Ice Make Refrigeration Limited — Q4 FY25 earnings call

Call held 21 May 2025

Management summary

ICE Make Refrigeration delivered its highest ever annual revenue in FY25, driven by a strong Q4 performance and robust order book. However, profitability was impacted by increased operational costs from new CAPEX and delays in project operationalization. The company is strategically expanding into new verticals and geographies, with ambitious revenue and margin targets for FY26 and beyond, supported by ongoing CAPEX and potential M&A activities.

Highlights

  • Achieved highest ever revenue of Rs. 480.42 crore in FY25, representing a 26.8% YoY growth.

  • Q4 FY25 revenue surged to Rs. 180.82 crore, demonstrating 64% QoQ and 27% YoY growth.

  • Maintained a strong pending order book of Rs. 171 crores, providing good revenue visibility for FY26.

  • Successfully completed US certification for selective models, enhancing export potential.

Concerns

  • EBITDA margin for Q4 FY25 compressed to 12.08% from 14.9% in Q4 FY24 due to incremental operational costs of new CAPEX.

  • Full year FY25 EBITDA margin declined to 9.04% from 10.92% in FY24 due to pre-planned operational expenses for capital expansion.

  • Net profit for FY25 decreased to Rs. 22.9 crore from Rs. 26.14 crore in FY24, impacted by CAPEX delays and incremental expenses.

  • Missed the FY25 revenue target of Rs. 500 crore due to civil work delays in new vertical plants.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹180.82 Cr
    YoY +27% QoQ +64%
  • EBITDA
    ₹21.85 Cr
  • EBITDA Margin
    12.1%
  • PAT
    ₹11.66 Cr
  • EPS
    ₹7.42

FY25

  • Revenue
    ₹480.42 Cr
    YoY +26.8%
  • EBITDA
    ₹43.44 Cr
  • EBITDA Margin
    9%
  • Net Profit
    ₹22.9 Cr
  • EPS
    ₹14.65

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

  • Cold Room
    50.2% Revenue Contribution (FY25)
  • Commercial Refrigeration
    15.2% Revenue Contribution (FY25)
  • Ammonia & Industrial Refrigeration
    12% Revenue Contribution (FY25)
  • Transport Refrigeration
    7.4% Revenue Contribution (FY25)
  • Projects (PUF panels & Commercial Freezers)
    12.5% Revenue Contribution (FY25)₹20 Cr Revenue (Q4 FY25)₹23 Cr Revenue (FY25)

Order book

high confidence

Total value

₹171 Cr

as of 2025-03-31 quantified

Composition

Mix 2 client types
  • Jammu & Kashmir Horticulture Department ₹28.5 Cr 40.4%
  • West Bengal Government ₹42 Cr 59.6%

Share of order book by client type, derived from disclosed amounts

The pending order book is strong and provides high revenue visibility for the coming financial year, including significant government and export orders.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹20 Cr
    • Modernization and semi-automation of adjusting facility ₹20 Cr
    • Discontinuous panel investment ₹20 Cr
    • Phase 2 CAPEX for acquisition/collaboration ₹150 Cr
    • Chennai plant CAPEX ₹10 Cr
    Our current CAPEX is Rs. 20 crore and we will invest it in the discontinuous panel that contributes to the 50% of the business revenue. ... Actually the plan for phase two of CAPEX will be approximately Rs. 150 crore plus. ... We had already kept Chennai in the first phase. We have to do CAPEX around Rs. 10,000 crore and it is happening according to that schedule.
  • Debt Debt disclosed
    Although our goal was to cross Rs. 500 crore mark but due to the election in the beginning of the year there was a delay in some order we could cross Rs. 500 crore but still Q4's strong performance showed that we are moving in the right direction. Our core business has done a good performance. In coming years Company will get good growth with new plant and CAPEX investment. We have always given priority to quality customer satisfaction and innovation. Our goal is to make Ice Make a Rs. 1000 crore topline Company in the coming three-four years. Your trust is our biggest strength. We will move forward in the direction of quality customer satisfaction and innovation. Thank you.
  • M&A Deal Acquisition|joint venture · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    To close one opportunity in the current financial year for acquisition or collaboration.

    We can close one opportunity from that in the current financial year like any acquisition or collaboration can happen.
  • Liquidity Undrawn ₹20 Cr Company plans to increase fund limits by Rs. 20-25 crore to support aggressive business and working capital needs.
    We can increase the limit of fund around Rs. 20 crore to Rs. 25 crore because when we go for aggressive business then only it happen that we do not plan to utilize 100% but if bottleneck appears because of that to procure advance, or to provide service to customers or if we do not provide quick solution to convert into topline, we should not use these opportunity in aggressive business and we will work by keeping additional margin and buffer.

Guidance & targets

Revenue

  • Topline Revenue · FY28 · High confidence Rs. 1000 crore
    Our goal is to make Ice Make a Rs. 1000 crore topline Company in the coming three-four years.

    — Chandrakant P Patel

  • Revenue Capacity (post-CAPEX) Revenue · FY26 · High confidence Rs. 800-850 crore
    After all the CAPEX that we did, we will achieve topline of Rs. 800 crore - Rs. 850 crore.

    — Management

  • Revenue Target (existing plants) Revenue · FY26 · High confidence Rs. 650 crore
    We told this earlier and we also believe that with the full-fledged operation of two new plants we will achieve Rs. 650 crores.

    — Management

  • New Segments (PUF panel & commercial freezer) Contribution Revenue · FY26 · High confidence Rs. 175 crores
    For FY'26 it will be around Rs. 175 crores.

    — Management

  • New Plants Revenue Target Revenue · FY26 · High confidence Rs. 150 crore
    In new current financial year we have kept the target of Rs. 150 crore internally for new plant.

    — Management

  • Export Business Revenue · FY26 · Medium confidence Rs. 25 crore
    this year also we are considering a target of Rs. 25 crore business from export

    — Management

  • Chennai Plant Revenue Revenue · FY26 · Medium confidence Rs. 60 crore
    Approximately Rs. 60 crore of revenue can be generated.

    — Management

Capacity

  • PUF Panel (single shift) Capacity · FY26 · Medium confidence Rs. 225-250 crore
    If we talk about continuous panel we can expect a topline of Rs. 225 crore- Rs. 250 crore at a single shift full fledge working

    — Management

  • Commercial Freezer Capacity · FY26 · Medium confidence Rs. 130 crores
    and for commercial freezer we can generate a topline of Rs. 130 crores.

    — Management

  • New Capacity Utilization Capacity · 3-4 years · Medium confidence Optimum level
    It could take around three, four years to take in on optimum level.

    — Management

Profitability

  • EBITDA Margin Profitability · FY26 · High confidence 9.5% to 10.5%
    I think our margin in the next financial year would be in the sustainable range of 9.5% to 10.5%.

    — Management

  • New Segments EBITDA Margin Profitability · FY26 · Medium confidence 7% to 8%
    in this business we can reach the EBITDA of 7% to 8%, we are expecting Rs. 130 crores.

    — Management

  • Ammonia Segment Gross Margin Profitability · FY26 · High confidence 10% to 14%
    In ammonia, we have a gross margin around 10% to 14%.

    — Management

Debt

  • Finance Cost Debt · FY26 · High confidence Rs. 8-10 crores
    In terms of numbers can we expect the finance cost remain around Rs. 8 crore Rs. 10 crores for the year?

    — Management

Working Capital

  • Working Capital Days Working Capital · FY26 · Medium confidence around 6x
    We can expect working capital around 6x if we go aggressively then we can go slightly here and there but it would not make much difference.

    — Management

What to watch in Q1 FY26

New CAPEX Revenue Contribution

Next quarter (for progress updates), FY26 (for full year target)
Current Rs. 23 crore (Q4 FY25 contribution from new businesses)
Target Rs. 150 crore (FY26 target from new plants)

Why it matters

Crucial for achieving FY26 revenue targets and improving overall margins as operational costs are currently impacting profitability.

In new current financial year we have kept the target of Rs. 150 crore internally for new plant.

Risks & concerns

  • Margin Pressure from New CAPEX Operational Costs

    medium

    Q4 FY25 EBITDA margin was 12.08% (vs 14.9% in Q4 FY24) and FY25 EBITDA margin was 9.04% (vs 10.92% in FY24) due to incremental operational costs of new CAPEX and pre-planned operational expenses for capital expansion.

    Management acknowledged

  • Delay in New CAPEX Operationalization

    medium

    Civil work delays in new vertical plants led to missing the Rs. 500 crore FY25 topline target and compressed net profit for FY25.

    Management acknowledged

  • Increased Inventory and Working Capital

    medium

    Inventory increased to Rs. 100 crore (from Rs. 60-70 crore) due to raw material procurement for new plants and advance payments from customers to avoid short supply, impacting working capital.

    Management acknowledged

  • Competition in Visicooler Segment

    low

    Acknowledged competition from Rockwell and Western companies in the visicooler segment, but management expressed confidence in their product quality and brand image.

    Analyst downplayed

  • Seasonality of New Products

    low

    New products like visicoolers and chest freezers are in their first year and subject to seasonal demand (summer), though quick commerce demand is less seasonal.

    Analyst acknowledged

Q&A highlights

8 direct
New Segment Revenue & Margin for FY26 Direct
For FY'26 it will be around Rs. 175 crores. ... In ammonia, we have a gross margin around 10% to 14%.

Clarified the expected revenue contribution and profitability of new segments (PUF panel, commercial freezer) and the ammonia segment for the upcoming fiscal year.

Asked by Arnav

PUF Panel for Building Insulation Direct
We can use this in insulation, other than that PEB building, warehouse all the perishable products that does not require cold room... this market is bigger than cold room market. We are trying in it because it has only been five months since we receive the product.

Revealed a strategic expansion plan for PUF panels beyond refrigeration into the larger building insulation market, indicating a new growth avenue.

Asked by Shashi

Delay in achieving FY25 topline target of Rs. 500 crore Direct
The first reason is our new vertical and both the plants operation got delayed due to the civil. Civil work go delayed. ... the two new plants that have been set up, we have to keep raw material procurement. ... we increased our inventory a bit.

Explained the reasons for missing the FY25 revenue target, attributing it to CAPEX delays and strategic inventory buildup, which also impacted working capital.

Asked by Tej

Overall demand outlook and seasonality impact Direct
Refrigeration is mostly planned in the fourth quarter in advance, cold room. This is our first year in visicooler and chest freezer, we are facing the first quarter. ... quick commerce, the boom is still good. There is no impact of season and off-season.

Provided insights into demand drivers across different segments and how new businesses are navigating seasonality, highlighting the resilience of quick commerce.

Asked by Tej

Export business and US certification progress Direct
Recently the certification process has been completed and in selective models which we had applied our approval has been done. ... We are considering a target of Rs. 25 crore business from export and the margin that you are talking about, margin is service based considering a product.

Confirmed the completion of US certification for certain products and outlined a clear export revenue target for FY26, indicating a push for international market penetration.

Asked by Tej

Phase 2 CAPEX plans and funding Direct
the plan for phase two of CAPEX will be approximately Rs. 150 crore plus. ... we will not plan the CAPEX in continuous PUF panel in that area. Rest, we are eyeing two, three opportunity in front of us in the current financial year. We can close one opportunity from that in the current financial year like any acquisition or collaboration can happen.

Clarified that the next phase of CAPEX is primarily for strategic acquisitions or collaborations rather than traditional plant expansion, signaling a shift in growth strategy.

Asked by Resha Mehta

FY26 revenue and EBITDA margin guidance Direct
We told this earlier and we also believe that with the full-fledged operation of two new plants we will achieve Rs. 650 crores. ... I think our margin in the next financial year would be in the sustainable range of 9.5% to 10.5%.

Reiterated the FY26 revenue target post-CAPEX and provided a clear range for the sustainable EBITDA margin, offering crucial forward-looking financial guidance.

Asked by Mosam Shah

Chennai plant operationalization and revenue generation Direct
If we talk about Chennai plant civil construction work is going on and it will be finished by July or by end of the quarter and by next quarter we will shift there. It will be operative in the next quarter end. And the CAPEX of Rs. 20,000 crore which we talked about earlier, Bharat or Chennai does not have investment ratio in that. It will be additional... Approximately Rs. 60 crore of revenue can be generated.

Provided a timeline for the Chennai plant's operationalization and its expected revenue contribution, highlighting a new regional manufacturing and sales hub.

Asked by Tej

3 min read 6 chapters

Detailed narrative

Strong Q4 and FY25 Revenue Performance

ICE Make Refrigeration achieved its highest ever annual revenue of Rs. 480.42 crore in FY25, marking a 26.8% year-on-year growth compared to Rs. 379 crore in FY24. The fourth quarter of FY25 was particularly robust, with revenue reaching Rs. 180.82 crore, a significant 64% quarter-on-quarter and 27% year-on-year increase. This strong performance was attributed to team efforts, a healthy order book, and better execution, despite missing the initial Rs. 500 crore target due to election-related delays.

Margin Compression Due to CAPEX and Operational Costs

Despite strong revenue growth, profitability faced headwinds. The EBITDA margin for Q4 FY25 was 12.08%, down from 14.9% in Q4 FY24, primarily due to incremental operational costs associated with new CAPEX. For the full year FY25, the EBITDA margin stood at 9.04%, a decrease from 10.92% in FY24, attributed to pre-planned operational expenses for capital expansion and delays in new CAPEX operationalization. Net profit for FY25 also saw a decline to Rs. 22.9 crore from Rs. 26.14 crore in FY24 due to these factors and increased interest burden.

Strategic Expansion into New Verticals and Markets

The company is actively diversifying its product portfolio and market reach. New segments, including continuous PUF panels and commercial freezers, contributed approximately Rs. 23 crore in FY25, with a Q4 contribution of Rs. 20 crore. Management projects these new verticals to contribute Rs. 175 crore in FY26, with a potential capacity of Rs. 225-250 crore for PUF panels and Rs. 130 crore for commercial freezers at single shift. The company is also exploring the use of PUF panels for building insulation, identifying it as a larger market than cold rooms, and is actively engaging with building material traders and PEB manufacturers.

Robust Order Book and Future Growth Outlook

ICE Make maintains a strong pending order book of Rs. 171 crore, which includes significant orders such as Rs. 28.5 crore from the Jammu & Kashmir horticulture department and Rs. 42 crore from the West Bengal government. This provides strong revenue visibility for FY26. The company has set an ambitious goal to achieve a Rs. 1000 crore topline by FY28. For FY26, the revenue target from existing plants is Rs. 650 crore, with an overall capacity of Rs. 800-850 crore after the completion of CAPEX.

Capital Allocation and Debt Management

Current CAPEX for modernization and semi-automation, including investment in discontinuous panels, stands at Rs. 20 crore. A Phase 2 CAPEX of over Rs. 150 crore is planned for FY26-27, primarily for acquisition or collaboration opportunities rather than new land or plant construction. The Chennai plant, part of the first phase CAPEX (Rs. 10 crore), is expected to be operational by the end of the next quarter and generate approximately Rs. 60 crore in revenue. While debt may increase to support aggressive growth, the company aims to keep finance costs for FY26 between Rs. 8-10 crore and increase working capital limits by Rs. 20-25 crore.

Geographic and Segmental Performance

In FY25, the cold room vertical remained the largest revenue contributor at 50.17%, followed by commercial refrigeration at 15.17%, and ammonia/industrial refrigeration combined at 12%. Transport refrigeration contributed 7.42%. Geographically, the West region accounted for 51% of revenue, while the East and South regions showed strong growth, contributing 18% and 14% respectively. The North contributed 11%. The company is targeting Rs. 25 crore from export business in FY26, bolstered by recent US certification for selective models and local employee presence in Nepal.

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