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.

Kranti Industries Limited has concluded its Q3 and nine months FY26 earnings conference call on February 17, 2026, following the filing of unaudited financial results for the third quarter and nine months ended December 31, 2025. The company had previously filed these results with BSE Limited on February 14, 2026, under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Earnings Conference Call Details

The earnings conference call was conducted on February 17, 2026, commencing at 4:00 PM IST and concluding at 4:33 PM IST. The call was held with various analysts and institutional investors to discuss the company's unaudited financial results and overall business performance.

Management Representation

Mr. Sachin Subhash Vora, Chairman and Managing Director, and Mr. Sumit Subhash Vora, Whole Time Director, represented the company during the earnings call. The management briefed participants on the published financial results followed by a question-and-answer session addressing queries about the company's performance.

Filing and Compliance Details

The company had filed comprehensive documentation with the stock exchange, including both standalone and consolidated financial statements. The filing was signed by Sampada Shekhar Barsawade, Company Secretary and Compliance Officer.

Auditor Review and Subsidiary Information

G M C S & Co., Chartered Accountants (FRN: 141236W), conducted the limited review of both standalone and consolidated financial results. The consolidated results include Preciso Metall Private Limited, a 59.84% subsidiary, which reported total revenues of ₹814.73 lakhs for the nine months period. The financial results were approved by the Board of Directors and comply with Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013.