KRN Heat Exchanger: Capacity Expansion Drive Growth

experienced a strong start to the fiscal year, with revenue more than doubling (up 119% YoY) and PAT surging 165% to Rs 32.9 crore. This growth was driven by meaningful contributions from its newly operational KRN HVAC facility alongside core heat-exchanger operations. Accelerated Export Market Penetration: Overseas shipments jumped 177% YoY across 14 countries, led by North America and Europe. Management targets doubling export revenues to Rs 200 crore in FY27, aiming for exports to ultimately represent 50% of its fin-and-tube business segment. Expansion into High-Growth Segments: The company is actively diversifying beyond traditional HVAC cooling into bar-and-plate products, bus ACs, data center liquid cooling, and railway HVAC systems. It has already secured L1 status in a Chittaranjan Locomotive Works tender and expanded its footprint in automotive cooling. Government Incentive and Margin Boosts: KRN expects to qualify for Production Linked Incentive (PLI) benefits once fin-and-tube revenue hits Rs 400 crore by late FY27. Combined with operational efficiencies, consolidated EBITDA margins are projected to stay above 20%. Optimistic Revenue Targets & Valuation: Supported by a robust order pipeline, management aims for Rs 2,000 crore in revenue at ~80% capacity utilization by FY28. While trading at a premium valuation (~53x FY28E earnings), the stock's valuation is backed by strong execution and market expansion.