Koolking Industries India IPO

Strengths · 8

• 01Revenue from operations grew from Rs 239.94 crore in FY2024 to Rs 483.14 crore in FY2025 and Rs 526.75 crore in FY2026.
• 02Reported EBITDA margin widened from 6.52% in FY2024 to 9.50% in FY2025 and 10.89% in FY2026, and gross profit margin was 28.91% in FY2026.
• 03Profit after tax rose from Rs 7.67 crore in FY2024 to Rs 33.21 crore in FY2026.
• 04Reported return on equity was 42.86% and reported return on capital employed was 28.39% in FY2026.
• 05The company says it supplies 8 of the top 10 HVAC manufacturers in India, and repeat customers gave 96.91% of revenue from operations in FY2026.
• 06Installed capacity rose from 279.86 million units in FY2024 to 419.26 million units in FY2026 across five manufacturing facilities.
• 07The portfolio covered 1,697 SKUs across four verticals as on 31 July 2026, spread over indoor unit, outdoor unit, other HVAC and refrigeration components.
• 08Fixed asset turnover was 8.25 times in FY2026, against 6.43 times in FY2024.

Risks · 10

• 01Customer concentration is high. The top 10 customers gave 89.71% of revenue from operations in FY2026, 89.36% in FY2025 and 88.38% in FY2024, and the company says it has no long-term agreements with any of its customers.
• 02Cash flow from operating activities was negative at Rs 43.01 crore in FY2026 and negative Rs 6.65 crore in FY2025, even though profit after tax was Rs 33.21 crore in FY2026, so working capital is absorbing the profit.
• 03Total borrowings rose from Rs 37.28 crore in FY2024 to Rs 65.88 crore in FY2025 and Rs 153.21 crore in FY2026, against net worth of Rs 94.12 crore in FY2026.
• 04Supplier concentration is also high. The top 10 suppliers gave 79.33% of total purchases in FY2026, against 70.70% in FY2024, and the company says it has no long-term contracts with certain suppliers.
• 05Raw material and components sourced from South Korea, China and Thailand were 53.07% of total raw material sourced in FY2026, which leaves the company open to import disruption and to foreign currency movement.
• 06Reported return on capital employed fell from 43.40% in FY2025 to 28.39% in FY2026, and reported return on equity fell from 57.55% to 42.86% over the same two years.
• 07Tax, statutory and regulatory proceedings against the company carried an aggregate Rs 14.56 crore as disclosed, of which indirect tax proceedings were Rs 14.33 crore.
• 08The statutory auditors included emphasis of matter and CARO matters in the audit report for FY2026 and in the special purpose audit reports for FY2025 and FY2024.
• 09The whole offer for sale comes from the three promoters and one promoter group member, whose weighted average cost of acquisition ranges from Rs 1.81 to Rs 3.36 per share, so the sale proceeds go to them and not to the company.
• 10The amount set aside for general corporate purposes is left blank in the draft document and can be up to 25% of the gross proceeds, so part of the fresh money has no stated use yet.

Koolking Industries India Limited, earlier known as Koolking Industries India Private Limited and before that Koolking Udhyog Private Limited, manufactures and supplies brass and copper components used in air conditioners and refrigeration equipment. Its products go into window air conditioners and split air conditioners, where the indoor unit and the outdoor unit each need a different set of tubes and fittings. The company works across four verticals: indoor unit components such as U-bends, evaporator inlet and outlet tubes and sockets; outdoor unit components such as suction tubes, condenser inlet and outlet tubes, C-bends and discharge tubes; other HVAC components such as brass flare nuts and dead nuts; and refrigeration components such as refrigeration lines. As on 31 July 2026 it offered 1,697 SKUs across these four verticals.

The company does not sell to households. It supplies original design manufacturers that build air conditioners for brand owners, so its customers are factories rather than dealers. Its named customers in the draft document include Daikin Airconditioning India Private Limited, Amber Enterprises India Limited, KRN Heat Exchanger and Refrigeration Limited, EPack Durable Limited and Panasonic Life Solutions India Private Limited. The company says its relationship with its top six customers runs 5 to 10 years as on 31 July 2026, and that it supplies 8 of the top 10 HVAC manufacturers in India. Repeat customers gave 96.91% of revenue from operations in FY2026, 99.47% in FY2025 and 97.66% in FY2024.

In FY2026 indoor unit components brought Rs 220.82 crore, or 41.92% of revenue from operations, and outdoor unit components brought Rs 211.17 crore, or 40.09%. Other components added Rs 27.68 crore and other operating revenue, which includes scrap sales, added Rs 67.08 crore. The company reports its business as a single segment, the manufacture of air conditioner components, fittings and parts.

The registered and corporate office is at Village Ratolan, Dhuri Road, Malerkotla, Punjab. As on the date of the draft document the company ran five manufacturing facilities in Punjab, Uttar Pradesh, Rajasthan and Andhra Pradesh, placed close to its customers' plants. Installed capacity across all facilities rose from 279.86 million units at the end of FY2024 to 331.72 million units in FY2025 and 419.26 million units in FY2026. The company has over 17 years of operations and buys a large part of its raw material abroad: imported raw material purchases were Rs 251.86 crore in FY2026, which was 53.07% of total raw material purchases.

The promoters are Sajiv Gopal, Malti Sood and Varun Gopal. Sajiv Gopal is Chairperson and Whole-time Director, Malti Sood is a Whole-time Director and Varun Gopal is Managing Director and Chief Executive Officer. All three have been with the company since incorporation and each has over 18 years in the HVAC components industry.

The industry

The draft document cites a CARE report on the Indian components industry for air conditioners and refrigerators, which supplies compressors, heat exchangers, condensers, evaporators, motors, fans, copper tubing, printed circuit boards and electronic control units. The report expects this industry to grow from Rs 45,500.80 crore in FY2026 to Rs 63,104.20 crore by FY2030. The growth drivers it lists are rising domestic demand for air conditioners and refrigerators, better household penetration, replacement demand, the shift to inverter based and energy efficient appliances which raises the component content per unit, government policies that push localisation and import substitution, and appliance makers preferring component suppliers located near their own plants. Koolking supplies brass and copper tubing and fittings inside this chain.

Customer concentration: Top 10 customers gave 89.71% of revenue from operations in FY2026, 89.36% in FY2025 and 88.38% in FY2024, amounting to Rs 472.49 crore in FY2026.