Shree Refrigerations grows revenue 55% as working capital cycle shrinks
Revenue hit ₹153.55 crore for FY26, while the company cut its working capital cycle to 370 days. The order book now stands at 1.8 times annual revenue.
What's new
- Revenue rose 55.5% to ₹153.55 crore for the year ended March 31, 2026.
- Net profit climbed 64.7% to ₹21.40 crore.
- Working capital cycle narrowed to 370 days from 570 days.
Why this matters
The sharp reduction in the working capital cycle is the most telling metric here. It suggests that the company is finally converting its HVAC investments into actual cash flow. The order book of ₹270.77 crore provides a clear runway for the next 18 months.
What we're watching
- Whether the company can maintain this pace of cash conversion.
- Execution on the ₹270.77 crore order book.
- Further updates on HVAC market share gains.
The full read
Shree Refrigerations closed FY26 with ₹153.55 crore in revenue, a 55.5% jump over the prior year. Net profit followed suit, rising 64.7% to ₹21.40 crore.
Efficiency improved.
The working capital cycle dropped to 370 days from 570 days a year ago, suggesting that the investments made in HVAC capabilities during the first half of the year are finally paying off in terms of operational speed. With an order book of ₹270.77 crore, the company now holds a backlog worth 1.8 times its annual revenue, providing a clear path for growth if the management team can maintain this pace without the heavy capital intensity required during the initial build-out phase.
Questions answered
- What drove the profit growth in FY26?
- Management attributes the 64.7% profit growth to strong execution in the second half of the year. This followed earlier investments made to build out the company's HVAC capabilities.
- How does the current order book compare to annual revenue?
- The order book stands at ₹270.77 crore, which is 1.8 times the company's annual revenue of ₹153.55 crore.
- Has the company's liquidity position improved?
- Yes, the working capital cycle narrowed to 370 days from 570 days in the previous year. This indicates a faster conversion of operations into cash.
- Is there any new information in this press release?
- No. This release provides additional commentary on previously disclosed financial results but contains no new material information.