Kross Q2 FY27 results: net profit up 143.4% to ₹19.69 crore, revenue up 79.6%

How did Kross perform in Q2 FY27?

Kross reported standalone revenue of ₹235.09 crore in Q2 FY27, up 79.6% from ₹130.92 crore in Q2 FY26 and 27.5% from ₹184.34 crore in Q1 FY27. EBITDA was ₹30.60 crore, compared with ₹14.75 crore and ₹22.55 crore in the two respective comparison periods. The EBITDA margin was 13.0%, up 1.7 percentage points year on year and 0.8 percentage points sequentially.

Profit before tax rose to ₹26.95 crore from ₹11.83 crore a year earlier and ₹17.83 crore in the previous quarter. Profit after tax was ₹19.69 crore, up 143.4% year on year and 47.9% sequentially, while basic EPS was ₹3.08, compared with ₹1.25 and ₹2.06. The results were on a standalone basis, and the company reported no exceptional item in either quarter.

What changed in Kross' costs and profit?

Total expenses were ₹210.31 crore in Q2 FY27, up ₹90.17 crore from ₹120.14 crore in Q2 FY26 and ₹43.41 crore from ₹166.90 crore in Q1 FY27. Cost of materials was the largest increase at ₹133.92 crore, up ₹64.80 crore year on year, while other expenses rose ₹24.97 crore to ₹61.89 crore. Employee cost increased ₹1.88 crore to ₹10.72 crore, depreciation rose ₹1 crore to ₹3.23 crore and finance costs increased ₹0.85 crore to ₹2.59 crore.

Other income rose to ₹2.17 crore from ₹1.05 crore in Q2 FY26 and ₹0.39 crore in Q1 FY27, while tax expense was ₹7.27 crore, up ₹3.53 crore and ₹2.76 crore respectively. The company reported no exceptional item. Management said strong demand in the M&HCV and trailer segments, continued recovery in tractor and agricultural segments, capacity expansion initiatives, operational efficiency and backward integration supported performance amid input-cost pressures.

How did the first half of FY27 go?

In the first half of FY27, standalone revenue was ₹419.43 crore, up 55.2% from ₹270.27 crore in H1 FY26. Total income was ₹422.0 crore, up 54.3%, while profit before tax rose 74.9% to ₹44.95 crore. Profit after tax increased 76.6% to ₹33.16 crore from ₹18.78 crore, and basic EPS was ₹5.14, up from ₹2.91.

The company’s press release reported H1 EBITDA of ₹533.2 million, up 72.4% from ₹309.2 million, with the margin at 12.7% against 11.4%. Kross did not present the business as separate operating segments for the period. Management said capacity-expansion investments and backward integration were beginning to support operational readiness, while utilisation was expected to improve over the coming two quarters.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹735.5 crore, compared with ₹638.39 crore at 31 March 2026. Total equity was ₹522.95 crore against ₹489.76 crore, while borrowings increased to ₹118.68 crore from ₹53.72 crore and cash rose to ₹6.32 crore from ₹4.44 crore. Inventories were ₹109.66 crore, trade receivables ₹206.29 crore and trade payables ₹65.73 crore.

How has Kross done over the last 8 quarters?

Kross’s revenue reached its highest quarterly level in the series in Q2 FY27 at ₹235.09 crore, above ₹225.45 crore in Q4 FY26 and ₹184.34 crore in Q1 FY27. Its low was ₹130.92 crore in Q2 FY26. Profit after tax also peaked at ₹19.69 crore in Q2 FY27, compared with ₹22.45 crore in Q4 FY26 and its low of ₹8.09 crore in Q2 FY26.

The EBITDA margin bottomed at 11.3% in Q2 FY26 and peaked at 14.9% in Q4 FY26 before easing to 12.2% in Q1 FY27 and recovering to 13.0% in Q2 FY27. Revenue and profit rose year on year in each of the last four quarters. Management said Q2 trailer volumes exceeded the earlier record levels of Q4 FY26.

What else did the company announce?

The board approved the unaudited standalone financial results for the quarter and half-year ended 30 September 2026 and noted the limited review report on 17 October 2026. The statutory auditors issued an unmodified review conclusion. Kross also filed an investor presentation for Q2 and H1 FY27 on the same day.

The same-day presentation said commercial production had commenced at the axle beam extrusion plant, where utilisation was approximately 60–65%. It also reported that the high-pressure moulding line was progressing as planned to double existing casting capacity, forging expansion initiatives were on track and seamless tube mills had been installed. The available filings did not announce a dividend, appointment or fund raise on 17 October 2026.

What did Kross' management say?

Management expected Q3 and Q4 commercial-vehicle and trailer volumes to be stronger than Q2 and said H2 has historically been 20% up on H1. It also expected prices concluded with OEMs and Tier-1 customers to support profitability in Q3 and Q4. The company did not provide quantitative FY27 EBITDA-margin guidance and said it could not give a recovery timeline while OEM consumable and conversion-cost settlements remained pending.

Management said the seamless tube facility would undergo production trials in February–March 2027 and full productionisation by the end of H1 FY28. It expected the facility to lower input costs by 8–10% against current buying prices and lift axle-business margins by 3–4%. The extruded axle beam process, then about 80% of current trailer-axle output, was targeted to reach 100% in the next one to two quarters.

Management identified steel and consumable cost increases with only partial pass-through to OEMs, pending OEM compensation, lumpy receivable days and weaker agri and tractor visibility as risks. It also said exports were 7.5–8% of the component business and growing 45% year on year, while a new European propeller-shaft customer was in validation. The transcript excerpt did not include analyst questions beyond the opening question.

How did Kross shares react?

The filing appeared after market hours from a pre-results close of ₹272.0. The stock initially fell 0.2% after five minutes, 3.4% after 15 minutes and 4.1% after 30 minutes, but it closed 7.7% above the pre-results close on the reaction day. By the next day’s close it was up 1.7% from that close, and by five sessions it was up 7.0%.

The Auto Components & Equipments industry median fell 1.7% on the reaction day, 3.9% by the next close and 4.5% by five sessions. Kross therefore exceeded the industry median by 9.4 percentage points on the reaction day, 5.5 percentage points by the next close and 11.5 percentage points after five sessions. Earlier reaction-day moves were -7.7% on 24 July 2026, 1.7% on 12 May 2026 and -2.1% on 29 January 2026.

How did other Auto Components & Equipments companies do?

Among 46 Auto Components & Equipments companies compared, the median revenue growth was 33.6%. Of the other companies, 45 grew more slowly than Kross and one grew faster. Kross’s 79.6% standalone revenue growth was therefore above the peer median.

The peer data covered 47 companies for profit comparisons, and 37 reported higher profit. These figures compare the other companies that had filed for the quarter with Kross’s standalone revenue and profit performance.