Ice Make Refrigeration Limited (ICEMAKE) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. I am Sagar, the moderator for this conference call. Welcome to the earnings conference call of Ice Make Refrigeration Limited, arranged by AARYANA MATASCO to discuss the financial results for Q2 and H1 FY '26. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Aryan Rana. Thank you, and over to you, sir.

Thank you, Sagar. Good afternoon, everyone, and a very warm welcome to the Ice Make Refrigeration Limited's Q2 FY '26 Earnings Conference Call. Thank you for taking time to join us today. The company's financial results for the quarter are available on our website as well as on the stock exchanges where Ice Make is listed. Before we begin, I would like to remind you that today's discussion may include forward-looking statements. These statements are based on the company's current expectations, assumptions and projections about future events and are subject to risks and uncertainties, both known and unknown, that may cause actual results to differ materially. We encourage participants to consider these statements in conjunction with the risk factors disclosed in our investor presentations and regulatory filings. We have distinguished management present here with us today. It's my privilege to introduce the leadership team joining us on the call today. Mr. Chandrakant P. Patel, Chairman and Managing Director; Mr. Nikhil Bhatt, Vice President, Strategy; Mr. Ankit Patel, Chief Financial Officer; and Mr. Mandar Desai, Company Secretary and Compliance Officer. Today's agenda for call is during the session, the management will discuss the financial and operational performance of Q2 FY '26 and half year ended 30th September 2025. Key strategic developments and business drivers, emerging market opportunities across our 4 sectors, the company's growth roadmap and priorities. With that, I would like to hand over the call to our Managing Director and Chairman, Mr. Chandrakant P. Patel, sir. Over to you, sir.

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Thank you, MD, sir. I will now present a brief financial overview for Q2 FY '26 for stand-alone performance of Q2 FY '26. Revenue from operations stood at INR 148 crores, that is 47% year-on-year growth and 33% quarter-on-quarter. EBITDA in amount came at INR 8.78 crores compared to INR 4.44 crores in Q1 FY '26. EBITDA margin improved to 5.90% in Q2 FY '26, mainly due to increase in scale of operations -- our profit after tax stood at INR 1.45 crores improved from loss of INR 1.39 crores in previous Q1 FY '26. For consolidated performance, revenue from operations stood at INR 147.49 crores, that is 43% growth in year-on-year and 32% quarter-on-quarter. EBITDA came at INR 9.70 crores compared to INR 4.53 crores in Q1 FY '26. The EBITDA margin improved to 6.59% in Q2 FY '26. Again, the main reason is due to scale of operations improvement. Profit after tax stood at INR 2.02 crores, improved from loss of INR 1.47 crore in Q1 FY '26. The margin improvement was driven by better capacity utilization. We are showing improvement in margin quarter-on-quarter. According to our past trends, our first half business contributes around 40% of our annual business and the rest 60% in second half of the full financial year. We remain committed to strengthening our balance sheet and supporting future growth through prudent financial management. Thank you. With that, I request our Strategy Head, Mr. Nikhil Bhatt, to give you business updates.

Thank you, Ankit bhai. I would like to share with some business updates and our growth strategy going ahead. In Q2 FY '26, strong -- we have observed a strong traction in cold rooms, refrigeration system and industrial cooling units, increase in demand from food processing, dairy, meat, pharma and health care industries driven by sectorial growth. Positive momentum in turnkey cold chain projects across India, expanding inquiries for energy efficient and eco-friendly refrigeration technologies, strengthening presence in Eastern, Central and Southern regions also. Regarding strategic priority and growth roadmap, there are multipronged approach expansion strategies like capacity expansion and utilization of full capacity, automation, technology upgradation, deeper penetration into high potential regions by strengthening channel partners ecosystems. Regarding product innovation and portfolio enhancements, we have energy efficient, low maintenance and sustainable solutions, new age refrigeration and cooling systems for evolving industrial needs. So far as sectoral expansion is concerned, there are expansion -- we are observing expansion in agriculture and food supply chains, pharmaceuticals and health care cold chain sector. Big commerce is also increasing in a fast growth. We are -- we have a contribution of around 21% in the H1 of the '26. The digital and operational excellence, their improvement in project management and digital monitoring systems as well as the reducing delivery times. We are confident that this initiative and looking to the order on hand of about INR 190 crores, we will definitely achieve our goals in current financial year. Thank you.

Sir, should we open the floor for questions?

Yes.

[Operator Instructions] Our first question comes from the line of from Ambit Capital.

So my first question is with regards to the guidance. So in the last call, we had spoken about achieving INR 650 crores of revenue with around 8% to 9% of EBITDA margins. So are we sticking with this guidance? Or is there any revision to this guidance?

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And in your opening statement, you were mentioning a margin improvement of around 1%, which can come through price increases. So just wanted to ask about this. So I mean, how long will it take for this 1% increase to be realized? And which are the key segments in which these prices can be increased?

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And my last question, is there any update on a next phase of CapEx that we've been discussing, the INR 150 crore CapEx that we mentioned in some of our previous calls?

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Thank you. Our next question comes from the line of Resha Mehta from GreenEdge Wealth. Please go ahead.

Basically, [Foreign Language]

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[Foreign Language] How much is the land...

Around INR 10.5 crores is around land...

[Foreign Language] INR 150 CapEx, right?

Yes.

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[Foreign Language] So how do we plan to fund this? Is it [Foreign Language]

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And last one [Foreign Language]

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[Foreign Language] And what is our target of our vision to keep it at what levels because [Foreign Language] that levels are increasing, we may raise more equity as well. Working capital [Foreign Language] effectively, our return on capital employed is coming under pressure. So what is the pathway in the next 2 years, let's say, once all of this is behind [Foreign Language]

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[Operator Instructions] Our next question comes from the line of Arjun Mali from Niveshaay, please go ahead.

Congratulations for the good sets of number sir. I wanted to know what was the gross margin and decline in the current 2% rate. So based on the higher contribution from the...

Arjun sir, your voice is sounding slightly muffled. May I request you use the handset in case of you are using the speaker mode, please?

Sure, so, my first question is like our gross margin has declined around 2 percentage so, is this due to the higher contribution from the continuous panel?

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[Foreign Language] sorry.

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Sir, you are sounding muffled again.

Okay, I am asking, what was EBITDA loss in the new business?

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Yes.

[Operator Instructions] Our next question comes from the line of Ruchika Modi from 360 One Wealth. Please go ahead.

[Foreign Language] We read the news that foreign beverages is also getting into refrigeration equipment segment. [Foreign Language] if that goes through. So, even if we achieve the INR 1000 crore turnover, are we seeing a delay in EBITDA margin of 10%, 11% and ROCE of 25% that you target internally?

Madam, ROCE [Foreign Language]

[Foreign Language] ROCE and EBITDA margin might get a little delayed also, right?

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And on the competitive landscape, sir?

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Our next question comes from the line of Mausam Shah from Wealth Guardian. Please go ahead.

Congratulations on a good set of numbers. [Foreign Language]

I am sorry to interrupt ma'am again. Your audio is coming through very low.

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[Operator Instructions] Our next question comes from the line of Shubhanu from Three Heads Capital.

Sir, can you tell me our revenue mix one more time? I missed that.

Okay, Revenue mix you are asking.

Yes.

Cold room is INR 33 crores. Commercial...

In terms of percentage?

Sales percentage, cold room contributes around 49%, industrial refrigeration 3%, commercial refrigeration around 15%, Transport refrigeration...

How much sir, refrigeration around 15%?

15%, that is old commercial, I'm talking about. Transport refrigeration 5%, ammonia 7%. Project business, 3% to 4%, continuous panel 10% and new commercial freezer vertical around 6% to 7%.

[Operator Instructions] as there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you, everyone, for joining us today and for your valuable time, questions and continued engagement. We appreciate the trust and support of our investors, analysts and stakeholders. We look forward to connecting with you again in the next quarter. Have a great day ahead. Thank you.

Thank you. On behalf of Ice Make Refrigeration Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.