Ice Make Refrigeration Limited Stock Analysis

Strong revenue growth of 38.7% YoY in Q3 (Rs 15,335.91 lakhs vs Rs 11,055.54 lakhs) and 37.8% YoY for nine months (Rs 41,234.94 lakhs vs Rs 29,916.70 lakhs) / Positive inventory reduction indicating improved working capital management, with finished goods/WIP inventory decreasing by Rs 1,047.07 lakhs in Q3 versus Rs 463.36 lakhs YoY / Consolidated nine-month revenue of Rs 41,234.94 lakhs approaching full-year FY2025 revenue of Rs 47,952.19 lakhs, suggesting potential for record annual performance / Material cost efficiency improved with cost of materials as percentage of revenue declining to 78.2% in Q3 from 75.3% YoY, despite absolute increases

Profit collapse of 48.4% YoY in Q3 (Rs 145.06 lakhs vs Rs 280.79 lakhs) and 82.2% decline in nine-month profit (Rs 200.53 lakhs vs Rs 1,124.01 lakhs) despite revenue growth / Finance costs surged 236% YoY to Rs 385.25 lakhs in Q3 and 256% to Rs 887.35 lakhs for nine months, indicating aggressive debt-funded expansion with deteriorating interest coverage / Depreciation doubled to Rs 428.32 lakhs in Q3 (from Rs 214.95 lakhs YoY) and tripled to Rs 1,256.67 lakhs for nine months, suggesting heavy capex without immediate returns / Subsidiary Icebest Private Limited has negative net worth with cumulative losses of Rs 84.30 lakhs in nine months, requiring continuous financial support and flagged as going concern risk by auditors / Operating margin compression evident with profit before tax margin declining from 3.25% in Q3 FY2025 to 1.24% in Q3 FY2026, and from 5.00% to 0.69% for nine months / Other expenses increased 39.3% YoY to Rs 2,563.95 lakhs in Q3, outpacing revenue growth and indicating cost control challenges

Consolidated revenue growth remained strong: Q3 FY26 revenue from operations increased to Rs 15,335.91 lakh from Rs 11,055.54 lakh (+38.7% YoY). / Sequential demand remained positive, with Q3 FY26 revenue at Rs 15,335.91 lakh vs Rs 14,748.89 lakh in Q2 FY26 (+4.0% QoQ). / 9M FY26 consolidated revenue reached Rs 41,234.94 lakh vs Rs 29,916.70 lakh in 9M FY25 (+37.8% YoY), showing sustained scale-up. / No exceptional items were reported in Q3 or 9M, which supports comparability of operating performance. / Auditor issued a clean limited review conclusion (no material misstatement flagged), and management disclosed Labour Code impact as not material at this stage.

Profitability has deteriorated materially: Q3 consolidated PAT fell to Rs 145.06 lakh from Rs 280.79 lakh (-48.3% YoY), and 9M PAT declined to Rs 200.53 lakh from Rs 1,124.01 lakh (-82.2% YoY). / Finance cost surged to Rs 385.25 lakh in Q3 FY26 (vs Rs 114.72 lakh in Q3 FY25, +235.8%) and Rs 887.35 lakh in 9M FY26 (vs Rs 249.32 lakh, +255.9%), pressuring earnings and indicating higher balance-sheet/working-capital strain. / Depreciation nearly doubled in Q3 to Rs 428.32 lakh from Rs 214.95 lakh YoY, adding fixed-cost pressure and reducing operating leverage at current margin levels. / Cost intensity remains high: Q3 material cost was Rs 11,988.68 lakh, about 78.2% of revenue, while total expenses grew to Rs 15,158.37 lakh (+41.4% YoY), outpacing revenue growth. / Subsidiary risk is explicit: one subsidiary is loss-making for two years with negative net worth, and group subsidiaries posted combined loss after tax of Rs 34.16 lakh (Q3) and Rs 84.30 lakh (9M), relying on parent financial support.