Kranti Industries Limited has announced a significant operational milestone for its associate company, with Krako Precision Private Limited successfully launching trial production at its new manufacturing facility in Gujarat.

Trial Production Commencement

Krako Precision Private Limited commenced trial production on March 16, 2026, marking a crucial phase in the company's operational journey. The manufacturing facility is strategically located at Industrial Plot No. SME-1/19, Halol 2, Maswad Industrial Estate, Taluka Halol, District Panchmahal, Gujarat.

Strategic Significance

The commencement of trial production represents a significant milestone in KPPL's project implementation strategy. This development is expected to strengthen the company's operational capabilities and support future growth initiatives. The successful launch of trial operations demonstrates progress in the associate company's manufacturing readiness and technical capabilities.

Commercial Production Timeline

Kranti Industries indicated that commercial production is expected to commence shortly upon successful completion of the trial runs. This phased approach allows for operational fine-tuning and quality assurance before full-scale production begins.

Corporate Background

Krako Precision Private Limited was incorporated as an associate company of Kranti Industries Limited, with the initial incorporation announcement made on October 23, 2025. The company has now progressed from incorporation to operational trial phase within approximately five months.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparent communication with stakeholders regarding material developments in associate company operations.

Kranti Industries Limited has delivered a strong financial performance in Q3 FY26, demonstrating significant growth across key metrics while marking its strategic entry into the defence manufacturing sector. The precision engineering company's latest results showcase robust operational improvements and successful diversification initiatives.

Strong Revenue Growth and Profitability Recovery

The company reported impressive financial results for Q3 FY26, with substantial improvements across all major parameters:

The revenue growth was driven by improved execution across core automotive and industrial segments, along with early contributions from newly diversified verticals. Sequential growth of 5.8% over Q2 FY26 demonstrates consistent momentum throughout the year.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, Kranti Industries maintained strong growth trajectory:

The significant margin expansion reflects operating leverage benefits, improved product mix, cost optimization initiatives, and better capacity utilization across manufacturing facilities.

Strategic Entry into Defence Manufacturing

Kranti Industries achieved a major strategic milestone during Q3 FY26 with its formal entry into the defence manufacturing segment. The company secured multiple purchase orders from Armoured Vehicles Nigam Limited, including mandates from Machine Tool Prototype Factory and Heavy Vehicles Factory.

These orders involve precision machining of critical components and demonstrate the company's technical capabilities and adherence to stringent quality standards required for defence applications. The entry aligns with government focus on indigenization and domestic defence production.

Facility Expansion and Infrastructure Development

The company commissioned its new Plant 4 facility in Jaipur, commencing commercial operations from January 1, 2026. This represents a strategic brownfield expansion through takeover of Universal Autofoundry's complete machining business.

Plant 4 Facility Specifications:

• Area: 35,160 sq ft machining facility
• Equipment: Advanced CNC infrastructure with 45 machines
• Capacity Utilization Target: 70-80% by April 2026
• Investment Model: Lease-based to optimize capital costs

This expansion strengthens manufacturing footprint, enhances operational flexibility, and positions the company to efficiently cater to increasing demand from defence and industrial segments.

Market Outlook and Strategic Focus

Management highlighted favorable industry dynamics supporting continued growth. The Indian manufacturing sector benefits from government initiatives including Make in India, PLI schemes, and increased infrastructure spending. Union Budget 2026 reinforced momentum with continued emphasis on defence capital expenditure and manufacturing incentives.

The company targets maintaining EBITDA margins at 16-18% levels while focusing on:

• Stabilizing and scaling Plant 4 operations
• Strengthening customer relationships across automotive, EV, industrial and defence segments
• Exploring export opportunities under China Plus One strategy
• Maintaining financial discipline and prudent leverage management

With diversified sector presence and expanding manufacturing capabilities, Kranti Industries is positioned to capitalize on structural growth opportunities while reducing cyclical risks through its multi-segment approach.