Results filed 17 October 2026 · Market cap ₹1,809 crore · PE 26.1
GrowthGuidance maintainedTranscript read
Revenue
+79.6%
on a year ago
EBITDA
+107.5%
on a year ago
Profit to shareholders
+143.4%
on a year ago
EBITDA margin
13.0%
+0.8 pts on last quarter
Kross Limited delivered strong Q2 FY27 results, with revenue growing 79.6% YoY to ₹235.1 crore and EBITDA rising 107.4% to ₹30.6 crore, propelled by a 100% YoY surge in trailer axle and suspension sales. The company is actively executing a ₹170 crore backward-integration seamless tube facility and scaling its proprietary extruded axle beam production. However, profitability faced headwinds as gross margin contracted 90 bps sequentially to 43.9% on input cost inflation, and management could not reconcile a ₹65 crore disparity between claimed capex spending and balance sheet CWIP.
Kross Limited, Q2 FY27₹ crore, standalone
Q2 FY27
Q1 FY27
vs previous quarter
Q2 FY26
vs a year ago
Revenue
235
184
+27.5%
131
+79.6%
Operating profit (EBIT)
27.37
19.55
+40.0%
12.52
+118.6%
Operating margin
11.6%
10.6%
+104 bps
9.6%
+208 bps
Other income
2.17
0.39
+456.4%
1.05
+106.7%
Exceptional items
0
0
–
0
–
Profit before exceptional items and tax
26.95
17.83
+51.1%
11.83
+127.8%
Profit to shareholders
19.69
13.31
+47.9%
8.09
+143.4%
Earnings per share (₹)
3.08
2.06
+49.5%
1.25
+146.4%
Source: Kross Limited’s filing to NSE, 17 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.
What stood out
Revenue expanded 79.6% YoY to ₹235.1 crore, while PAT grew 143.5% YoY to ₹19.7 crore in Q2 FY27.SourceInvestor Presentation, page 7 & Sudhir Rai, Transcript, page 2
Trailer segment revenue doubled YoY to ~₹115 crore, contributing 49% of total revenue driven by post-monsoon recovery and extruded beam production.SourceKunal Rai, Transcript, page 6-7 & Investor Presentation, page 17
Unreconciled capex: Management claimed ₹120 crore cash outflow on seamless tubes as of Q2, but balance sheet CWIP was only ₹54.9 crore, leaving an unexplained gap.SourceShubham Bhatra and Kunal Rai, Transcript, page 9, 13 & Balance Sheet, Investor Presentation, page 30
Targeting 15% revenue share from agriculture segment.
Next 2 years
Tailwinds
Surge in trailer axle volumes and value: Trailer axle volumes exceeded 10,500 units (+50-55% YoY) in Q2, with trailer segment revenue reaching ~₹115 crore.SourceKunal Rai, Transcript, page 6-7
Operating leverage lifting profitability: EBITDA margin expanded 175 bps YoY to 13.0% and PAT margin expanded 220 bps YoY to 8.4%.SourceInvestor Presentation, page 6, 7
Export traction: Component export share reached ~8% of component sales, with full-year export revenue projected to grow 45% YoY.SourceSudhir Rai, Transcript, page 3; Investor Presentation, page 4, 5
Headwinds
Gross margin compression: Gross margin dropped 90 bps QoQ (and 230 bps YoY) to 43.9% due to rising steel, consumable, and energy costs outstripping price escalation pass-throughs.SourceInvestor Presentation, page 7 & Kunal Rai, Transcript, page 12-13
Working capital stretch: Receivable days stood at ~90 days in H1 FY27 (compared to pre-FY24 levels of <=70 days), with export receivables exceeding 120 days.SourceAnubhav Mukherjee and Kunal Rai, Transcript, page 5
Increasing debt: Total debt increased to ₹117.1 crore (₹77.9 cr long-term + ₹39.2 cr short-term) as term loans rose from ₹35 crore to ₹80 crore to fund capex.SourceKunal Rai, Transcript, page 10-11 & Balance Sheet, Investor Presentation, page 30
New businesses and products
capacity expansion · Sizing and straightening mills installed; furnace and piercing mill mostly ready; equipment in transit.
Backward integration for trailer axles lowering buying costs by 8-10%, adding 3-4% margin to overall axle business, and surplus capacity for Oil & Gas.
Risks
Equipment delivery delays and commodity price volatility.
Timeline
Production trials targeted for February-March 2027 (Q4 FY27); full captive backward integration by end of H1 FY28.
Investment
~₹167 to ₹170 crores (funded via ₹110 crore term loan and ₹60 crore internal accruals).
new product · Planned forward integration facility financed through preferential issue.
Cold Drawn Tubes Manufacturing
Expected benefit
Captive precision sizing and strength enhancement for products like tipping jacks, plus external sales in Jamshedpur where no competitor facility exists.
Risks
Execution risk and dependency on seamless hot rolled tube output.
Revenue up over 60%: check for an acquisition or a weak year-ago quarter
Capex cash flow versus balance sheet mismatch: Management stated ₹120 crore had been spent on the seamless tube plant, yet balance sheet CWIP stood at ₹54.9 crore and net PPE grew by only ₹14.3 crore during H1 FY27; management could not explain the difference.SourceKunal Rai and Shubham Bhatra, Transcript, page 9, 13; Investor Presentation, page 30
Working capital elongation: Trade receivables increased to ₹206.3 crore, with receivable days persisting around 90 days (and >120 days for exports), significantly worse than historic <=70 days.SourceKunal Rai, Transcript, page 5; Investor Presentation, page 30
How the call went
Management was forthcoming on commercial vehicle industry drivers and capex project timelines, but demonstrated gaps in financial accounting specifics, failing to reconcile claimed capex with the balance sheet and deferring detailed product volume breakdowns.
Specific or vague
Provided specific numbers for capex breakdown (₹170 cr total, ₹110 cr debt, ₹60 cr internal accruals) and unit realizations (₹1.4 lakh/jack), but lacked immediate numbers for suspension volumes and customer mix.
Candour
Candid about raw material price pressures and admitted that returning to 14-15% EBITDA margins is difficult, but was caught unprepared on balance sheet capex reconciliation.
The hard questions
Directly addressed working capital stretching and competitive dynamics, but stumbled when asked to reconcile ₹120 crore claimed capex spend against ₹55 crore reported CWIP.
What analysts pressed on
Discrepancy between ₹120 crore capex spent on seamless tubes and only ₹54.9 crore recorded in balance sheet CWIP.
Sequential decline in gross margins despite management claims of receiving price escalations.
Elevated trade receivable days (~90 days in H1 FY27 vs <=70 days prior to FY24).
Sustainability of the sharp volume spike in trailer axles.
Answers that sidestepped
Inability to explain the ~₹65 crore gap between seamless tube capex cash outflow and CWIP, answering: 'No, no, we don't have such a large land parcel which is there. I'll have to check that once.'
Deferring suspension volume figures to an offline email response: 'I'll have a look at the exact volumes, and we'll have it sent over to you.'
Numbers against the story
Management attributed the 79.6% YoY revenue surge entirely to organic drivers (post-monsoon trailer demand, GST rationalization tailwinds, and expanded extruded axle capacity), confirming the screen flag (+60% sales) was driven by low base and volume acceleration rather than an acquisition. However, the narrative conflicts with reported numbers on two fronts: first, management asserted that ₹120 crore had already been spent on the seamless tube project, but reported CWIP is only ₹54.9 crore and PPE rose by just ₹14.3 crore; second, despite commentary highlighting price increases with OEMs to protect margins, gross margin dropped 90 bps QoQ to 43.9%, forcing management to concede that reaching 14-15% EBITDA margins is difficult near-term.
Figures: the company’s results filing with NSE, linked under the table.
Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.