Ice Make Refrigeration Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Ice Make Refrigeration Limited reported robust Q3 FY26 consolidated revenue of ₹153.36 crore, driven by sustained momentum across industrial refrigeration, cold chain, and commercial cooling segments. The company holds a strong order book of ₹180+ crore and has provided an ambitious revenue guidance of ₹1,000 crore by FY28. While input costs and finance expenses continue to pressure margins, management expects improvement from Q4 FY26 through strategic pricing adjustments and operational efficiencies, with new verticals contributing significantly to growth.

Highlights

  • Consolidated Revenue for Q3 FY26 was ₹153.36 crore, showing robust year-on-year growth.

  • Order book stands at approximately ₹180+ crore, indicating strong future revenue visibility.

  • The company has provided an ambitious revenue guidance of ₹1,000 crore by FY28.

  • Customer feedback for new product lines (Continuous Panels and Commercial Freezers) is positive, with strong brand recall and established distribution channels.

  • Subsidiaries like Bharat Refrigerations are performing well, with ₹10 crore sales in the current quarter and significant growth from ₹2 crore to ₹34-35 crore last year.

Concerns

  • Input costs and finance expenses continued to exert pressure on margins during the quarter.

  • Entry-stage strategy for new verticals has temporarily compressed overall margins, with breakeven for Continuous Panels at ₹80-82 crore and Commercial Freezers at ₹50-55 crore.

  • The impact of elevated finance costs and depreciation is expected to continue for around four quarters.

  • Management stated that specific EBITDA numbers for new verticals cannot be provided as the full year is not yet completed.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹153.36 Cr
  • Consolidated PBT
    ₹1.9 Cr
  • Consolidated PAT
    ₹1.45 Cr

9M

  • FY26 Standalone Revenue
    ₹437.76 Cr
  • FY26 Standalone PAT
    ₹1.17 Cr
  • FY25 Consolidated Revenue
    ₹412.35 Cr

What they filed

Q1 FY27: revenue up 60.4%, net profit down 12.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue103 111 180 112 147 +43%153 +39%256 +42%179 +60%
EBITDA8 7 21 4 10 +14%10 +48%21 +0%3 −32%
Net profit5 3 12 -1 2 −58%1 −48%10 −13%-2 −13%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • 9-Month Business Split (FY26)
    47% Cold Room Contribution3% Industrial Refrigeration Contribution12% Traditional Commercial Vertical Contribution5% Transport Refrigeration Contribution10% Ammonia & Projects Combined Contribution13% Continuous Panels Contribution8% Freezers (New Commercial Vertical) Contribution

Order book

high confidence

Total value

₹180 Cr

as of 2025-12-31 range

Execution

by the end of this financial year

The current order book provides confidence in achieving financial year goals.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Additional capex for new verticals to reach ₹350 crore contribution ₹15 Cr
    I don't think more than ₹15–20 crore capex would be needed.
  • Debt Debt disclosed
    As of now, long-term debt is around ₹105–119 crore (approximate range mentioned). Going forward, debt will reduce.
  • M&A Bharat Refrigerations Acquisition · Integrated

    Expanded geographical reach and service capabilities, especially in the south.

    Contributed ₹10 crore in sales in the current quarter, grew from ₹2 crore topline when acquired in 2016.

    Bharat Refrigerations was acquired in 2016 and is our wholly owned subsidiary. In the current quarter, we have done ₹10 crore of sales from that subsidiary... Last year, we achieved around 34–35 crore topline from it.
  • M&A Ice Best Acquisition · Integrated

    Pilot project to tap the eastern market and understand the business environment.

    Shows strong future potential and helps in geographical expansion.

    Ice Best is a recently opened subsidiary-you may call it a pilot project. We are tapping the eastern market to understand the business environment there.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence ₹650 crore
    For the current year, we have given guidance of ₹650 crore, and we will achieve that.

    — Management

  • FY27 Revenue Revenue · FY27 · High confidence ₹800-825 crore
    For FY27 — that is the next financial year after the current one — based on the guidance we have given, we expect around ₹800–825 crore topline in the next financial year.

    — Management

  • FY28 Revenue Revenue · FY28 · High confidence ₹1,000 crore
    For the following year, we have given a plan of ₹1,000 crore, and under that plan, we should reach 1,000 crores in that financial year.

    — Management

Profitability

  • FY26 EBITDA Margin Profitability · FY26 · Medium confidence 7.5-8%
    For the current financial year, we believe somewhere around 7.5–8% range is possible. Q4 business outlook is good, so EBITDA should improve. But for this year, around 7.5–8% seems achievable.

    — Management

  • EBITDA Margin at ₹1,000 crore revenue Profitability · by FY28 · High confidence 9-10%
    Up to ₹1,000 crore, we will continue operating within the 9–10% range. That is a fair expectation for margins.

    — Management

Breakeven

  • Continuous Panels Breakeven Breakeven · full year · High confidence ₹80-82 crore
    In Continuous Panels, breakeven comes at around ₹80–82 crore on a holistic basis considering WDV depreciation.

    — Management

  • Commercial Freezers Breakeven Breakeven · full year · High confidence ₹50-55 crore
    For Commercial Freezers, breakeven is somewhere around ₹50-55 crore.

    — Management

Revenue Contribution

  • New Verticals (Continuous Panels & Commercial Freezers) Full Year Contribution Revenue Contribution · full year · High confidence ₹140-150 crore
    For the full year, we expect combined contribution of around ₹140-150 crore from these two verticals.

    — Management

  • Continuous Panels FY Contribution Revenue Contribution · FY26 · High confidence ₹90 crore
    We expect around ₹90 crore topline contribution from Continuous Panels this year.

    — Management

What to watch in Q4 FY26

Q4 FY26 Margin Improvement

next quarter
Current Margins under pressure due to input costs and finance expenses
Target Visible improvement in margins due to increased selling prices and vendor negotiations

Why it matters

To confirm the effectiveness of strategic pricing and cost control measures on profitability.

In Commercial Freezers specifically, we negotiated with vendors and brought procurement to a better pricing level. In the upcoming Q4, we have also increased selling prices slightly... Going forward from Q4, you will see improvement in our pricing strategy.

Risks & concerns

  • Elevated finance costs and depreciation

    medium

    Finance costs and depreciation remain elevated due to expansion initiatives, impacting margins.

    Management acknowledged

  • Input cost pressure

    medium

    Input costs continued to exert pressure on margins during the quarter.

    Management acknowledged

  • Temporary margin compression from new verticals

    medium

    Entry-stage strategy for new verticals has resulted in temporary pressure on overall margins.

    Management acknowledged

  • Limited margin expansion for mass-production products

    low

    Mass-production products like Continuous Panels and Commercial Freezers have inherent margin limitations to achieve volumes.

    Management acknowledged

  • Geographic limitations for Continuous Panels logistics

    low

    Continuous Panels are bulky, making logistics inefficient beyond a certain radius, potentially requiring a second manufacturing facility.

    Management acknowledged

  • Backward integration by large PEB players

    low

    Concern that large PEB players might manufacture their own PUF panels, but management noted not all have the capability and market growth creates opportunities.

    Analyst downplayed

Q&A highlights

4 direct, 3 evasive
EBITDA for new verticals (Continuous Panels and Commercial Freezers) Evasive
Since the full year is not yet completed, we cannot provide specific numbers at this stage.

Management declined to provide profitability metrics for new, high-growth segments, making it difficult to assess their current financial impact.

Asked by Tej Patel

Future margins and working capital for new businesses Partial
It cannot go much higher because these are mass-production products. If you try to take higher margins, you will not be able to achieve volumes.

Management clarified that while margins will improve, they are capped at 9-10% for mass-production products, indicating a strategic trade-off between volume and margin.

Asked by Tej Patel

Impact of capex on margins and duration Direct
We believe the impact will remain for around four quarters, until the scale of operations increases. We have taken the loan for five years on a reduced balance basis.

Management provided a clear timeline for when the margin compression due to capex and associated costs is expected to ease.

Asked by Mehul Shah

Capex plan for the next two years Evasive
We have multiple options for capex. We have not frozen the specific mode yet. It is difficult to quantify at this stage.

Management deferred providing a concrete capex plan for the next two years, indicating uncertainty or ongoing strategic evaluation.

Asked by Bhargav Buddhadev

Fundraising plans after authorized capital increase Evasive
At this point in time, we cannot comment exactly on such possibilities. We have increased the authorized capital, but as of now, no concrete final decision has been taken.

Management did not provide clarity on potential fundraising despite increasing authorized capital, leaving investors to speculate on future capital needs.

Asked by Dhananjay Yadav

Operating margin compression and bottom-line growth Direct
Whenever capex is undertaken in this industry, revenue contribution does not immediately offset the cost. It is a cycle. We invest today, optimize over the next 2-3 years, and then bottom-line expansion becomes stronger.

Management explained the cyclical nature of capex impact on profitability, providing context for current margin pressures and future recovery.

Asked by Khursheed

Risk of backward integration by large PEB players for PUF panels Direct
However, not all PEB solution providers have the scale and capability to manufacture continuous panels themselves. Also, the conversion from conventional buildings to PEB structures is increasing across industrial, warehouse, and commercial segments. That creates opportunity.

Management acknowledged the risk but provided a nuanced view, highlighting their focus on the cold chain segment and broader market opportunities that mitigate the threat.

Asked by Tej Patel

FY26 consolidated EBITDA target and new business breakeven Direct
Yes, we expect to close the current financial year to around 8% EBITDA.

Management confirmed the FY26 consolidated EBITDA target and clarified inventory management for Continuous Panels, providing specific financial outlook.

Asked by Tej Patel

2 min read 6 chapters

Detailed narrative

Q3 FY26 Financial Performance Overview

For Q3 FY26, Ice Make Refrigeration reported a consolidated revenue of ₹153.36 crore, demonstrating robust year-on-year growth. Consolidated Profit Before Tax (PBT) stood at ₹1.90 crore, with Profit After Tax (PAT) at ₹1.45 crore. On a standalone basis, revenue from operations was ₹153.21 crore, and PAT was ₹1.11 crore. For the first nine months of FY26, standalone revenue from operations reached ₹437.76 crore, with PAT at ₹1.17 crore, while consolidated revenue for the nine months ended December 31, 2025, was ₹412.35 crore.

Strategic Priorities and Market Expansion

The company's key priorities include strengthening regional penetration, improving operational efficiency, and aligning systems for future growth. Ice Make is expanding its retail footprint and last-mile connectivity, increasing presence in HoReCa, pharmaceutical, and food processing industries, and enhancing manufacturing efficiency and product innovation. The company showcased its product portfolio at major industry platforms like HoReCa exhibitions in Gandhinagar and dairy exhibitions in New Delhi, reinforcing its market presence.

New Verticals: Continuous Panels and Commercial Freezers

The new verticals, Continuous Panels and Commercial Freezers, are crucial for future growth. For the nine months ended December 2025, Continuous Panels contributed around ₹56 crore in sales, and Commercial Freezers contributed approximately ₹34 crore. For the full year, these two verticals are expected to collectively contribute ₹140-150 crore. Breakeven for Continuous Panels is estimated at ₹80-82 crore and for Commercial Freezers at ₹50-55 crore, with management expecting single-digit EBITDA margins (9-10%) at full utilization.

Margin Outlook and Cost Pressures

During the quarter, input costs and finance expenses continued to exert pressure on margins. The entry-stage strategy for new verticals also temporarily compressed overall margins. Management expects the impact of elevated finance costs and depreciation to persist for about four quarters. However, they anticipate margin improvement from Q4 FY26 due to strategic price increases and vendor negotiations, guiding for a 7.5-8% EBITDA margin for FY26 and 9-10% at ₹1,000 crore revenue.

Order Book and Future Revenue Guidance

Ice Make holds a robust order book of approximately ₹180+ crore, providing strong revenue visibility. The company has set ambitious revenue targets: ₹650 crore for FY26, ₹800-825 crore for FY27, and ₹1,000 crore for FY28. Management is confident in achieving these goals, leveraging its diversified product portfolio and expanding market reach. The existing capacity for new verticals is around ₹400 crore in revenue terms, with only ₹15-20 crore additional capex needed to reach ₹325-350 crore contribution from these segments.

Subsidiary Performance and Geographical Expansion

Bharat Refrigerations, a wholly-owned subsidiary acquired in 2016, contributed ₹10 crore in sales this quarter and grew its topline from ₹2 crore to ₹34-35 crore last year. Ice Best, a recently opened subsidiary, is a pilot project focused on tapping the eastern market. The company is expanding geographically, with plans to shift operations to acquired land in the South by next quarter and continuously onboarding new dealers, particularly in the South, which is a key focus region.

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