Shree Refrigerations Ltd (544458)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Shree Refrigerations' revenue was ₹103 Cr (+114.6% year on year, +106.0% on the previous half-year), and net profit ₹20.0 Cr (+300.0% year on year); the operating margin was 26.2%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹103 | +114.6% | +106.0% |
| Operating profit | ₹27.0 | +125.0% | +350.0% |
| Net profit | ₹20.0 | +300.0% | — |
| EPS (₹) | 5.59 | +234.7% | — |
| Operating margin | 26.2% | — | — |
📢 Recent Corporate Announcements
Shree Refrigerations Limited has incorporated a wholly owned subsidiary named 'Aquilon Limited' on October 15, 2026. The company subscribed to 100% of the initial paid-up share capital for ₹2.50 Cr in cash, comprising 2,50,000 equity shares at ₹100 each. Aquilon Limited will focus on manufacturing, designing, and servicing chillers, heat pumps, and HVAC systems. The ₹2.50 Cr investment represents approximately 1% of Shree Refrigerations' TTM revenue of ₹252 Cr and 1.1% of its net worth of ₹220 Cr.
- Incorporated wholly owned subsidiary 'Aquilon Limited' on 15th October 2026
- Total initial capital subscription of ₹2,50,00,000 in cash
- Acquired 2,50,000 equity shares of face value ₹100 each for 100% ownership
- Subsidiary to focus on chillers, heat pumps, HVAC systems, and related components
Shree Refrigerations has bagged a domestic contract worth Rs 7.86 crore (excluding GST) from Controller Procurement Material Organisation, Mumbai (Indian Navy). The order entails the supply of two Magnetic Bearing Compressor-based AC plants, scheduled for completion by October 5, 2027. In an accompanying release, the company noted it has secured cumulative orders exceeding Rs 14 crore from the Indian Navy over the past 1.5 months. Relative to TTM revenue of Rs 252 crore, the Rs 7.86 crore win represents approximately 3.1% of revenue.
- Secured order valued at Rs 7.86 crore (excluding GST) / Rs 8.25 crore (including GST) from the Indian Navy
- Delivery timeline set for completion by October 05, 2027
- Scope covers supply of two Magnetic Bearing Compressor based AC Plants
- Cumulative fresh Indian Navy orders exceed Rs 14 crore over the past 1.5 months
Shree Refrigerations has approved the incorporation of a wholly owned subsidiary named 'Aquilon Deep Chill Limited' (or MCA-approved alternative) based in Karad, Satara, Maharashtra. The company will subscribe to 100% of the initial paid-up capital in cash for up to ₹5.00 crore. The subsidiary will focus on manufacturing, designing, and servicing chillers, heat pumps, refrigeration, and advanced HVAC systems. The ₹5 crore commitment represents ~2.3% of the company's net worth (₹220 crore) and ~2.0% of TTM revenue (₹252 crore).
- Board approved incorporation of 100% wholly owned subsidiary 'Aquilon Deep Chill Limited' (subject to MCA approval)
- Proposed cash investment of up to ₹5,00,00,000 in equity share capital
- Entity to manufacture and service chillers, heat pumps, industrial refrigeration, and HVAC automation systems in Karad, Satara, Maharashtra
- Proposed investment represents ~2.3% of FY26 net worth of ₹220 crore
Shree Refrigerations Limited has secured a domestic purchase order valued at ₹3.93 crore (excluding GST) from the Indian Navy, Controller Procurement, Material Organisation, Mumbai. The contract is for the supply of Magnetic Bearing Compressor-based AC Plants. The project has a delivery timeline of 365 days, scheduled for completion by August 28, 2027. While modest in size at ~1.6% of TTM revenue (₹252 crore), it reinforces the company's established qualification and technological positioning with defense clients.
- Order value of ₹3.93 crore (excluding GST) awarded by Indian Navy, Mumbai
- Scope covers supply of Magnetic Bearing Compressor based AC Plant
- Execution timeline set at 365 days with delivery date of August 28, 2027
- Non-related party transaction with a domestic government defense entity
Shree Refrigerations released an updated investor presentation detailing its new Unit-2 greenfield manufacturing facility in Karad, Maharashtra (~50,000 sq. ft., expandable to ~1,00,000 sq. ft.), supported by a 40%-50% capex subsidy under Maharashtra's PSI scheme. The company reported unexecuted order book of ₹270.77 Cr as of March 31, 2026 (~1.8x FY26 revenue), with FY26 revenue surging 55.5% YoY to ₹153.5 Cr and PAT rising 64.7% YoY to ₹21.4 Cr. Working capital cycle improved significantly from ~570 days in FY25 to ~370 days in FY26.
- Added 50,000 sq. ft. Unit-2 greenfield facility (expandable to 1,00,000 sq. ft.) with 40%-50% capex subsidy under Maharashtra PSI scheme
- Unexecuted order book stood at ₹270.77 Cr as of March 31, 2026, representing 1.8x FY26 revenue
- FY26 standalone revenue grew 55.5% YoY to ₹153.55 Cr with EBITDA of ₹32.8 Cr (+21.8% YoY)
- Working capital cycle shortened from ~570 days in FY25 to ~370 days in FY26, with positive operating cash flow
Shree Refrigerations has scheduled a virtual group call with NAFA Asset Managers and Centra Insights for August 14, 2026. The company is currently managing a robust order book of Rs 327.62 Cr, which is approximately 1.3x its TTM revenue of Rs 252 Cr. This interaction follows a strong FY26 performance where revenue grew to Rs 154 Cr from Rs 99 Cr in FY25. The discussion will be based on publicly available information, likely focusing on the company's expansion into Data Centre cooling and its specialized Naval HVAC solutions.
- Virtual group meeting scheduled for August 14, 2026, at 3:00 PM.
- Participation includes NAFA Asset Managers and Centra Insights.
- Company maintains a significant order book of Rs 327.62 Cr as per latest strategy updates.
- TTM Revenue stands at Rs 252 Cr with a healthy Operating Profit Margin of 23.8%.
- Company is targeting a 40-50% CAGR through naval contracts and Data Centre cooling JVs.
Shree Refrigerations (SRL) reported a strong FY26 with revenue reaching Rs 154 Cr, a 50% YoY increase. The company enters FY27 with a robust order book of Rs 271 Cr, which is approximately 107% of its TTM revenue, providing high growth visibility. A major 50,000 sq. ft. manufacturing facility became operational in June 2026, significantly increasing capacity beyond the previous 37,000 sq. ft. footprint. Strategic moves include a partnership for Data Centre cooling and becoming a TASP for Danfoss Turbocor, positioning the company for diversification beyond its core Indian Navy contracts.
- Opening order book for FY27 stands at Rs 271 Cr, representing 1.07x of TTM revenue
- Revenue for FY26 reached Rs 154 Cr, marking a 50% YoY growth from FY25
- New 50,000 sq. ft. manufacturing facility in Hanbarwadi became operational in June 2026
- Won new orders worth over Rs 209 Cr during FY26, primarily in the Naval HVAC&R segment
- Secured a strategic partnership with Smardt Chiller Group for the Indian Data Centre market
Shree Refrigerations Limited (SRL) has issued its FY26 Annual Report, highlighting a 50% YoY revenue growth to Rs 154 Cr. The company enters FY27 with a strong order book of Rs 271 Cr, which is approximately 1.07x its TTM revenue of Rs 252 Cr. A major milestone was the operationalization of a new 50,000 sq. ft. manufacturing facility in June 2026 to support naval and data centre cooling demands. Additionally, SRL secured a strategic partnership with Danfoss Turbocor as an authorized service partner in India, diversifying its revenue into high-margin maintenance services.
- Order book stands at Rs 271 Cr as of the start of FY 2026-27, providing strong revenue visibility.
- New 50,000 sq. ft. manufacturing facility became operational in June 2026 to accelerate naval deliveries.
- Won new orders worth over Rs 209 Cr during the financial year, including prestigious naval projects.
- Revenue grew 50% YoY in FY26, crossing the Rs 150 Cr milestone.
- IPO was oversubscribed 187.55 times, reflecting high investor interest during its August 2025 listing.
Shree Refrigerations Ltd has scheduled its 20th Annual General Meeting (AGM) for August 31, 2026, at its registered office in Satara, Maharashtra. The company has fixed August 24, 2026, as the cut-off date to determine shareholder eligibility for voting on AGM resolutions. While the filing is administrative, it precedes a period where the company is targeting a 40-50% CAGR driven by a substantial order book of Rs 327.62 Cr. Investors should monitor the upcoming annual report for updates on the Smardt JV and naval HVAC contract execution.
- 20th Annual General Meeting scheduled for Monday, August 31, 2026, at 11:30 A.M.
- Cut-off date for determining voting eligibility is fixed as August 24, 2026.
- Company currently operates with a significant order book of Rs 327.62 Cr as per latest context.
- TTM revenue stands at Rs 252 Cr with a healthy operating profit margin of 23.8%.
Shree Refrigerations Ltd has approved the 'ESOP 2026' scheme, which proposes to grant up to 10,00,000 equity shares, representing 2.79% of the company's total equity capital. The board also regularized the appointment of Ms. Rucha Ravalnath Shende as a Whole Time Director for a three-year term effective from February 23, 2026. Ms. Shende is a family member of the current Managing Director and other Whole-Time Directors, indicating a continuation of family-led management. Both the ESOP scheme and the director's appointment are subject to shareholder approval at the upcoming Annual General Meeting.
- ESOP 2026 pool consists of 10,00,000 equity shares of face value ₹2 each.
- The proposed ESOP scheme represents a 2.79% dilution of the existing equity share capital.
- Ms. Rucha Ravalnath Shende regularized as Whole Time Director for a 3-year term until February 22, 2029.
- The ESOP exercise period is set at 30 days from the date of vesting.
- Minimum vesting period for the stock options is one year as per SEBI regulations.
Shree Refrigerations Ltd has scheduled a board meeting on July 18, 2026, to consider and approve the 'Shree Refrigerations Limited ESOS 2026' scheme. The proposed scheme will be governed by SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Implementation of the scheme is subject to shareholder approval via a special resolution at the upcoming Annual General Meeting. Specific details regarding the number of options or the percentage of equity dilution have not yet been disclosed.
- Board meeting scheduled for July 18, 2026, to discuss employee stock options.
- Proposed scheme titled 'Shree Refrigerations Limited ESOS 2026'.
- Requires a Special Resolution from shareholders at the next Annual General Meeting.
- Compliance with SEBI Regulations, 2021, for share-based employee benefits.
Financial Performance
Revenue Growth by Segment
Defense and Marine HVAC&R solutions generated the bulk of revenue, with total operations growing 22.9% YoY to INR 98.73 Cr in FY25. H1 FY26 revenue was INR 50.39 Cr, a slight 1.1% decrease from H1 FY25 due to customer delivery schedules.
Geographic Revenue Split
Operations are concentrated near major Indian ports including Mumbai, Vizag, Kochi, and Chennai to serve naval and marine clients effectively.
Profitability Margins
FY25 Gross Margin (COGS based) was 49.3%, while Net Profit Margin was 13.2%, down from 13.7% in FY24. H1 FY26 Net Profit Margin compressed significantly to approximately 2.6% due to front-loaded execution costs.
EBITDA Margin
EBITDA margin for FY25 was 27.3%, down from 30.1% in FY24. H1 FY26 EBITDA margin dropped to 11.2% (a 1,907 bps YoY decline) due to a 71.1% increase in employee expenses and 94.3% increase in other expenses to support new HVAC project execution.
Capital Expenditure
The company is renting an additional 20,000 sq. ft. factory and planning a greenfield project of 50,000 sq. ft. (expandable to 100,000 sq. ft.) to meet growing defense demand.
Credit Rating & Borrowing
CARE Ratings assigned/reaffirmed CARE BB+; Stable for long-term and CARE A4+ for short-term facilities. Total borrowings as of March 31, 2025, stood at INR 46.92 Cr.
Operational Drivers
Raw Materials
Specialized components for HVAC&R systems and raw materials like steel and copper; COGS represented 50.7% of total revenue in FY25 (INR 50.10 Cr).
Import Sources
Not specifically disclosed, though the company notes exposure to international trade developments and input cost volatility.
Capacity Expansion
Current capacity is being augmented by a 20,000 sq. ft. rented facility; a new greenfield project of 50,000 sq. ft. is planned to streamline naval inspections and accelerate deliveries.
Raw Material Costs
COGS rose 25.1% YoY in FY25 to INR 50.10 Cr, tracking revenue growth. Procurement strategies focus on managing volatility in raw material prices which remains a key constraint.
Manufacturing Efficiency
The company operates a backwardly integrated manufacturing facility and a design office with 21 specialized personnel to ensure quality standards required by the Navy.
Logistics & Distribution
Distribution is optimized through service and installation teams located near major ports to ensure long-term system reliability for naval vessels.
Strategic Growth
Expected Growth Rate
50%
Growth Strategy
Growth will be driven by a 40-50% CAGR target through the execution of a large order book (INR 327.62 Cr), expansion into Data Centre cooling via a JV with Smardt (Canada), and scaling turnkey HVAC solutions for the Indian Navy.
Products & Services
Marine and industrial chillers, turnkey HVAC solutions, oil-free magnetic bearing chillers, control panels, and aftermarket maintenance services.
Brand Portfolio
Shree Refrigerations, Trezor (Subsidiary).
New Products/Services
Oil-free magnetic bearing chillers for Data Centres and specialized HVAC systems for naval warships like P-17 Alpha.
Market Expansion
Targeting high-growth sectors such as Data Centres and expanding service presence in Chennai and other port cities.
Market Share & Ranking
Strategic dominance in the Indian Naval HVAC market; only Indian company qualified by three professional directorates of the Indian Navy.
Strategic Alliances
Technical cooperation agreement signed with Smardt (Canada) for oil-free Data Centre chillers; strategic investment secured from Maharashtra Defence and Aerospace Venture Fund.
External Factors
Industry Trends
The Indian Naval HVAC market is projected to be worth INR 3,200 Cr to INR 4,800 Cr over the next 5-7 years. The industry is shifting toward high-precision, customized fabrication and oil-free cooling technologies.
Competitive Landscape
Faces competition from multinational companies and local system integrators, though backward integration provides a cost and quality advantage.
Competitive Moat
Durable moat through 40+ years of heritage and unique certifications from the Directorate of Marine Engineering and Directorate of Architecture, which are difficult for competitors to replicate.
Macro Economic Sensitivity
Highly sensitive to Indian Government defense spending and naval infrastructure investment trends.
Consumer Behavior
Increasing demand for mission-critical, high-performance refrigeration in sectors like pharmaceuticals and defense.
Geopolitical Risks
Impacted by regulatory changes and international trade developments affecting the defense and industrial sectors.
Regulatory & Governance
Industry Regulations
Operations must comply with stringent Indian Navy standards (Directorate of Marine Engineering) and the Companies Act 2013.
Taxation Policy Impact
Effective tax rate for FY25 was approximately 30.4% (INR 5.69 Cr tax on INR 18.69 Cr PBT).
Risk Analysis
Key Uncertainties
Tender-driven nature of business leads to lumpy revenue; working capital intensity (88% utilization) poses liquidity risks if project cycles lengthen.
Geographic Concentration Risk
Revenue is highly concentrated in India, specifically serving port-based naval shipyards.
Third Party Dependencies
Dependent on specialized technology partners like Smardt for new high-growth segments like Data Centres.
Technology Obsolescence Risk
Rapid technological evolution in HVAC&R requires continuous R&D; the company mitigates this through its 21-person design team.
Credit & Counterparty Risk
Exposure to government-linked entities and shipyards; receivables quality is generally high but subject to administrative payment cycles.
