Synopsis:
Shree Refrigerators Ltd, advanced after announcing a strategic association with Smardt Chillers, a global leader in oil-free chillers for mission-critical data centers. The collaboration will help expand into commercial cooling, potentially contributing 10–15 percent revenues over three years while strengthening the company’s presence in India’s growing data center market.
A defence and industrial cooling solutions stock edged higher after the company revealed a strategic tie-up with Smardt Chillers Pte Ltd to enter the fast-growing data center cooling segment.
The move is expected to unlock new revenue streams, diversify beyond defence, and strengthen presence in India’s digital infrastructure buildout. The stock was recently listed on the BSE on July 31, 2025, and has since delivered a return of 18.59 percent.
Shree Refrigerators Ltd, with a market capitalization of Rs. 747.88 crore, opened at Rs. 210 and touched an intraday high of Rs. 212.90 against a previous close of Rs. 209.35. The stock gained 1.7 percent at its day high, reflecting positive investor sentiment on the new growth vertical.
What’s the News?
Shree Refrigerators Ltd, has announced a strategic association with Smardt Chillers Pte Ltd, the global leader in oil-free chillers. Through its wholly-owned subsidiary Trezor Technologies Pvt. Ltd., SRL will introduce advanced magnetic bearing chiller technology designed for mission-critical data center cooling.
This expansion marks a shift beyond the company’s traditional defence focus, as SRL anticipates the new vertical to contribute 10–15 percent of revenues over the next three years. Smardt chillers, known for being 20–50 percent more energy efficient than conventional oil-lubricated chillers, offer low maintenance costs and industry-best power utilization efficiency—an essential requirement for data centers.
SRL has already commissioned over 40 magnetic bearing chillers in India, showcasing its technical capabilities. By combining Smardt’s global technology with its engineering expertise, the company is well-positioned to support India’s fast-growing digital infrastructure needs, while aligning with the government’s push for sustainable, energy-efficient solutions.
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Management Commentary
Partnering with a leading global player like Smardt aligns with SRL’s broader growth strategy. Speaking on the development, Mr. RG Shende, Chairman & Managing Director, Shree Refrigerations Limited, said, “Data centers demand the highest levels of efficiency and uptime.
Our association with Smardt allows us to deliver cutting-edge magnetic bearing chiller technology to Indian customers, strengthening our commitment to deliver efficient and reliable cooling solutions for mission-critical infrastructure.
Since we already have deep expertise in serving critical sectors, equipping India’s frontline warships and submarines, we are confident of providing tremendous value to the growing data center segment in India.
This milestone marks a significant step forward in SRL’s growth journey, enabling us to expand beyond our established leadership in defence and industrial cooling, into the rapidly growing data center segment in India.”
Highlighting the market opportunity, Derek Chan, Director Data Centers (Asia Pacific), Smardt Chillers Pte Ltd. “India is one of the fastest-growing data center markets globally and we are delighted to work with Shree Refrigerations Limited to bring our world-class magnetic bearing chiller technology to this market.
With SRL’s strong industry presence and technical expertise, we are confident of delivering unmatched value to customers seeking energy-efficient and future-ready cooling solutions.”
Financial Snapshot
In FY25, sales increased from Rs. 80 crore to Rs. 99 crore, marking a growth of 23.8 percent. Operating profit rose from Rs. 25 crore to Rs. 27 crore, an 8 percent increase. Profit before tax climbed from Rs. 17 crore to Rs. 19 crore, up 11.8 percent.
Net profit advanced from Rs. 12 crore to Rs. 14 crore, registering a 16.7 percent rise. The company maintained a debt-to-equity ratio of 0.37, with return ratios at ROCE of 18.1 percent, ROE of 15.5 percent, and ROA of 8.78 percent.
Segment and Product Performance
During FY25, SRL delivered robust growth driven primarily by its dominance in defence and marine HVAC&R solutions, with chillers and HVAC (Heating, Ventilation, and Air Conditioning) systems for naval platforms contributing the bulk of revenues.
Industrial chillers, fabrication services, control panels, and aftermarket maintenance also contributed to its topline, catering to sectors such as pharmaceuticals, chemicals, and engineering.
The company generated over 70 percent of its revenue from its top three clients, with Mazagon Dock Shipbuilders Ltd alone contributing 35–55 percent of turnover. This concentration indicates dependency on key customers, although a healthy order book of Rs. 248.45 crore, executable over five years as of February 2025, provides medium-term visibility. Timely execution remains critical for sustaining cash flows.
About the Company
Shree Refrigerators Ltd is a leading Indian engineering company specializing in precision air-conditioning, refrigeration, and turnkey HVAC&R solutions across Defence and Industrial sectors.
Headquartered in Karad, Maharashtra, with a manufacturing base and multiple service hubs in Chennai, Goa, Kolkata, Mumbai, Pune, and Vishakhapatnam, SRL combines indigenous R&D, product innovation, and custom engineering to deliver efficient and sustainable cooling solutions. The company has built a reputation as a trusted partner for defence, pharma, and chemical industries, evolving from a small first-generation enterprise into a listed public company.
Written By Manan Gangwar
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