Synopsis: Pune-based defence HVAC manufacturer Shree Refrigerations Limited has supplied Marine Air-Conditioning Plants for INS Dunagiri and INS Agray two of the three warships commissioned by Prime Minister Narendra Modi at GRSE Kolkata marking its second instance in 18 months of supplying systems to two out of three ships in a single commissioning ceremony. The disclosure was accompanied by a major manufacturing expansion that effectively doubles capacity ahead of anticipated demand.
In a major boost for India’s domestic defense manufacturing ecosystem, Pune-based Shree Refrigerations Limited took center stage on Monday following a dual milestone of high-profile defense deliveries and strategic capacity expansion. The company’s specialized, defense-grade Marine Air-Conditioning Plants were successfully deployed on INS Dunagiri and INS Agray, two of the three advanced warships officially commissioned into the Indian Navy by Prime Minister Narendra Modi during a historic ceremony at Garden Reach Shipbuilders & Engineers (GRSE) in Kolkata.
The defense market responded with strong optimism to the company’s Regulation 30 disclosure on June 22, 2026. Shares of Shree Refrigerations Limited rallied 5.25%, closing at ₹380.00 per equity share, up from the previous close of ₹361.05. This surge pushes the company’s total market capitalization to ₹1,360.26 crore. Investors are placing a high premium on the defense supplier, with the stock currently trading at a P/E ratio of 63.23, outstripping the industry peer average P/E of 45.8x.
The simultaneous induction of INS Dunagiri, INS Agray, and INS Sandhayak marks only the second time in the Indian Navy’s history that three warships have been commissioned together in a single ceremony. By supplying the critical climate-control infrastructure for two of these three massive naval platforms, Shree Refrigerations has cemented its status as a trusted partner for the nation’s frontline defenses.
Remarkably, this is the second time in just 18 months that the company has pulled off such a feat. In January 2025, during a similar high-level commissioning ceremony, Prime Minister Modi inducted INS Nilgiri, INS Surat, and INS Vaghsheer into service.
Shree Refrigerations was the engineering force behind the critical HVAC systems for both the Nilgiri and Vaghsheer. Out of six major warships commissioned across these two landmark PM-level ceremonies, this single Pune-based firm has successfully outfitted four of them.
For a company that pivoted into the stringent defense sector less than a decade ago, this repeat performance highlights an extraordinary client retention and quality qualification track record. Marine HVAC systems aboard active warships are far from standard commercial AC units; they are mission-critical, highly specialized systems engineered to survive the harsh rigors of combat and open ocean environments. Successfully passing the Indian Navy’s brutal type-testing and quality clearance cycles twice in a row signals that the company has evolved from a simple component vendor into a deeply entrenched, durable defense supplier.
Doubling Down on Production to Meet a Surge in Orders
The operational milestone comes at a time of calculated growth for the manufacturer. Just 24 hours prior to the high-profile naval commissioning in Kolkata, Shree Refrigerations officially inaugurated a brand new 50,000 sq. ft. manufacturing facility in Karad, Satara. This massive new plant effectively doubles the company’s existing production capacity. While the timing may seem coincidental, market analysts note it reflects a highly strategic move to absorb a rapidly scaling order pipeline from the broader Indian defense ecosystem.
The floor space expansion arrives just in time to support a heavy workflow. The company currently boasts a robust, verified naval order backlog sitting at ₹195.37 crore. Supplementing this backlog are fresh, high-value contract wins, including a ₹9.75 crore order from Kongsberg Maritime India for specialized naval cooling systems, alongside a ₹2.55 crore order secured from industry heavyweight Mazagon Dock Shipbuilders Limited.
Explosive Growth Underpins the SME Success Story
Having officially listed on the BSE SME platform in August 2025, the company’s operational execution is translating directly into spectacular financial performance. Shree Refrigerations reported a blockbuster Fiscal Year 2026, where total revenues skyrocketed by over 50% year-on-year. The momentum peaked aggressively in the second half of the fiscal year, with H2 FY26 posting an astonishing 100% growth on both a year-on-year and half-on-half basis, driven by superior project execution and sharp operating leverage.
The bottom-line numbers further justify the market’s aggressive valuation of the company. Shree Refrigerations closed out FY26 with a Profit After Tax (PAT) of ₹21.53 crore, representing a staggering 70.7% year-on-year growth compared to the previous fiscal period. Leveraging 35 years of legacy experience in industrial refrigeration, the company’s successful pivot to defense technology is shaping up to be one of the most profitable micro-cap transformations on the modern Indian bourses.
Company Overview
The company recently expanded capacity with a new facility in Karad, effectively doubling output, and currently holds a strong ₹195.37 crore order backlog. Backed by contracts from major defence players like Mazagon Dock Shipbuilders Limited, it is positioned as a fast-growing player in India’s defence manufacturing ecosystem.
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