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.