KRN Heat Exchanger and Refrigeration Ltd Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jay Johan - Shri Nara asset managers - Analyst : Good afternoon thank you for the opportunity. Am I audible?

Question: Jay Johan - Shri Nara asset managers - Analyst : So my question was, like, with the new thermotech research lab, what is your approach towards building intellectual property? Like, do you have any patents, filed or planned, or how do you see, IT contributing to your competitive mode?

Question: Jay Johan - Shri Nara asset managers - Analyst : Got it, sir. So, basically, like, my question was around like how do you see, like, what kind of thing you can, what kind of IT you can generate using this research lab like can this help you to develop competitive mode going forward, like can you file patent for the same or, something like that because I'm just trying to gauge the industry at the moment.

Question: Jay Johan - Shri Nara asset managers - Analyst : Right, sir, right, sir, understood. And sir, currently if I'm not wrong you update 100% B2B with OEM, right?

Question: Jay Johan - Shri Nara asset managers - Analyst : So sir, like, have you, evaluated the aftermarket, opportunity replacement part opportunity, I think that typically offers higher margin, right. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Jay Johan - Shri Nara asset managers - Analyst : Right, sir, that answers my question, sir. Thank you.

Question: Manish Oswal - Nirmal Bank Securities Private Limited - Analyst : The opportunity and this set of numbers, during the, macro conditions. So question on the first on the new facility which we have commenced, in May 2025. So can you talk about, in terms of how we are ramping up the facility, how we are adding the customers and, especially export market side. Domestic side, how many clients we added for the new facility so far? How many clients visited the facility? Can you talk about qualitatively that will be grateful for understanding the length of part of the new facility.

Question: Manish Oswal - Nirmal Bank Securities Private Limited - Analyst : The second thing, sir, if I look at our quarterly numbers, so we have, our growth and revenue is 20% of gross profit increase very similar rate, but Evita is down, and I understand that ex expenditure with respect to new plan, we are incurring and because of that beta performance is weak. Can you call out specific cost, with respect to new plan in the current quarter number so that we can, understand the comparison from a, YY basis.

Question: Manish Oswal - Nirmal Bank Securities Private Limited - Analyst : And so last question on the export side. So currently we have export share of 16.4% of our consolidated sales, 18.89% grows for the quarter, and it has been steadily improving, for the last 4 years. And now with the new facility, if you just see when you talk about 6 times to 7 times of revenue, what will be the share of the export, and in export business, what is the margin differential at a gross profit level. Compared to the domestic margin.

Question: Hera Parik - Dollar Capital - Analyst : Hello, sir. Thank you for taking my question. So I just wanted to understand, can you help us understand what is the current status of approvals and scheme and, when do you expect the margin or P&L bank to start reflecting. And secondly, sir, I just want to understand, what would you, call out to be the key triggers for the next 3 to 6 months?

Question: Hera Parik - Dollar Capital - Analyst : Yes, sure, I wanted to understand what would be the key, triggers for revenue in the next 3 to 6 months in terms of order and flows util like.

Question: Manik Narayan - SSPL Securities - Analyst : Thanks for taking up my question. I have 3 questions. First one is, as you have mentioned earlier, that the plan will operate at 25% capacity in the 1st year. Okay, so can you guide us in which quarter we can expect it to reach at 25%? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Manik Narayan - SSPL Securities - Analyst : Can expect it will operate at.

Question: Manik Narayan - SSPL Securities - Analyst : Fine, sir. And one more question is that.

Question: Manik Narayan - SSPL Securities - Analyst : How much of the revenue came from the new plans that is April from April to June, as I can see there's not much of a difference in consolidated and standalone feature in terms of revenue and plan has started to operate from, May 31, 2025. How much of the revenue came from the new plan during that period to June?

Question: Manik Narayan - SSPL Securities - Analyst : So as you, said earlier, like, during this meeting itself that, customers are visiting regularly, like, did you secure any order that, so you can be confident that, sales might be coming from the 3rd quarter or 4th quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Yeah, hi, sir. Thanks for having my question. My first question is, will you be able to, throw some light on the customer expansion or the CapEx plan for the next 2 to 3 years to whom we supply, also, if you could, mention the names which is possible, like which are possible for you.

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Okay, sir. And sir, we are also expecting demand from, hydrogen, steel, and, renewable and vertical. So what portion of FY '26 and FY '27 order pipeline we are expecting from this segments.

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Okay, sir. And sir, this new subsidiary that we have formed, is having some conventional tax rate of 15%. So at what, utilization levels we expect our overall consult tax rate to go down to say 20% or, 18%, like what's the, what would be the timeline for this?

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Sir, this new subsidies that we have set up, it is having a tax rate of around 15%. I mean the consent on tax rate, right? So right now on console basis we have 30, 28 to 30% of tax rate. So I'm just trying to understand at what level, I mean at what capacity utilization levels or say in, period terms when can we see our console tax rate going, down towards 20% or below it.

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Understood. And so, is there any criteria that we look before accepting any order? Is it the value or profitability?

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Understood. And so, are there any opportunities for cross-selling and upselling, in case the uses that we provide to our end users?

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Well, suppose we are, supplying an XKU suppose it's 500 worth. So it's supposed to develop, any advanced SKU. So, did we pitch the, customers, okay, they have developed something really efficient. So, would you be interested in buying or something like that? I mean, do we TRY to cross sell and upsell. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : I got it. And so, would you be able to, provide us the breakdown, margin profiles, across and sectors, say, oil and gas or chemicals or others? I mean, just trying to understand which sector offers the highest, margin.

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : So. And last question, any guidance, for the top line and margins for the full year FY '26?

Question: Sanjay Nandi - VT Capital - Analyst : Hello, good evening, sir. Thank you for the opportunity. Yeah, sir, just to buy it, like, 18% has been a total export roughly 4,555 makes it, and we are planning to ramp it up to 50%, right? I you understand right sir? Yes, if we, plan to ramp it up to 50% of our total sales, then what would be our incremental overall margins like, if you can give some ballpark numbers. The next 2 to 3 years on the line. So can you expect something like 80% kind of what you used to do earlier.

Question: Sanjay Nandi - VT Capital - Analyst : Got it. And, sir, like if we presume like everything will be like in production from the next year beginning onwards, so for 27 onwards. So what kind of, total sales can we just, expect, the next 2 to 3 years on the line like from 450 odd grows, currently what kind of thing we can expect in the next 3 years from now if we can give some for us.

Question: Sanjay Nandi - VT Capital - Analyst : And sir, what is the current profile in our books as we talk. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Sanjay Nandi - VT Capital - Analyst : Yeah, what is the current step profile like the need that if you can, help us with the numbers.

Question: Sanjay Nandi - VT Capital - Analyst : Yeah, now, yeah, I just wanted to get the figure for the net. It's on it.

Question: Sanjay Nandi - VT Capital - Analyst : Can you hear me?

Question: Sanjay Nandi - VT Capital - Analyst : Like, yeah, I would like to get a figure for the name. Not that, okay, yeah.

Question: Sanjay Nandi - VT Capital - Analyst : Perfect. And so just to mention that, like today's new some data center cooling detech is coming up 50,000 odd close. So what would be the quantum of our 5 in that entire CapEx? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Sanjay Nandi - VT Capital - Analyst : 1,000 could be he takes in each basis like like I imagine just a ballpark number I wanted. And so what is the industry size as of now as we talk for it's also.

Question: Sanjay Nandi - VT Capital - Analyst : No issues, sir. No issues. That was great, sir. Yes sir. I'll come back in a you, sir. Thank you so much for your time, sir. Wish you all.

Question: Hera Parik - Dollar Capital - Analyst : Okay sir, hi Mr. Yadav. This is, Pratik this site from, same team. Mr. Yadav, we have been reading about, this district cooling centers, which probably is a probable, alternative to HVAC, where, a small part of the entire city is, refrigerator, is cooled or rather chilled or rather, refrigerated with the help of distinct cooling center. I just wanted to get your opinion on, does it also require, the evaporators and the condensers, or is the infra, similar to what is the current, systems are and our product will still go if, district cooling centers are, built because probably there's one big tender in Amravati which has been, won by some, Dubai based conglomerate if I'm not wrong.

Question: Hera Parik - Dollar Capital - Analyst : Yeah, most of my questions have been answered. Thank you.

Question: Manik Narayan - SSPL Securities - Analyst : Some other. It's not so high. But we are.

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Yeah, hi sir. So, sir, I just want to understand about the other expenses. So would you please, be able to, make us understand what the other expenses include and what part is fixed and what part is the variable? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2025 / 11:00AM, KRNH.NS - Q1 2026 KRN Heat Exchanger and Refrigeration Ltd Earnings Call

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : No, sir. Actually I was looking for that other expenses part on the profit and loss statement.

Question: Shivkumar Prajapati - Ambert Investment Advisors - Analyst : Sure sir.