The transformation of Shree Refrigerations Ltd (SRL) over the past three decades is a story of technological evolution, strategic vision and disciplined execution. What began as a small refrigeration and HVAC enterprise in Karad, Maharashtra, has today emerged as one of India’s leading providers of specialised cooling solutions for the defence sector – particularly the Indian Navy.
As a defence-focused manufacturer of refrigeration and HVAC systems, SRL has supplied mission-critical marine air-conditioning plants for INS Dunagiri and INS Agray, two of the three warships recently commissioned into the Indian Navy. Having established itself as a trusted supplier for some of the country’s most critical naval programmes, the company is now preparing for its next phase of growth through capacity expansion and diversification into the rapidly growing data-centre cooling market.
“Over the last decade, we have transformed ourselves from being a conventional refrigeration company into a provider of highly specialised cooling solutions for mission-critical applications,” says R.G. Shende, chairman & MD, SRL. “Today, our systems operate on some of India’s most advanced naval platforms, reflecting the trust placed in our engineering and execution capabilities”.
Founded in 1990, SRL initially focused on refrigeration products and industrial cooling systems. In its formative years, the company also received support under a Maharashtra government-backed venture funding initiative (Maharashtra Defence & Aerospace Venture Fund), which helped it establish manufacturing capabilities and scale its operations. The early institutional backing played an important role in strengthening the company’s foundation and supporting its evolution from a regional refrigeration business into a specialised engineering company serving critical defence and industrial applications.
Over the years, the company, aiming to grow at a CAGR of 40 per cent in the next 2-3 years, steadily enhanced its engineering capabilities, developed in-house testing infrastructure and invested in product innovation. A major turning point came in 2012, when it entered the marine HVAC segment, identifying opportunities emerging from India’s naval modernisation programme and the government’s increasing focus on indigenous defence manufacturing.
A unique position
The move proved transformational. Today, SRL occupies a unique position within India’s defence manufacturing ecosystem. It is the only Indian company registered across all three critical naval segments – air-conditioning & refrigeration plants, turnkey HVAC & refrigeration solutions and electrical control panels. These approvals create significant entry barriers and underscore the company’s deep technical expertise in specialised naval cooling systems.
The company’s portfolio includes marine HVAC systems, refrigeration plants, air-conditioning plants, radar cooling systems, heat exchangers, electrical control panels and turnkey HVAC solutions for naval platforms. These systems are engineered to function in a highly demanding maritime environment, where reliability and performance are paramount.
Over the years, SRL has participated in several prestigious defence programmes, including Project 17A Nilgiri-class frigates, Scorpene submarines, INS Dhruv, INS Jalashwa, Brahmaputra-class vessels and Coast Guard patrol vessels. Such projects have helped the company develop specialised know-how while strengthening its reputation as a reliable partner to the Indian Navy.
“Our journey has been driven by a clear belief that Indian companies can design, make and deliver world-class solutions for the most demanding defence applications,” says Shende. “Every milestone – from our first marine HVAC project to indigenous cooling systems for submarines and warships – has strengthened that conviction”.
A key factor behind the company’s growth has been its emphasis on indigenous engineering and manufacturing. By investing in design capabilities, testing infrastructure and production facilities, SRL has built the ability to develop customised solutions that meet stringent defence requirements, while supporting the government’s ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives.
Another important milestone came in 2025, when the company successfully listed on the BSE SME platform. The IPO strengthened its balance sheet, enhanced corporate visibility and provided capital for expansion. It also marked SRL’s transition from a niche engineering enterprise into a publicly listed company, with ambitions to scale its operations significantly and pursue opportunities beyond its traditional markets.
Over the last decade, we have transformed ourselves from being a conventional refrigeration company into a provider of highly specialised cooling solutions for mission-critical application
“The IPO was much more than a fund-raising exercise,” affirms Shende. “It provided us with the financial strength, governance framework and visibility required to pursue our long-term growth ambitions. It has helped us invest ahead of the curve in infrastructure, people and technology”.
To support growth, the company has inaugurated a new manufacturing facility in Karad in the presence of Vice-Admiral B. Sivakumar, AVSM, VSM, Chief of Materiel, Indian Navy. Spread across more than six acres, the facility adds about 50,000 sq ft of manufacturing space and incorporates advanced technologies such as CNC laser-cutting systems, robotic welding stations and automated fabrication infrastructure.
“The new facility marks a significant milestone in the company’s journey towards strengthening indigenous manufacturing capabilities in line with the government of India’s ‘Make in India’ initiative,” contended Shende during the inauguration. “In the initial phase, our focus will be on improving efficiency and strengthening the supply chain. This will improve manufacturing time and reduce logistical delays”.
Vertical integration
The facility is expected to strengthen vertical integration by bringing several manufacturing processes in-house. This will help improve execution speed, enhance quality control, reduce dependence on third-party vendors and support the company’s next phase of expansion.
“This facility is not merely an expansion of manufacturing space,” Shende adds. “It is a strategic investment in vertical integration. By bringing critical processes in-house, we will be able to improve execution speed, enhance quality control and create greater value for our customers, while supporting future growth”.
The benefits of these investments are increasingly visible in the company’s financial performance. The year 2025-26 was a landmark for SRL, with revenue from operations growing by more than 55 per cent year on year to Rs154 crore, while its EBITDA rose to Rs32.8 crore. Net profit also increased nearly 65 per cent to Rs21.4 crore, reflecting stronger execution, improving operating leverage and healthy demand from defence programmes.
The second half of 2025-26 was particularly strong too, with revenues more than doubling over the corresponding period of the previous year, as enhanced execution capabilities began contributing meaningfully to project deliveries and order execution. “During the year, our strong revenue growth, improved profitability and healthy order inflows demonstrated that the investments we made in capabilities, people and infrastructure were beginning to deliver tangible results. More importantly, they strengthened the foundation for sustainable long-term growth,” says Shende.
The company has also improved operational efficiency, reducing its working-capital cycle significantly, while strengthening cash-flow generation. These improvements have enhanced its ability to execute larger projects and support future expansion plans.
A major indicator of the company’s growth visibility is its robust order book. As of 31 March 2026, SRL had an unexecuted order book of about Rs271 crore – equivalent to nearly 1.8 times the revenue for 2025-26. The order pipeline spans HVAC systems, refrigeration plants, air-conditioning plants, turnkey projects, spares and lifecycle services, providing healthy visibility over the next 18-24 months.
Notably, more than 95 per cent of the current order book is linked to naval and defence programmes. This highlights the company’s strong positioning within India’s defence ecosystem and the confidence it enjoys among naval customers. The order book also demonstrates the depth of relationships the company has built with defence shipyards and naval authorities over the years.
While defence remains our core strength, we are actively building additional growth engines
However, while defence remains the backbone of the business, SRL’s management is consciously pursuing diversification beyond naval applications. The objective is to build additional growth engines that can complement its existing strengths and gradually create a more balanced business portfolio over the long term.
One of the most promising opportunities is data-centre cooling. India’s rapid growth in cloud computing, artificial intelligence, digital services and hyperscale data-centre investments is creating significant demand for advanced cooling technologies. Given its expertise in mission-critical cooling applications, SRL believes it is well-positioned to participate in this opportunity.
To strengthen its capabilities in this emerging segment, the company has entered into a strategic partnership with Smardt Chillers, a Canadian global leader in oil-free magnetic-bearing chiller technology. The collaboration is expected to bring advanced, energy-efficient cooling solutions to the Indian market, while leveraging SRL’s manufacturing and execution capabilities.
“While defence remains our core strength, we are actively building additional growth engines,” informs Shende. “Data centres represent a significant long-term opportunity, where our expertise in high-reliability, mission-critical cooling solutions can create meaningful value”.