat exchanger coils during the quarter. The disclosure adds a project pipeline datapoint alongside the quarterly earnings. The order was described as domestic, consistent with the company’s reported increase in India revenue. No timeline or delivery schedule was provided in the update shared here. Still, the order value was explicitly disclosed and featured among the operational highlights for the quarter.

Key financial snapshot for Q1 FY27

The company’s reported metrics highlight a sharp year-on-year improvement across revenue, operating profitability, and earnings per share.

Market datapoints and trading references

The immediate market reaction was visible in the stock hitting a 5% upper circuit at Rs 1,398.80 on the BSE. Another price datapoint included in the same information set showed the current share price as Rs 1,331.9. A separate timestamped reference stated the stock was trading at 1,332.20 as on Wed Aug 12 2026 10:25:38. These figures were presented as snapshots rather than a continuous price series. The company was also noted as having mutual fund holding at 3.13% as on 30 Jun 2026. Peers cited alongside the stock included Bharat Heavy Electricals, Suzlon Energy, and Thermax, although no performance linkage was provided beyond their listing.

Why this quarter stands out

The June quarter combined high revenue growth with faster profit growth, supported by a visible EBITDA and margin expansion. Revenue from operations rose to Rs 252.32 crore, while net profit reached Rs 32.90 crore, both at triple-digit year-on-year growth rates. Domestic revenue growth to Rs 199.94 crore was another standout item, indicating that India operations contributed meaningfully to the overall jump. The company also paired its earnings update with funding and utilisation disclosures, including the completed QIP and stated utilisation of IPO proceeds tied to the Neemrana facility. For investors, the combination of operating momentum and capital deployment updates formed the core of the results-driven reaction.

Conclusion

KRN Heat Exchanger and Refrigeration’s Q1 FY27 results showed revenue more than doubling and net profit rising 165% year-on-year, with EBITDA margin improving to 19.44%. The stock responded by hitting a 5% upper circuit at Rs 1,398.80 on the BSE. Alongside earnings, the company disclosed the completion of a Rs 341.8 crore QIP and provided fund utilisation updates, while also reporting a Rs 50.87 crore domestic order for its subsidiary. The next set of updates for investors will depend on subsequent earnings disclosures and any further project and capacity-related commentary from the company.