Kross Ltd reported a strong Q3 FY26, with revenue growing 18.3% YoY to INR177.5 crores and EBITDA margin at 13.2%. The company saw a resurgence in the M&HCV segment and healthy growth in the tractor segment, alongside progress in capacity expansion and new product launches like the Tipping Jack. While other expenses rose due to project investments, management anticipates margin improvement as these projects begin contributing to the top line.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue | ₹177.5 Cr | +18.3% YoY |
| EBITDA | ₹23.5 Cr | +18.9% YoY |
| EBITDA Margin | 13.2% | — |
| PAT | ₹14 Cr | +3.0% YoY |
| PAT Margin | 7.9% | — |
| 9M Revenue | ₹447.8 Cr | +2.8% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Revenue(crores) | 225.4 | |
| EBITDA(crores) | 33.6 | |
| EBITDA Margin | 14.9% | |
| PAT(crores) | 22.4 | |
| PAT Margin | 10% |
| Category | Headline | |
|---|---|---|
Capex | ₹80 crores IPO proceeds and out of IPO proceeds for seamless tube expansion |
| Category | Target | Priority |
|---|---|---|
| Exports | Export contribution to total revenue→5% | High |
| Exports | Export contribution to total revenue→7-7.5% | High |
| Exports | Export contribution to total revenue→Double-digits | High |
| Exports | Leax export revenue→INR56-60 crores | High |
| M&HCV Segment | Revenues→Significantly higher than H1 FY '26 | Medium |
| Tractor Segment | Contribution to total revenue→15% | High |
| Tractor Segment | Contribution to total revenue→15-16% | High |
| Tipping Jack | Production volume→300 units | High |
| Tipping Jack | Peak capacity utilization→800 assemblies/month | High |
| Tipping Jack | Revenue→INR45-50 crores | High |
| Extruded Axle Line | Market share→35% | High |
| Extruded Axle Line | Capacity utilization→7,500 extruded beams | High |
| Profitability | EBITDA Margin→15% | Medium |
| # | Metric | |
|---|---|---|
| 01 | Tipping Jack Validation & Production Ramp-up | |
| 02 | Axle Beam Extrusion Plant Commissioning | |
| 03 | 1600-ton Screw Press Commissioning | |
| 04 | Export Revenue Growth | |
| 05 | Q4 FY26 EBITDA Margin |
| Severity | Risk |
|---|---|
high | Tipping Jack validation process The Tipping Jack is a highly safety-sensitive item, and unlike trailer axles, there is no external agency like ARAI to validate it, requiring internal validation which can prolong acceptance. Management |
medium | Commodity price volatility (steel) Steel prices started trending upwards from December, which could impact gross margins, though management expects OEMs to compensate for price hikes. Management |
Kross Ltd reported robust Q3 FY26 results, with revenue growing 18.3% YoY to INR177.5 crores and EBITDA margin at 13.2%. This performance was significantly boosted by the M&HCV segment, which showed growth for the first time in seven quarters, with H2 FY26 revenues expected to be substantially higher than H1 FY26. The tractor segment also contributed positively, achieving a healthy 16% revenue growth during 9M FY26, with strong momentum carrying into Q4.
The company is actively expanding its manufacturing capabilities, with the axle beam extrusion plant expected to be commissioned by February 2026, enhancing capacity by approximately 50%. Construction of the seamless tube facility is complete, and new forging presses (2000-ton, 1000-ton, and a 1600-ton screw press by February) are being added. Kross also launched the Tipping Jack, a new product for the trailer segment, which is currently undergoing validation and is targeted to generate INR45-50 crores in revenue by FY27.
Exports contributed 4% to the 9M FY26 revenue, growing 14%, and are targeted to reach 5% for the full year, with an ambitious goal of scaling to double-digits by FY28. The company secured purchase orders from a leading Tier 1 European firm and is validating new components for another Tier 1 customer, expecting meaningful revenues from Q1 FY27. For its extruded axle line, Kross aims to increase its market share from the current 26-28% to 35% and fully utilize its 7,500 extruded beam capacity within the next 1.5 years.
While other expenses increased to 26.5% of sales in Q3 FY26 (from 24.5% in Q3 FY25) due to investments in new projects and consumables, management expects these costs to stabilize. As new product lines and capacity expansions begin contributing to the top line from Q4 FY26 and Q1 FY27, the company anticipates EBITDA margins to improve, targeting closer to 15% for Q4 FY26. Gross margins are expected to be maintained, with OEMs compensating for steel price hikes.
Approximately 90% of the IPO proceeds have been deployed, with the remaining 10% slated for utilization within FY26. The company incurred INR60 crores in capex during H1 FY26, with an expectation of INR80-90 crores by year-end. Future capex will primarily focus on balance payments for the seamless tube project and incremental annual investments, with major forging press installations largely completed.