Ice Make Refrigeration’s Q1 revenue jumps 60%, inks strategic investment from Japan’s Galilei

Ice Make Refrigeration Ltd., a provider of industrial and commercial refrigeration and cold-chain solutions, says its consolidated revenue from operations rose 60.4% year-on-year to Rs 178.88 crore in the first quarter ended June 30, 2026 and the company has proposed a Rs 180 crore strategic investment by Japan-based Galilei Holdings Company Limited through a preferential issue.

The company, however, faced near-term profitability pressure as higher commodity and raw-material costs, foreign-exchange volatility, and investments in capacity and organisational capabilities weighed on margins. EBITDA stood at Rs 3.09 crore, compared with Rs 4.53 crore in the year-ago quarter, while the EBITDA margin declined to 1.7% from 4.1%.

Profit before tax stood at a loss of Rs 2.23 crore against a loss of Rs 1.84 crore in Q1 FY26, while profit after tax was a loss of Rs 1.65 crore compared with a loss of Rs 1.47 crore in the corresponding period.


In a statement, the management said its immediate focus is to improve capacity utilisation, operating efficiency, product mix and cost discipline, with operating leverage expected to improve as recently created capacity and capabilities are utilised more effectively.

The company had reported record annual revenue of Rs 668.20 crore in FY26. Management said demand remained healthy across its refrigeration and cold-chain businesses, with newer categories such as chest freezers and continuous panels gaining traction.

Japan partnership seen as strategic inflection point

A key development highlighted during the earnings interaction was the proposed Rs 180 crore strategic investment by Japan-based Galilei Holdings Company Limited through a preferential issue. Ice Make also proposes to raise an additional Rs 10 crore from other investors.

The proposed transaction is part of a broader strategic partnership under which Galilei would hold 60% and Ice Make 40% in a joint venture initially focused on commercial refrigeration products, including commercial upright and table refrigerators.

Management said the partnership would combine Galilei’s refrigeration technology, product-development and manufacturing expertise with Ice Make’s Indian market presence, manufacturing platform, customer relationships and execution capabilities.

The proposed capital is expected to be deployed across capacity expansion and modernisation, development of a corporate office and centre of excellence, development and testing laboratories, repayment of selected borrowings and potential inorganic growth opportunities.

The transaction remains subject to applicable regulatory and other closing conditions.

Focus shifts from topline growth to profitable growth

While Q1 revenue growth was strong, management acknowledged that profitability remains the key issue in the near term. The company indicated that it has implemented price increases, but the pace of raw-material inflation and currency movements has created a lag in passing through the full impact of higher input costs.

Management expects raw-material price volatility to continue through Q2 and potentially into Q3, given continuing global uncertainties.

For FY27, the company is now targeting an EBITDA margin of around 6%-6.5%, with management expecting margin improvement to become more visible in the second half of the year as pricing actions take effect and utilisation improves.

The company said it remains focused on converting strong revenue momentum into healthier profitability and operating cash generation rather than pursuing growth at the expense of returns.

New businesses emerge as growth drivers

Ice Make is broadening its refrigeration platform across commercial refrigeration, cold chain, food processing, hospitality, pharmaceuticals, retail and industrial applications.

During the quarter, cold rooms accounted for around 43% of revenue, followed by commercial freezers at approximately 19% and continuous panels at around 17%. Transport refrigeration and traditional commercial refrigeration each contributed about 7%, while ammonia refrigeration and projects together accounted for roughly 5%.

Management said continuous panels and chest freezers have recorded significant growth and are becoming important additions to the company’s portfolio.

Cold rooms and continuous panels are relatively season-agnostic businesses, while demand for chest freezers tends to be more seasonal. Management expects chest-freezer demand to strengthen around the festive season.

Order book provides visibility

The company said its order book remains healthy at more than Rs 220 crore, providing visibility for the current financial year.

Management indicated that the order pipeline spans industrial refrigeration, transport refrigeration, ammonia refrigeration, projects, commercial freezers, and continuous panels. The company said it remains confident of achieving its stated FY27 growth objectives, while also seeking to maximise opportunities as market conditions evolve.

The company’s existing installed capacity, after the first phase of capital expenditure, has peak revenue potential of around Rs 950 crore, according to management.

Building a larger refrigeration platform

Ice Make said its strategy for the next phase is centred on four priorities: expanding and modernising manufacturing capacity, broadening the product portfolio, strengthening technology and product development through a centre of excellence and testing laboratories, and deepening its market reach across India’s refrigeration and cold-chain ecosystem.

Management believes the partnership with Galilei can progressively improve the company’s product capabilities and competitive positioning, while opening opportunities in commercial refrigeration.

The company’s stated objective is to build businesses capable of generating sustainable revenue, stronger margins and attractive returns on capital.

With Q1 demonstrating strong demand but weak near-term profitability, the central theme for Ice Make in FY27 will be whether higher utilisation, pricing actions, product mix and the proposed strategic investment can translate its robust revenue momentum into sustainable earnings growth.