Consolidated PAT Jumps 165% YoY on Neemrana Ramp; Beats Street, Prior Guidance
PAT +164.85% YoY · revenue +118.87% · margins expanding · beat vs street
₹252.32 Cr
+118.87% YoY
₹32.9 Cr
+164.85% YoY
12.9%
+2.5pp YoY
₹5.2
KRN's consolidated Q1FY27 print — revenue ₹252.32 Cr (+118.9% YoY, +40.6% QoQ) and PAT ₹32.90 Cr (+164.9% YoY, +40.8% QoQ) — clears the pre-result Street bar comfortably. Our preview had flagged ₹125–150 Cr revenue and 9–12% NPM/13–16% OPM as the expectation going in; the actual print (OPM 19.4%, NPM 12.9%) beats every metric in that range, and revenue alone is 68–100% above the top of the expected band. Against management's own Q4FY26 guidance — 50% utilisation at the new facility, doubling export revenue, and only "slight" margin improvement — the company has already overshot on exports (₹52.38 Cr this quarter vs ₹18.89 Cr a year ago, +177% YoY, well past a doubling) and on margins (OPM +418bps YoY, not slight) inside the very first quarter of the guided year.
Q1 FY-2027 vs prior quarters
The margin bridge sits mostly on operating leverage from the new Neemrana subsidiary rather than the parent: standalone OPM is 13.6% and NPM 10.1%, both well below the consolidated 19.4%/12.9%, meaning the higher-margin incremental volume is coming from the group's new capacity, not the existing standalone business. That also explains why standalone growth (+59% revenue, +19% PAT YoY) looks far more ordinary than the headline consolidated numbers — readers should anchor on the group figure as primary but not mistake it for organic parent-level growth.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 4 consecutive quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
EPS ₹5.20 consolidated (not annualised) vs ₹3.75 in Q4FY26 and ₹2.00 a year ago
Management guides for strong growth in FY27, targeting 50% capacity utilization at the new facility and aiming to double export revenue. They anticipate slight margin improvement driven by operating leverage, government incentives, and higher export margins, despite increased depreciation and overhead. Strategically, t
— This quarter: beat
Corporate developments this quarter tie directly into the ramp story: both the ₹311.12 Cr IPO proceeds and the ₹341.79 Cr QIP raised in May–June 2026 are now fully utilised with no deviation flagged, funding the Neemrana facility and subsidiary working capital that are already showing up in this quarter's output. The board also appointed new cost and internal auditors for FY27, a routine governance item. No standalone management press release/commentary was available beyond the board-outcome filing, so there is no separate management framing to reconcile against the numbers this quarter.
W1
Neemrana facility capacity utilisation — not disclosed as a % this quarter; management's FY27 target is 50%, next print should make this explicit
W2
Data-center cooling revenue mix/growth rate — not broken out separately in this filing (only India ₹199.94 Cr vs overseas ₹52.38 Cr segment split given); watch for explicit disclosure
W3
Margin sustainability as subsidiary scales — QoQ OPM gain was modest (+0.75pp) versus the sharp YoY jump (+418bps); confirm operating leverage continues into Q2
Both statements clean and typed, all lines tie out exactly incl. cross-check vs DB's Q4FY26/Q1FY26 figures; no exceptional items this quarter or in either comparison quarter, so no adjusted-PAT figure needed; consolidated PAT driven substantially by new subsidiary KRN HVAC Products (Neemrana facility, ₹167.19cr income/₹14.23cr PAT this quarter) vs modest standalone growth; filing does not disclose Neemrana capacity utilisation % or data-center-specific revenue mix.
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