Ice Make Refrigeration Ltd – Q1 FY26 Earnings Call Transcript and Q&A Session Key Highlights

Management Commentary – Mr. Chandrakant P. Patel , CMD, ICE Make
• Despite short-term margin pressure, long-term opportunity remains strong due to rising demand in cold chain and refrigeration infrastructure in India.

• Cold chain inefficiencies are a national challenge; Ice Make aims to be a key enabler in solving this.

• New eco-friendly, ammonia-based and IOT-enabled solutions are being introduced.

• India’s cold chain market is poised for double-digit growth, and Ice Make is strategically positioned to capitalize on it.

• Short-term headwinds from inventory adjustment and CAPEX, but strong order book ensures long-term visibility.

Key Financial Highlights (Consolidated) by Mr. Ankit Patel, CFO, ICE Make

• Revenue from Operations: ₹111.50 crore
> +30.9% YoY (₹85.23 crore in Q1 FY25)
• EBITDA: ₹4.53 crore (vs ₹6.13 crore in Q1 FY25)
▸ EBITDA Margin: 4.06% (vs 7.2%)

• PAT: (Loss) ₹1.47 crore (vs profit of ₹3.64 crore in Q1 FY25)
Margins impacted due to input cost inflation, depreciation, finance cost, and new verticals’ operating expenses.

Business Segment Highlights – Mr. Nikhil Bhatt , VP Strategy, ICE Make

• Cold Room: ₹57.43 crore (51% of revenue)
• Commercial Refrigeration: ₹19.38 crore (17%)
• Transport Refrigeration: ₹6.74 crore
• Ammonia-based Projects: ₹6.66 crore (6%)
• Industrial Refrigeration: ₹3.4 crore (3%)
• Continuous Panels: ₹9.61 crore (9%)
• Commercial Freezers: ₹8.61 crore (8%)

Export Revenue: ₹4.51 crore (3% of revenue)
Current Order Book: ₹173.12 crore

Strategic & Operational Highlights
• Strong growth across all zones:
o West: 53% revenue
o North: 15% YoY growth (led by QSR and e-commerce)
o South: 15% growth
o East: 12% growth

• Dealer network: 60+ appointed; major concentration in West (40 dealers)

• New verticals (chest freezers, panels) expected to contribute ₹150 crore revenue in FY26 with ~9% EBITDA margin.

• Quick commerce contributed ~20% of Q1 revenue.

• Visi cooler production capacity at ~700/month to be expanded to 1000/month.

CAPEX & Growth Plans
• Maintenance CAPEX: ₹7–8 crore in FY26
• ₹150 crore Phase-2 CAPEX in discussion (tech tie-ups, JV being explored)
• Targeting ₹650 crore revenue in FY26, with 10–10.5% long-term EBITDA margins

• Long-term goal of ₹1,000 crore topline by FY27–28
o New business (panels, freezers): ₹360 crore
o Existing verticals: ₹500–550 crore
o Export expansion in MENA, Africa underway

Q&A Takeaways
• White labeling: ~5–6% of FY25 revenue, may rise to ~8% in FY26
• Break-even levels:
o Panels: ₹80–82 crore revenue
o Freezers: ₹55 crore revenue

• Working capital:
o Inventory days to rise to ~80 (due to seasonality and stocking)
o Debtor days to rise slightly in new business (dealer-based model)

• Competitive landscape:
o High demand and sector consolidation
o Government support, BIS compliance pushing unorganized players
to formalize

• Visi cooler:
o 100% of current installed capacity utilized
o Target to scale exports and enter bulk contracts

5-Year Performance Track Record (FY20–FY25) By Aryan Rana, AARYANA MATASCO

• Revenue CAGR: ~30% → from ₹138 crore (FY20) to ₹480 crore (FY25)

• Net Profit CAGR: ~43.5% → from ₹3.61 crore to ₹22.90 crore

• Operating Profit: Increased from ₹4 crore to ₹43 crore; maintained EBITDA margins in the 8%–11% range

• Market Capitalization: Surged nearly 1,000% over 5 years, reflecting strong investor confidence

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