KRN Heat Exchanger Shares Surge 4.18% Following Acquisition of Sphere’s Bus AC Division

Mumbai, Oct 7, 2025: Shares of KRN Heat Exchanger and Refrigeration Ltd (NSE: KRN, BSE: 544263) surged 4.18% to ₹861.80 in early trading on Tuesday, as of 12:01 pm IST, following the announcement of its acquisition of the Bus Air-Conditioning division of Sphere Refrigeration Systems Pvt. Ltd. The stock opened at ₹848.70 and touched an intraday high of ₹892.00, reflecting positive market reaction to KRN’s strategic move to strengthen its presence in the automotive HVAC segment.

KRN, founded in 2017, makes HVAC&R condensers, evaporators, and water coils from aluminum and copper fin-and-tube heat exchangers in Neemrana, Rajasthan. The 1.5 lakh sq. ft. plant produces over one million units annually, with 23% exported. KRN reported FY25 sales of ₹441.71 crore, EBITDA of ₹70.51 crore, and net profit of ₹52.88 crore.

Strategic Acquisition

KRN HVAC Products Pvt. Ltd., a wholly owned subsidiary of KRN, has signed a Business Transfer Agreement (BTA) with SRSPL to acquire its Bus Air-Conditioning segment, encompassing operations, assets, and employees. This strategic acquisition is set to expand KRN’s portfolio of cooling solutions for transportation and mobility, enhancing its sales, profitability, and market presence over time.

The deal also enables KRN to diversify into HVAC solutions across industrial, commercial, and mobility sectors. With India’s transportation industry witnessing rapid growth, demand for energy-efficient and passenger-comfort-focused bus air-conditioning systems is rising, positioning KRN to capitalise on this expanding market segment.

Management Commentary

Santosh Kumar, Chairman and Managing Director of KRN Heat Exchanger, said the acquisition “marks an important step in KRN’s continued growth and diversification. The addition of Sphere’s Bus Air-Conditioning business strengthens our presence in the automotive HVAC segment and supports our goal of becoming a complete solutions provider. We welcome the Sphere team, whose expertise aligns with our long-term vision.”

Sphere Refrigeration Systems Pvt. Ltd. was founded by industry veterans Sandeep Singh, Pramod Verma, and Sukhdev Singh, who collectively bring over 85 years of experience in automotive HVAC and refrigeration. The firm has supplied to brands including Ford India, Blue Star, Spheros, Cryopump, and Bergstrom.

Market Snapshot

KRN stock saw significant gains on the NSE Microcap 250 index at 9:57 a.m. IST, with 16.2 lakh shares exchanged and ₹141.19 crore in total. The stock has outperformed the index by nearly 115% in the past year. Its 52-week trading range is ₹402.10–₹1,012.00, with a market worth of ₹5,402.03 crore.

REF: https://nsearchives.nseindia.com/corporate/KRNHEAT_06102025202126_releasesigned.pdf

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