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    Krishna Defence

    KRISHNADEF
    Capital Goods·22 May 2026
    Management Summary

    Krishna Defence reported strong Q4 and FY26 results, driven by successful execution in the defence manufacturing segment and improved operating leverage. The company achieved significant revenue and profit growth, bolstered by new certifications and capacity expansion. Strategic investments in JVs and R&D projects are set to drive future growth, despite some order execution delays in FY26 and ongoing raw material price volatility.

    Highlights

    6

    • Revenue for Q4 FY26 was INR 64.8 crores, showing an increase of 42.2% year-over-year.

    • Net profit for Q4 FY26 was INR 12.8 crores, showing a year-over-year increase of 72.9%.

    • FY26 Net Profit was INR 41.3 crores, showing an increase of 85.6% year-over-year.

    • Obtained AS9100D certification for aerospace components and IRS certification for commercial shipbuilding.

    • Doubled bulb bar capacity from 2,000-2,500 tons to 4,000-4,500 tons by April 2025.

    • Created a liquid reserve of INR 65 crores, reflecting enhanced liquidity.

    Concerns

    3

    • Experienced a 4-5 month 'pause' in order execution and inflow during FY26 due to 'Operation Sindoor' and government focus on immediate deployment, pushing orders to later quarters.

    • Acknowledged raw material price volatility (fuel, steel) as a global issue, leading to some uptake in costs, though management stated the impact on margins was 'not substantial.'

    • The Jalkapi project (AUV) development may face a 3-month delay, which is typical for developmental projects.

    Key financials

    Metrics

    10

    Periods

    2

    Q4 FY26

    5
    • Revenue
      ₹64.8 Cr
      YoY+42.2%
    • EBITDA
      ₹16.1 Cr
      YoY+55.1%
    • EBITDA Margin
      24.8%
    • Net Profit
      ₹12.8 Cr
      YoY+72.9%
    • Net Profit Margin
      19.7%

    FY26

    5
    • Revenue
      ₹244.8 Cr
      YoY+29.1%
    • EBITDA
      ₹52 Cr
      YoY+69.9%
    • EBITDA Margin
      21.3%
    • Net Profit
      ₹41.3 Cr
      YoY+85.6%
    • Net Profit Margin
      16.9%

    Order Book

    high confidence

    Total Value

    ₹ 103.4 crores

    as of 2026-03-31

    quantified

    Execution

    Orders are now expected to be delivered in six months' time, compared to 12 months previously.

    Composition

    Mix4 products
    • Bulb bars60.0%
    • Welding wires15.0%
    • Armoured steel profile (HVF)15.0%
    • Others10.0%

    Share of order book by product

    Pipeline

    qualified rfp

    Tender pipeline for future orders.

    Cancellations / Deferrals

    • deferred:Orders were pushed back for 4-5 months due to 'Operation Sindoor' and government focus on immediate deployment.

    "Management expects the tender pipeline to fructify in the first half of the next fiscal year, contributing to the targeted growth."

    Source:
    Prepared remarks

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    Conceptia

    joint venture · integrated

    M&A

    Waveoptix Defence Solution

    joint venture · integrated

    M&A

    VABO Composite

    joint venture · Other · Consideration ₹4 (cash)

    M&A

    Taharabadkar Solutions

    acquisition · Other

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    Revenue Growth
    30% plus
    		High
    Revenue
    FY27 Revenue
    INR 300 crores
    		Medium
    Profitability
    Margin Improvement
    uptake
    		Medium
    Profitability
    Margin Trajectory
    similar to FY26
    		High
    Capacity
    Revenue Potential from Current Infrastructure
    INR 400-500 crores
    		High
    JV Growth
    Conceptia Growth
    20%
    		High
    JV Growth
    Waveoptix Growth
    30%
    		High

    Fructification of tender pipeline

    H1 FY27
    CurrentINR 221 crores pipeline as of March 31, 2026.
    TargetSignificant portion converted to firm orders.

    Why it matters

    Essential for achieving the 30%+ revenue growth target for FY27.

    And we expect that most of the tender pipeline that we have indicated should fructify in the first half.

    How to verify

    order_book.inflow_this_quarter

    Risks & concerns

    3
    RiskSeverity

    Order execution delays due to government priorities

    A 4-5 month pause in order execution and inflow occurred in FY26 due to 'Operation Sindoor' and government focus on immediate deployment. — Management acknowledged

    medium

    Raw material price volatility

    Global issue leading to uptake in fuel and steel costs, but management stated the impact on margins was 'not substantial'. — Analyst acknowledged

    low

    Project development delays

    The Jalkapi project (AUV) development may experience a 3-month delay, which is typical for developmental projects. — Management acknowledged

    low

    Q&A highlights

    7

    “So sir, there are still 12 months left. You also have something coming in, right? It's not going to be a dry patch, that we will not get any orders in 12 months. That's why I said this is the position on the 31 of March, 2026. And these tender pipelines, these are not tender that we're expecting. These are for which bids have already been accepted.”

    Clarifies how the company expects to achieve its 30%+ growth target for FY27 by converting the INR 220 crore pipeline and securing new orders.

    asked by Karan Singh

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 & FY26 Financial Performance Overview

    Krishna Defence reported robust financial performance for Q4 and the full fiscal year 2026. For Q4 FY26, revenue surged by 42.2% year-over-year to INR 64.8 crores, with EBITDA increasing by 55.1% to INR 16.1 crores. Net profit for the quarter saw a significant rise of 72.9% to INR 12.8 crores, reflecting improved operating leverage with EBITDA margin at 24.8% (+206 bps) and Net Profit margin at 19.7% (+350 bps). For the full FY26, revenue grew 29.1% to INR 244.8 crores, EBITDA by 69.9% to INR 52 crores, and Net Profit by 85.6% to INR 41.3 crores, with margins expanding by over 500 bps for both EBITDA (21.3%) and Net Profit (16.9%).

    02

    Defence Product Portfolio & Indigenization Efforts

    The company continues to expand its defence product offerings, securing a design win for an aircraft arresting gear and adding new armoured steel profiles, increasing the range from 17 to 26. A key focus remains on indigenizing previously imported products, such as bulb bars, special steel alloy welding wires, and ballast bricks, which were historically sourced from Russia. The company also highlighted its role in developing India's largest AUV in partnership with the Navy and DRDO, and a strategic steel under the PLI scheme with the Ministry of Steel.

    03

    Strategic Investments & Joint Ventures

    Krishna Defence has strategically invested in and formed joint ventures to broaden its capabilities. This includes a 20% stake in Conceptia, a ship and submarine design company, and a 40% stake in Waveoptix Defence Solution, specializing in radio frequency to optical fiber conversion modules. The company also formed a 51% JV with VABO Composite for manufacturing lightweight composite fire-resistant doors and hatches for naval platforms, with an initial investment of INR 4-5 crores. Additionally, an investment in Taharabadkar Solutions aims to develop smart ammunition systems, supported by a INR 25 crore grant from the Indian Navy, with revenue expected in 2-3 years.

    04

    Order Book & Growth Outlook

    As of March 31, 2026, the company reported an unexecuted order book of INR 103.4 crores and a tender pipeline of INR 221 crores. Management aims for a 30%+ CAGR revenue growth for the next few years, expecting the pipeline to fructify in H1 FY27. While FY26 saw a 4-5 month 'pause' in order execution due to 'Operation Sindoor' and government focus on immediate deployment, management is confident in achieving its growth targets through new projects and existing product demand.

    05

    Capacity Expansion & Certifications

    To support its growth trajectory, Krishna Defence doubled its bulb bar manufacturing capacity from 2,000-2,500 tons to 4,000-4,500 tons by April 2025 and acquired a 50,000 sq ft shed for further capacity expansion. The company also achieved critical certifications, including AS9100D for aerospace components and IRS certification for commercial shipbuilding, in addition to existing DNV and ABS approvals. These certifications position the company for entry into new market segments and enhance its competitive edge.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.