The Capital Markets Tribunal has issued its Reasons for Decision regarding the matter involving DEF Co. and the Ontario Securities Commission. The decision, dated June 5, 2026, addresses the proceedings identified under File No. 2026-22.

The document provides the tribunal's rationale for its ruling in the case. The full text of the Reasons for Decision is accessible to the public through the official tribunal portal.

The Ontario Securities Commission was the opposing party in this matter. The filing confirms that the tribunal has concluded its deliberations and released the formal decision.

Case Details

Stakeholders can access the complete Reasons for Decision by visiting the Capital Markets Tribunal's official website.

Krishna Defence & Allied Industries Limited reported a strong financial performance for the quarter and year ended March 31, 2026, driven by robust execution in the defence manufacturing segment. For Q4FY26, revenue from operations increased 42.2% year-over-year to INR648 million, while net profit surged 72.9% to INR128 million. On an annual basis, the company recorded a revenue of INR2,448 million for FY26, a growth of 29.1% over the previous year, with net profit rising 85.6% to INR413 million. The operating margins improved significantly, with EBITDA for the year increasing 69.9% to INR520 million.

Financial Performance Highlights

The company’s standalone financial results for the quarter and year ended March 31, 2026, reflect substantial growth across key metrics. The Board of Directors had approved the audited financial results during its meeting held on May 20, 2026. The following table summarizes the key standalone financial metrics:

Operational and Strategic Updates

During Q4FY26, the company secured a developmental design order in partnership with DRDO for aircraft arresting gear systems, a product previously imported. The product range for armoured steel profiles was expanded from 17 to 26 variants. The company achieved AS9100D certification for its aviation, space, and defence quality management system and secured IRS certification for commercial shipbuilding bulb bars, adding to its existing DNV and ABS certifications.

Infrastructure developments included the acquisition of an adjoining 50,000 sq. ft. plot in Halol for future capacity expansion. The company created a liquid reserve of INR650 million through fixed deposits to strengthen liquidity. Additionally, the company successfully migrated to the Main Board of NSE in December 2025, reinforcing governance standards.

Order Book and Future Outlook

As on March 31, 2026, the company maintained a strong order book of INR1,034 million and a tender pipeline of INR2,210 million. Management expressed confidence in achieving a growth rate of 30% plus for the next few years, supported by the existing product mix and new naval projects. The company is also developing India's largest Autonomous Underwater Vehicle (AUV) in partnership with the Navy and DRDO and has signed an MoU with the Ministry of Steel for developing strategic steel under the PLI scheme.

Board Decisions and Dividend

The Board of Directors recommended a final dividend of INR1.25 per equity share of INR10 each, representing 12.5%, for the financial year 2025-26, subject to shareholder approval. Additionally, the Board approved the re-appointment of Mr. Jaykumar Toshniwal and Mr. Divyakant Zaveri as Independent Directors for a second term of five consecutive years effective from August 23, 2026. M/s Zarna Thakar Associates was appointed as Cost Auditor and M/s Niket Shah & Associates as Internal Auditor for FY26-27.