Annual Report of the Company for the FY 2025-26

KRN HEAT EXCHANGER AND REFRIGERATION LIMITED Registered & Work Office: Plot No.: F-46,47,48,49, EPIP, RIICO Industrial Area, Neemrana – 301705 (RJ) CIN No.: L29309RJ2017PLC058905 Contact No. 9116629184 Date: September 02, 2026 To, To, BSE Ltd National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Dalal Street, Exchange Plaza, C-I Block G, Bandra Kurla Mumbai- 400001, Maharashtra, India Complex, Bandra (East), Mumbai-400051, Maharashtra, India Script Code: 544263 Script Symbol: KRN ISIN: INE0Q3J01015 Subject: Notice of 9th Annual General Meeting and Annual Report for the Financial Year 2025-26 Dear Sir/Madam, This is to inform that the 9th Annual General Meeting (AGM) of the Company will be held on Friday, the 25th September, 2026 at 03:00 PM (IST), through Video Conferencing (VC)/ Other Audio Visual Means (OAVM), in accordance with the applicable provisions of the Companies Act, 2013 (“the Act”) and the Rules made thereunder and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“the Listing Regulations”) read with relevant Circulars issued by the Ministry of Corporate Affairs (“MCA”) and the Securities and Exchange Board of India (“SEBI”). Pursuant to Regulation 34 read with Schedule V to the Listing Regulations, we submit herewith the Annual Report for the Financial Year ended 31st March, 2026 and the Notice convening the 9th AGM of the Company. In compliance with the relevant Circulars issued by MCA and SEBI, the Annual Report for the Financial Year 2025-26 and the Notice convening the 9th AGM, is being sent to all the Members whose E-mail addresses are registered with the Company/ Depository Participant(s). The said documents are also being uploaded on the website of the Company at www.krnheatexchanger.com. The Company has fixed Friday, the 18th September, 2026 as the ‘cut-off date’ for ascertaining the names of the Members who will be entitled to cast their votes through remote e-Voting facility during Tuesday, the 22nd September, 2026 from 9:00 A.M. (IST) to Thursday, the 24th September, 2026 till 5:00 P.M. (IST) and through e-Voting during the AGM in respect of the business to be transacted at the aforesaid AGM. Thanking You, For KRN Heat Exchanger and Refrigeration Limited Jitendra Kumar Sharma Company Secretary (+91)-9116629184 info@krnheatexchanger.com www.krnheatexchanger.com Expand. Emerge. Evolve. Annual Report 2025-2026 www.krnheatexchanger.com Please find our online version at https:\\krnheatexchanger.com/ Website annual-report www.krnheatexchanger.com or Simply scan the QR code to view our previous years report edisnI s’tahW 01-40 Corporate Overview Theme 02 About the Report 04 Corporate Overview The KRN Story 06 A Word from Our Founder & CMD 08 FY 2025-26 at a Glance 10 Recognised for Excellence 12 A Decade of Building – Milestones 14 Business Excellence Our Value Creation Model 16 Materiality Assessment 18 Stakeholder Engagement 19 Made Here. Trusted Globally 20 Manufacturing Excellence: Powering Global Cooling Solutions 21 Our Product Range 24 Built on Trust: The KRN Way 26 Sustainability Sustainability at KRN 28 Driving Sustainability Through Engineering Excellence 30 Empowering Our Workforce & Driving Social Responsibility 32 Commitment to Environmental Stewardship & Sustainable Growth 34 Governance Leadership & Governance: Driving Vision and Strategic Execution 36 Corporate Governance: Pillar of Trust, Integrity, and Long-Term Value 38 Corporate Information 40 41-134 Statutory Reports Management Discussion and Analysis 41 Board’s Report 57 Report on Corporate Governance 83 Business Responsibility and Sustainability Report 105 134-254 Financial Statements Independent Auditor’s Report - Standalone 135 Standalone Financial Statements 147 Independent Auditor’s Report - Consolidated 194 Consolidated Financial Statements 201 Forward looking statements Some information in this report may contain forward looking statements which include statements regarding Company’s expected financial position and results of operations, business plans and prospects etc. and are generally identified by forward looking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,” “expect,” “may,” “will” or other similar words. Forward looking statements are dependent on assumptions or basis underlying such statements. We have chosen these assumptions or basis in good faith, and we believe that they are reasonable in all material respects. However, we caution that actual results, performances or achievements could differ materially from those expressed or implied in such forward looking statements. We undertake no obligation to update or revise any forward looking statement, whether as a result of new information, future events, or otherwise. The usage of the acronym ‘OEL’ has been made for the purpose of addressing Orient Electric Limited, across the chapters. Expand. Emerge. Evolve. This year, we chose three simple words to tell the story of In the world of cooling, progress is measured not in degrees, KRN: Expand. Emerge. Evolve. They are not just a theme but in distance. How far can an idea travel? How wide can a for this annual report; they are the way we think, act, and vision stretch? How deeply can trust take root? At KRN, this grow. Every milestone in FY 2025–26 fits into this story— year was about answering those questions with action. from new capacity and markets to new technologies and Expand is the arc of our growth. It is the factory floor that governance standards. breathed wider, the test bench that reached further, the map For our shareholders, investors, customers, and partners, we that stretched across new continents and segments. We want this report to be more than numbers. We want it to be a removed the physical constraints that once limited us and clear narrative of how KRN has moved from a strong domestic now design, build, and deliver thermal solutions at a scale that manufacturer to a global thermal engineering platform ready matches global demand. For investors, “Expand” signals that for the next decade of growth. KRN is no longer constrained by space or capacity; we now 2 KRN Heat Exchanger and Refrigeration Limited Corporate 01 Statutory 02 Financial 03 Overview Reports Statements have the backbone to undertake large, multi-year contracts. and that value must be shared. Through our ICE strategy— Innovation, Community, Environment—we are building Emerge is the transformation of our identity. From a reliable solutions that cool efficiently and leave a lighter footprint, supplier of heat exchangers and condensers to a technology while reshaping our business model to serve customers faster and quality leader recognised by the world’s largest brands. and more closely. R&D, certifications, and customer recognition have turned trust into proof. We are no longer competing only on price KRN has moved from “growing well” to “growing structurally.” or delivery; we are competing on engineering depth, quality Expand. Emerge. Evolve. is not just a slogan; it is our promise systems, and brand trust. to build, innovate, and improve—not for a single year, but for the next decade. Evolve is the direction of our future. It is the belief that growth must be responsible, that engineering must be sustainable, Annual Report 2025-26 3 About the Report This report serves as our primary communication channel, offering a detailed overview of KRN Heat Exchanger and Basis and Scope Refrigeration Limited’s strategic vision, operating metrics, of Reporting and long-term value creation roadmap. Aligned with our core principles of expanding, emerging, and evolving, this This report outlines the financial and non financial document highlights our commitment to absolute operational milestones of KRN for the financial year beginning April 1, transparency, high-precision manufacturing, and sustainable 2025, and ending March 31, 2026. The financial data and global growth. performance statements presented herein [Showing first 8,000 characters — download PDF for full document]