KRN Heat Exchanger Stock Plummets as Net Profit More Than Doubles Amid Global Demand Surge
Shares of KRN Heat Exchanger and Refrigeration surged on Thursday, hitting a 5% upper circuit at Rs 1,398.80 on the BSE. This strong market rally followed the announcement of robust Q1 FY27 earnings, driven by substantial demand across both domestic and international markets. The company reported massive growth in revenue and profitability, positioning it strongly for future expansion.Stellar Financial Performance Drives Stock Rally
KRN demonstrated phenomenal top-line growth for the June quarter. Consolidated revenue from operations surged 118.9% year-on-year (YoY) to Rs 252.32 crore, up from Rs 115.28 crore in the corresponding period last fiscal. Profitability saw an even sharper increase, with net profit attributable to owners rising 164.8% YoY to RS 32.90 crore, significantly up from Rs 12.42 crore.Total income for the quarter reached Rs 255.09 crore compared to Rs 118.86 crore in Q1 FY26. The company’s basic and diluted earnings per share (EPS) expanded to Rs 5.20, a strong improvement from Rs 2.00 recorded in the year-ago period. While revenue growth was robust, cost of materials consumed rose to Rs 164.41 crore from Rs 90.67 crore a year ago, reflecting increased production volumes.
Domestic and Export Markets Fuel Revenue Surge
The top-line performance is testament to strong demand across all geographical markets. Domestic revenue within India grew over 107% year-on-year to Rs 199.94 crore, up from Rs 96.39 crore in the previous period. Overseas revenues saw an even quicker growth trajectory, nearly tripling to Rs 52.38 crore compared to Rs 18.89 crore last year.The United States remains the company’s largest export destination, contributing Rs 17.07 crore during the quarter. France is the second-largest international market, generating Rs 10.38 crore. Other key markets included Vietnam and the United Arab Emirates, which contributed Rs 6.39 crore and Rs 5.94 crore, respectively. Key exports were also successfully routed to Italy (Rs 5.65 crore) and Canada (Rs 2.95 crore).
Capital Deployment and Future Investment Plans
KRN Heat Exchanger provided clarity on the use of funds in its financial disclosures. Out of net IPO proceeds amounting to Rs 311.12 crore, a portion was allocated for equity investment into its wholly owned subsidiary, KRN HVAC Products Private Limited. This facility is located in Neemrana, Rajasthan, and the allocation has been fully utilized as of June 30, 2026.Furthermore, the company completed a Qualified Institutional Placement (QIP) on June 1, 2026, issuing 33.01 lakh shares at Rs 1,060 per share to raise a total of Rs 341.79 crore net. Of these funds, Rs 30 crore was utilized for debt repayment and Rs 76.54 crore allocated for general corporate purposes. KRN invested Rs 235.26 crore into its subsidiary for working capital, with Rs 92.08 crore deployed in the current quarter.
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