Ice Make's EBITDA margin landed at 6.9% in FY26. Management had guided 8% as a floor.
FY27 guidance is now 8-8.5%, cut from the 9.5-10.5% range management once called 'normal' after new capex.
What's new
- FY26 consolidated EBITDA margin was 6.9%, down from 9.1% in FY25 and below the 8% floor guided in Nov 2025.
- FY27 guidance is 8-8.5% EBITDA margin, down from the 9.5-10.5% range once promised after new capex.
- Revenue grew 39% to ₹668 cr in FY26, with Q4 at ₹255 cr up 41.8% year-on-year.
- Bharat Refrigeration shift to new premises was delayed from Q2 FY26 to FY27.
Themes from the call
Margins
Management sacrificed margins to build market share in new products, but the gap between guided and actual is now two missed targets in a row.
Growth
Revenue hit ₹668 cr, up 39%, and FY27 guidance is ₹850 cr, implying 27% growth on new categories like continuous panels and commercial freezers.
Capital allocation
Debt is at ₹36-37 cr, down from ₹48 cr, with no further borrowing planned. Phase-two capex is under board review, decision due in two months.
Guidance watch
- FY27 EBITDA margin guided at 8-8.5%, a downward revision from the prior 9.5-10.5% 'normal' range.
- FY27 revenue guidance is ₹850 cr, implying 27% growth.
- Management targets ₹1,000 cr revenue by FY28.
Risk flags
- Two consecutive years of margin misses: the 8% floor for FY26 was not met, and the post-capex normalization target has been cut by 100-200 bps.
- Bharat Refrigeration shift was delayed by several quarters, adding execution risk to subsidiary timelines.
- New product verticals are at break-even to slightly positive EBITDA, with margin recovery dependent on scaling and incentive normalization.
Key quotes
-
"Our EBITDA guidance is in the 8% to 8.5% range, but we are working internally to stretch beyond 8.5%."
— Management, Jun 2026 call -
"So, for the entire year, we will have around 8% EBITDA margin for the overall financial year."
— Management, Nov 2025 call
The brief
Ice Make Refrigeration grew revenue 39% to ₹668 cr in FY26. It is now guiding for ₹850 cr in FY27, a 27% jump. The top line is not the problem. The margin is. Management told investors in Nov 2025 that FY26 EBITDA margin would be at least 8%. It was 6.9%. The miss is not a surprise if one follows the trajectory. Management spent the year building distribution for new products, commercial freezers and continuous panels, which now make up 26% of revenue. It chose market share over profit, a defensible call for a company targeting ₹1,000 cr in three years. But it is the second miss. In Nov 2024, management said margins would normalize to 9.5-10.5% once the new capex stabilized. Now it guides to 8-8.5% for FY27. That is a 100-200 bps cut to the promised 'normal'. The Bharat Refrigeration shift, originally planned for Q2 FY26, only happened in FY27. It saves ₹55-60 lakhs in rent. It also adds to a pattern of execution delays. Debt has come down to ₹36-37 cr from ₹48 cr, and no further borrowing is planned. The company is funding growth from cash flow now. That is a positive. But the margin story is one of moving goalposts. The Q4 margin of 8.5% is in line with the new FY27 guidance, so the company may be stabilizing. For now, it is asking investors to accept a lower baseline than what was sold two years ago.
Ice Make is growing fast, but its margin promises have a habit of shrinking.