KRN Heat Exchanger Shares Hit Upper Circuit After Q1 FY27 Profit Surges 165%
Q1 FY27 Revenue and Profitability Metrics
The company reported a consolidated revenue from operations of Rs 252.32 crore for the quarter ended June 30, 2026. This figure marks a 118.9 percent surge compared to Rs 115.28 crore in the corresponding period of the previous fiscal year, according to financial disclosures analyzed by Inkl. On a sequential basis, top-line performance climbed over 40 percent from Rs 179.48 crore in the March quarter. Total income for the June period reached Rs 255.09 crore.
Bottom-line expansion outpaced top-line growth. Net profit attributable to owners climbed 164.8 percent year-on-year to Rs 32.90 crore, up from Rs 12.42 crore in Q1 FY26. Profit before tax advanced to Rs 42.33 crore from Rs 18.29 crore, pushing basic and diluted earnings per share to Rs 5.20 from Rs 2.00. Operating leverage also widened significantly, with EBITDA expanding 179 percent to Rs 49.1 crore and EBITDA margins improving by 418 basis points to 19.44 percent, as detailed in reports from Multibagg.
Global Export Dynamics and Regional Demand
Domestic revenue within India grew more than 107 percent year-on-year to reach Rs 199.94 crore. Overseas markets expanded at an even faster velocity, nearly tripling to Rs 52.38 crore compared to Rs 18.89 crore in Q1 FY26. The United States anchored international sales, generating Rs 17.07 crore during the quarter. France followed as the second-largest overseas destination with Rs 10.38 crore. Vietnam and the United Arab Emirates contributed Rs 6.39 crore and Rs 5.94 crore respectively, while Italy and Canada accounted for Rs 5.65 crore and Rs 2.95 crore.
Capital Deployment and Fund Utilization
Total expenses for the quarter rose to Rs 212.76 crore from Rs 100.57 crore, driven primarily by raw material consumption costs increasing to Rs 164.41 crore. To support this scaling, KRN Heat Exchanger confirmed that net IPO proceeds of Rs 311.12 crore allocated toward equity investment in its wholly owned subsidiary, KRN HVAC Products Private Limited, for a new facility at Neemrana, Rajasthan, were fully utilized as of June 30, 2026.
Additionally, the company completed a Qualified Institutional Placement on June 1, 2026, issuing 33.01 lakh shares at Rs 1,060 per share to secure Rs 341.79 crore in net proceeds. Out of this capital raise, Rs 30 crore went toward debt repayment, Rs 76.54 crore supported general corporate purposes, and Rs 235.26 crore was channeled into subsidiary working capital. Of that working capital allocation, Rs 92.08 crore was deployed during the quarter, with the remaining balance held in fixed deposits and bonds. Concurrently, subsidiary KRN HVAC Products secured a domestic order worth Rs 50.87 crore for heat exchanger coils.