Shree Refrigerations H1 revenue rises 85% as margin expands

Shree Refrigerations Limited reported H1 FY27 revenue from operations of Rs 93.2 crore, up 84.9% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 123.6% to Rs 12.7 crore. EBITDA margin expanded by 235 basis points to 13.6%, despite a 105.0% increase in cost of goods sold to Rs 58.5 crore.

What drove Shree Refrigerations’ H1 FY27 revenue growth?

Shree Refrigerations increased revenue from operations by Rs 42.8 crore, from Rs 50.4 crore in H1 FY26 to Rs 93.2 crore in H1 FY27. EBITDA rose from Rs 5.7 crore to Rs 12.7 crore over the same period, while net profit increased 360.9% from Rs 1.5 crore to Rs 6.8 crore.

Shree Refrigerations reported total expenditure growth below revenue growth during H1 FY27. Total expenditure rose 80.0% to Rs 80.5 crore, compared with revenue growth of 84.9%, reducing expenditure to 86.4% of revenue from 88.8% in H1 FY26. That 2.4-percentage-point reduction in the expenditure ratio coincided with EBITDA margin increasing from 11.2% to 13.6%.

How did higher costs affect Shree Refrigerations’ H1 margin?

Shree Refrigerations absorbed a 105.0% rise in cost of goods sold (COGS) while increasing its EBITDA margin. COGS rose from Rs 28.5 crore in H1 FY26 to Rs 58.5 crore in H1 FY27, lifting its share of revenue to 62.8% from 56.7%. The presentation associates the increase with elevated commodity inflation, meaning input costs rose faster than revenue.

Shree Refrigerations’ employee benefit and other expenses grew more slowly than revenue. Employee benefit expenses increased 46.7% to Rs 14.9 crore, reducing their revenue share to 16.0% from 20.2%, while other expenses rose 17.6% to Rs 7.1 crore and fell to 7.6% of revenue from 11.9%. These movements helped EBITDA increase by Rs 7.0 crore despite the rise in COGS.

Below EBITDA, depreciation declined 33.5% to Rs 1.7 crore and interest fell 3.2% to Rs 2.3 crore. Earnings before interest and tax (EBIT) increased from Rs 3.4 crore to Rs 11.9 crore, while profit before tax rose from Rs 1.0 crore to Rs 9.6 crore. Net profit margin increased by 438 basis points from 2.9% to 7.3%, and reported earnings per share rose from Rs 0.48 to Rs 1.91.

How does H1 FY27 compare with Shree Refrigerations’ annual record?

Shree Refrigerations’ H1 FY27 revenue of Rs 93.2 crore was about 61% of its FY26 revenue of Rs 153.5 crore, while its 13.6% EBITDA margin was below the FY26 full-year margin of 21.4%. Management stated that the business is inherently seasonal, with revenue typically weighted towards H2, and expects stronger second-half performance to support operating leverage and margin expansion.

From FY23 to FY26, Shree Refrigerations increased revenue from Rs 50.6 crore to Rs 153.5 crore, which the presentation describes as a compound annual growth rate (CAGR) of about 45%. EBITDA rose from Rs 11.9 crore to Rs 32.9 crore, or a stated CAGR of about 40%, while net profit increased from Rs 3.4 crore to Rs 21.4 crore, representing a stated CAGR of about 85%.

Shree Refrigerations’ annual figures show that EBITDA grew each year while EBITDA margin declined after FY24. EBITDA margin was 30.1% in FY24, 27.3% in FY25 and 21.4% in FY26, even as EBITDA increased by Rs 5.9 crore in FY26. Net profit margin, however, rose from 13.2% in FY25 to 13.9% in FY26 as interest expense declined from Rs 4.5 crore to Rs 3.8 crore.

What order book and balance-sheet changes matter for Shree Refrigerations?

Shree Refrigerations had an unexecuted order book of Rs 198.9 crore as of 30 September 2026, after executing Rs 93.2 crore of orders in H1 FY27. It started the period with an order book of Rs 270.8 crore and received new orders worth Rs 21.3 crore. The closing order book was 1.3 times FY26 revenue, according to the presentation.

Shree Refrigerations’ heating, ventilation and air conditioning segment represented Rs 127.7 crore of the closing order book. Marine air-conditioning plants and chillers accounted for Rs 38.6 crore, refrigeration plants for Rs 17.9 crore, spares and services for Rs 11.2 crore, and other categories for Rs 3.6 crore. The disclosed backlog therefore covered equipment and service categories rather than a single product line.

Shree Refrigerations’ working-capital and fixed-asset balances increased during the first half. Trade receivables rose to Rs 128.5 crore at H1 FY27 from Rs 105.4 crore at FY26, while inventories increased to Rs 79.8 crore from Rs 54.8 crore. Short-term borrowings rose from Rs 33.6 crore to Rs 42.0 crore, cash and cash equivalents fell from Rs 57.5 crore to Rs 6.8 crore, and property, plant and equipment increased from Rs 21.5 crore to Rs 49.4 crore.

Conclusion

Shree Refrigerations delivered revenue growth that exceeded total-expenditure growth in H1 FY27, allowing EBITDA margin to reach 13.6% even though COGS rose to 62.8% of revenue from 56.7%. Net profit of Rs 6.8 crore and a 7.3% net profit margin were materially above H1 FY26, although the half-year EBITDA margin remained below FY26’s 21.4% full-year level.

Next, readers should watch H2 execution against the Rs 198.9 crore order book, as management says revenue is normally weighted towards the second half. Management has stated a long-term full-year EBITDA margin expectation of 20% to 22%, plans a 50,000-square-foot greenfield project expandable to 100,000 square feet, and targets about 40% revenue CAGR from the FY26 revenue base; the presentation also discloses a technology-cooperation agreement with Smardt of Canada for oil-free data-centre chillers.