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 announced the completion of tenure for one of its Independent Directors, marking a significant board transition for the company.

Director Tenure Completion

Mr. Pramod Vinayak Apsankar (DIN: 00019869) completed his second consecutive term as a Non-Executive Independent Director of Kranti Industries Limited on February 12, 2026. He ceased to hold office as an Independent Director from the closure of business hours on the same date.

Regulatory Compliance Details

The company filed the intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure includes comprehensive details as required under the regulatory framework:

Company Acknowledgment

The Board of Directors and Management expressed deep gratitude for the invaluable contributions, guidance, and services rendered by Mr. Pramod Vinayak Apsankar during his association with the company. The announcement was signed by Sampanda Shekhar Barsawade, Company Secretary & Compliance Officer.

Regulatory Framework

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI Listing Regulations and SEBI master circular no SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has fulfilled all mandatory disclosure requirements for changes in board composition.