CARE Ratings Limited (Care Edge) has withdrawn all credit ratings assigned to Kross Limited 's bank facilities, effective December 4, 2025. This decision comes after the company surrendered these facilities, with no outstanding amounts remaining.

Key Points

• Credit ratings withdrawal initiated on December 4, 2025
• Kross Limited surrendered all rated bank facilities
• No outstanding amounts on the facilities as of the withdrawal date
• No Objection Certificates (NOCs) received from respective banks

Background

Kross Limited, a manufacturer of automobile parts for commercial vehicles and tractors, had previously held credit ratings from CARE Ratings Limited. The company's decision to surrender its bank facilities led to the withdrawal of these ratings.

Financial Position

While the credit ratings have been withdrawn, it's worth noting Kross Limited's current financial position based on their latest balance sheet data:

The company's balance sheet shows significant growth in total assets and equity over the past year, while current liabilities have decreased.

Implications

The withdrawal of credit ratings following the surrender of bank facilities could indicate that Kross Limited:

1. Has improved its liquidity position
2. May be exploring alternative financing options
3. Might be restructuring its debt profile

Investors and stakeholders should monitor future announcements from Kross Limited for any changes in its financing strategy or capital structure.

Conclusion

The withdrawal of Kross Limited's credit ratings marks a significant change in the company's financial landscape. As the company moves forward without these rated bank facilities, it will be important to observe how this decision impacts its operations and financial strategy in the coming months.

Kross Limited , a leading auto component manufacturer, reported a 6% year-on-year decline in revenue for the second quarter of fiscal year 2026, with total revenue standing at INR 130.90 crores. The company's performance was impacted by a slowdown in the commercial vehicle (CV) sector, primarily due to customers postponing purchases following GST rate cut announcements.

Financial Highlights

• Q2 FY26 revenue: INR 130.90 crores (down 6% YoY)
• EBITDA: INR 14.80 crores
• EBITDA margin: 11.30%
• H1 FY26 revenue: INR 270.00 crores (down 5% YoY)
• H1 FY26 EBITDA: INR 30.90 crores
• H1 FY26 EBITDA margin: 11.40%

Segment Performance

The company's performance across its two main business segments for Q2 FY26 was as follows:

Export Growth

Despite the overall revenue decline, Kross Limited's export business showed strong growth:

• Exports grew 24% year-on-year
• Contributed 4.20% to H1 FY26 revenue

The company has secured purchase orders from leading Tier-1 OEMs in Europe across two product families, with final supplier approval expected in Q3 FY26.

Expansion Initiatives

Kross Limited is progressing with several capacity expansion projects:

1. Extrusion Plant: Trials are underway, with commercial production scheduled to commence by the end of Q3 FY26. This will enhance axle capacity by 50%.

2. Seamless Tube Unit: Construction is on schedule, with foundation work for heavy machinery underway.

3. Tipping Jack Segment: The company has entered this new segment to diversify revenue streams. Production of the first batch is scheduled for November 2025.

Outlook

Despite the current slowdown, Kross Limited remains optimistic about its future performance. The company cites several factors supporting its positive outlook:

• Favorable economic environment
• GST rate reduction
• Strong monsoon
• Robust domestic demand visibility
• New product lines introduced
• Ongoing capacity expansions

The management expects to deliver significant growth in H2 FY26 compared to H1 FY26.

Management Commentary

Kunal Rai, Whole-Time Director and CFO of Kross Limited, stated, "The announcement of GST rate cut led customers to postpone purchases from August and September into Q3, impacting the CV business in Q2. Though MHCV volumes remained soft during the quarter, demand has picked up meaningfully from Q3."

He added, "We remain on track to achieve a full-year export revenue contribution of 5%, with a clear roadmap to reach double-digit export share by FY27."

As Kross Limited navigates through the current market challenges, its focus on diversification, capacity expansion, and export growth may position the company for potential recovery in the coming quarters.