KRN Heat Exchanger shares hit 5% upper circuit as Q1 net profit more than doubles

Shares of KRN Heat Exchanger and Refrigeration hit a 5% upper circuit at Rs 1,398.80 on the BSE on Thursday, following a strong Q1 FY27 earnings performance. The rally was driven by robust demand across both domestic and international markets.The company’s consolidated revenue from operations for the June quarter more than doubled, surging 118.9% year-on-year (YoY) to Rs 252.32 crore from Rs 115.28 crore in the corresponding period last fiscal. On a sequential basis, revenue grew over 40% YoY from Rs 179.48 crore in the preceding March quarter, while total income stood at Rs 255.09 crore compared to Rs 118.86 crore a year ago.Profitability saw an even sharper rise, with net profit attributable to owners surging 164.8% YoY to RS 32.90 crore from RS 12.42 crore. Profit before tax rose to Rs 42.33 crore from Rs 18.29 crore in Q1 FY26. Basic and diluted earnings per share expanded to Rs 5.20 compared to Rs 2.00 in the year-ago period.Domestic and export market performanceThe top-line growth was supported by strong demand across geographical markets. Domestic revenue within India grew over 107% year-on-year to Rs 199.94 crore from Rs 96.39 crore. Overseas revenues grew even faster, nearly tripling to Rs 52.38 crore compared to Rs 18.89 crore in the same period last year.Among international markets, the United States was the company’s largest export destination, generating Rs 17.07 crore during the quarter. France was the second-largest overseas market with Rs 10.38 crore, while Vietnam and the United Arab Emirates contributed Rs 6.39 crore and Rs 5.94 crore, respectively. Key exports were also made to Italy (Rs 5.65 crore) and Canada (Rs 2.95 crore).On the expense side, cost of materials consumed increased to Rs 164.41 crore from Rs 90.67 crore a year ago, reflecting higher production volumes. Total expenses for the quarter stood at Rs 212.76 crore compared to Rs 100.57 crore in Q1 FY26.Capital deployment and IPO utilizationIn its financial notes, KRN Heat Exchanger stated that out of the net IPO proceeds of Rs 311.12 crore, funds allocated towards equity investment in its wholly owned subsidiary, KRN HVAC Products Private Limited, for a new facility at Neemrana, Rajasthan, have been fully utilized as of June 30, 2026.The company also completed a Qualified Institutional Placement (QIP) on June 1, 2026, issuing 33.01 lakh shares at Rs 1,060 per share to raise Rs 341.79 crore net. Out of these funds, Rs 30 crore went toward debt repayment and Rs 76.54 crore for general corporate purposes. The company invested Rs 235.26 crore in its subsidiary for working capital, of which Rs 92.08 crore was deployed during the quarter, with the remaining Rs 143.18 crore kept in fixed deposits and bonds.