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    Kross Ltd

    KROSS
    Automobile and Auto Components·30 Jan 2026
    Management Summary

    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.

    Highlights

    5

    • Q3 FY26 Revenue grew 18.3% YoY to INR177.5 crores, and 37% QoQ.

    • Q3 FY26 EBITDA margin stood at 13.2%, with EBITDA growing 18.9% YoY to INR23.5 crores.

    • The M&HCV segment showed growth for the first time in seven quarters, with H2 FY26 revenues expected to be significantly higher than H1 FY26.

    • The tractor segment delivered healthy revenue growth of 16% during 9M FY26, with a target to increase its contribution to 15% of total revenue over the next two years.

    • Exports contributed 4% to 9M FY26 revenue, growing 14%, with a target to reach 5% for the full year and double-digits by FY28.

    Concerns

    2

    • Other expenses as a percentage of sales increased to 26.5% in Q3 FY26 from 24.5% in Q3 FY25, attributed to investments in new projects not yet generating revenue.

    • Gross margins saw an 80 bps QoQ impact in Q3, despite steel being soft, though management expects to maintain margins with OEM compensation for price hikes.

    What Changed2

    vs Q4 FY26

    Guidance items10 → 13 (+3)Risks discussed4 → 2 (-2)
    Key financials

    Metrics

    10

    Periods

    2

    Headline

    5
    • Revenue
      ₹177.5 Cr
      YoY+18.3%QoQ+37%
    • EBITDA
      ₹23.5 Cr
      YoY+18.9%
    • EBITDA Margin
      13.2%
    • PAT
      ₹14 Cr
      YoY+3%
    • PAT Margin
      7.9%

    9M

    5
    • Revenue
      ₹447.8 Cr
      YoY+2.8%
    • EBITDA
      ₹54.4 Cr
    • EBITDA Margin
      12.1%
    • PAT
      ₹32.8 Cr
      YoY+6.1%
    • PAT Margin
      7.3%

    Segment breakdown

    Q3 FY26 Sales Mix
    40.7% Trailer Axles & Suspension59.3% Other Components (CV, Exports, Tractors)
    9M FY26 Sales Mix
    41.3% Trailer Axles & Suspension58.7% Rest
    CV Components
    ₹82 Cr Q3 Revenue16% Q3 YoY Growth
    Tractor Components
    16% 9M Revenue Growth25% Q3 YoY Growth
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹80 crores

    IPO proceeds and out of IPO proceeds for seamless tube expansion

    Guidance & targets

    13
    CategoryTargetPriority
    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

    Tipping Jack Validation & Production Ramp-up

    Next quarter (Q4 FY26)
    Current35-40 assemblies dispatched, internal validation ongoing
    TargetJan/Feb launch, Q4 production of 300 units, faster penetration after 7-8 months post validation

    Why it matters

    This is a new product launch, crucial for achieving the FY27 revenue target of INR45-50 crores and expanding the product portfolio.

    We will like to launch this product sometime in January or February this year. We have already, you know, dispatched close to about 35 or 40 assemblies in the field. And as far as our capacity for manufacturing, this Tipping Jacks is close to 800 assemblies a month. It will take us maybe the whole financial year FY '27 to come to the peak capacity. In fact, for this quarter, that is Q4, we have a plan to do 300 units also.

    How to verify

    key_financials.segment_breakdown[name='Tipping Jack'].metrics[label='Volume']

    Risks & concerns

    2
    RiskSeverity

    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 acknowledged

    high

    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 acknowledged

    medium

    Q&A highlights

    8

    “We will like to launch this product sometime in January or February this year. We have already, you know, dispatched close to about 35 or 40 assemblies in the field. And as far as our capacity for manufacturing, this Tipping Jacks is close to 800 assemblies a month. It will take us maybe the whole financial year FY '27 to come to the peak capacity. But otherwise, currently, we are at, I think, so close to 350 to 400 units. That is from the time where we will start producing in bulk. Currently, we are awaiting our validation of -- It's a highly safety item so we have to go through the process of validation. Unfortunately, you don't have an external agency like ARAI, which validates this part.”

    Analyst sought specific numbers on acceptance and profitability for a new product, but management provided qualitative updates on validation and deferred margin predictions, indicating early-stage development.

    asked by Aakash

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q3 FY26 Performance Driven by M&HCV and Tractor Segments

    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.

    02

    Strategic Capacity Expansion and New Product Launches

    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.

    03

    Export Growth and Market Share Ambitions

    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.

    04

    Margin Outlook and Cost Management

    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.

    05

    Utilization of IPO Proceeds and Future Capex

    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.

    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.