Stock Skyrockets 15% After Reporting 400% YoY Growth in Net Profit

Synopsis: Shree Refrigerations shares rose 15% after results, with revenue up 115% YoY to ₹103 Crores in H2FY26 and net profit up 400% YoY to ₹20 Crores. The earnings per share (EPS) for the half-yearly period stood at ₹ 5.60.

The shares of the Micro-cap stock specialising in the design, manufacturing, and servicing of mission-critical refrigeration and HVAC (Heating, Ventilation, Air Conditioning) systems have been in the spotlight in today’s trade as they have rallied 15 percent in the day’s trade following their results.

With a market capitalization of Rs. 925.68 crores on the day’s trade, the shares of Shree Refrigerations Ltd jumped upto 15 percent, making a high of Rs. 275.00 per share compared to its previous closing price of Rs. 238.30 per share.

What Happened

Its Revenue from operations (Sales) rose by 115 percent YoY from Rs. 48 Crores in H2FY25 (Mar 2025) to Rs. 103 Crores in H2FY26 (Mar 2026), and it grew by 106 percent HoH from Rs. 50 Crores in H1FY26 (Sep 2025) to Rs. 103 Crores in H2FY26 (Mar 2026).

Its Net Profit surged by 400 percent YoY from Rs. 4 Crores in H2FY25 (Mar 2025) to Rs. 20 Crores in H2FY26 (Mar 2026), and it jumped by 900 percent HoH from Rs. 2 Crores in H1FY26 (Sep 2025) to Rs. 20 Crores in H2FY26 (Mar 2026).

The earnings per share (EPS) for the half-yearly period stood at Rs. 5.60, compared to Rs. 1.60 in the previous full half-year (H2FY25) and Rs. 0.44 in the preceding half-year (H1FY26).

Commenting on the results, Mr Ravalnath Shende, Chairman & Managing Director of Shree Refrigerations Limited, stated that FY26 represents an important inflection point in the company’s growth journey. He highlighted that the strengthening of HVAC execution capabilities and investments in scalable project management systems have started yielding strong results, reflected in the sharp acceleration in revenue and profitability in H2FY26.

He further noted that the Company achieved over 100% revenue growth on both YoY and HoH basis in H2FY26, along with EBITDA margins improving to around 27%, demonstrating strong operating leverage and scalability of the business model. He also emphasised significant improvement in operational efficiency, with the working capital cycle reducing from approximately 570 days in FY25 to about 370 days in FY26, and added that a nearly 2.0x order book of FY26 revenue provides strong visibility for sustained growth and long-term value creation.

Execution-led Growth in H2FY26

Execution-led performance strengthened significantly in H2FY26, as the strategic investments made in H1FY26 started reflecting in operational outcomes. The company’s expanded execution platform played a key role in accelerating project delivery, enabling higher throughput and faster completion cycles.

This improved execution efficiency translated into strong financial performance, with revenue growth exceeding 100% both YoY and HoH. Operating leverage also improved meaningfully, driving EBITDA margins up to 26.3% in H2FY26, while the FY26 EBITDA margins comfortably settled within the guided range of 20%–22%.

Closing Order Book Position

As of 31 March 2026, the Company’s unexecuted order book stood at Rs.  2707.7 Mn, which is approximately 1.8x of FY26 revenue, providing strong visibility for sustained growth in the coming periods. This healthy order book underpins the company’s strong execution pipeline and revenue outlook.

The order book is well diversified across segments, with HVAC contributing 59%, followed by AC Plant (23%), Refrigeration Plant (7%), Turnkey projects (5%), Spares & Services (4%), and Chillers & Others (2%), ensuring balanced exposure across core business verticals.

Outlook

The Company remains focused on strengthening its presence in defence-oriented cooling and HVAC&R systems, while expanding into high-growth segments and emerging markets such as data centres. Supported by a strengthened execution platform and a healthy order book, the Company is well-positioned for scalable growth. With improved execution capabilities, operating leverage, and strong revenue visibility, it remains confident of sustaining its growth momentum. 

Company Overview & Others

Shree Refrigerations Limited is a leading Indian manufacturer of high-performance Refrigeration, Cooling, and HVAC systems with deep domain expertise and end-to-end in-house capabilities for mission-critical and defence-oriented applications. The company’s offerings encompass design, engineering, manufacturing, installation, and commissioning for complex projects requiring reliability and precision in demanding environments. 

The company demonstrates a healthy return profile with ROCE at 13.9% and ROE at 13.0%, supported by a conservative capital structure reflected in a low debt-to-equity ratio of 0.17, indicating strong financial stability and limited leverage risk.

From a valuation perspective, the stock trades at a P/E of 43.1x, which is significantly lower than the industry P/E of 71.5x, suggesting relative valuation comfort despite strong fundamentals. The company has also delivered robust performance with a profit growth CAGR of 136% over the last 5 years, highlighting strong earnings momentum and consistent growth execution.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Stock Skyrockets 15% After Reporting 400% YoY Growth in Net Profit appeared first on Trade Brains.