Kross Limited (ISIN: INE0O6601022) has reported a robust 40% year-on-year growth in Profit After Tax (PAT) for the first quarter of fiscal year 2026, despite facing a 5% decline in revenue. The company's financial performance demonstrates resilience in the face of challenging market conditions, particularly in the commercial vehicle (CV) segment.

Financial Highlights

Segment Performance

The company's diversified business model helped offset the weakness in the CV segment:

• Trailer Axles and Suspensions: Contributed 40% to the total revenue
• Other Component Business: Accounted for 60% of the revenue
• Agriculture Segment: Showed strong growth, partially offsetting the decline in the CV segment
• Export Segment: Revenue contribution reached 4%, keeping the company on track for its full-year export target of 5%

Operational Updates

New Extrusion Line

• Machinery delivered
• Commercial production expected to commence from Q3 FY26
• Will expand axle manufacturing capacity from 5,000 to 7,500 units per month

Seamless Tube Facility

• Construction on track for completion by December 2025
• Production targeted to begin in Q4 FY27

Forging Capabilities

• Doubled forging capacities in FY26 with new screw presses
• Plans to install additional presses in H2 FY26

New Product Launches

• Tipping jack products scheduled for launch in October 2025
• Introduced car carrier axle and suspension products

Management Commentary

Mr. Sudhir Rai, Chairman and Managing Director, commented on the results: "Despite the cyclical slowdown over the past 16-17 months, we have managed to remain steady. While the overall environment was challenging, we maintained a healthy order book and our margins improved relative to broader market conditions."

Mr. Kunal Rai, Whole Time Director and CFO, added: "While the quarter witnessed some softness in the top line, improvement in profitability margins underscores the strength of our operations. We continue to make steady progress on our long-term strategic roadmap with a clear focus on execution and resilience."

Future Outlook

• Management expects the second half of FY26 to perform better than the first half
• Projecting 10-12% top-line growth for the full year FY26
• Aiming to reach double-digit export contribution by the end of FY27
• Focused on expanding customer base and strengthening market outreach in the trailer segment

Kross Limited remains committed to its strategic initiatives, including deepening backward integration, expanding capacities, and diversifying its product portfolio. With strong fundamentals and a healthy order book, the company is well-positioned to navigate short-term headwinds and deliver sustained long-term value for its stakeholders.

KROSS , a prominent player in its industry, has unveiled its financial results for the fourth quarter, showcasing a mix of steady performance and growth in key areas.

Financial Highlights

• Revenue: ₹1.85 billion, up from ₹1.80 billion year-over-year
• EBITDA: ₹268.00 million, compared to ₹267.00 million in the same quarter last year
• EBITDA Margin: 14.49%, slightly down from 14.59% year-over-year
• Net Profit: ₹171.00 million, increased from ₹156.00 million year-over-year and ₹136.00 million quarter-over-quarter

Quarterly Performance Analysis

KROSS demonstrated resilience in its fourth-quarter performance, with notable improvements in revenue and profitability. The company's revenue saw a modest increase to ₹1.85 billion, up from ₹1.80 billion in the same quarter of the previous year, indicating steady growth in its business operations.

Profitability Metrics

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) remained relatively stable at ₹268.00 million, compared to ₹267.00 million in the corresponding quarter last year. However, the EBITDA margin experienced a slight dip to 14.49% from 14.59% year-over-year, suggesting a minor increase in operational costs relative to revenue growth.

Net Profit Growth

A significant highlight of KROSS's Q4 results is the substantial growth in net profit. The company reported a net profit of ₹171.00 million, marking a notable increase from both the year-over-year figure of ₹156.00 million and the previous quarter's ₹136.00 million. This upward trend in net profit indicates improved overall financial efficiency and potentially successful cost management strategies.

Comparative Analysis

The tabulated data highlights the year-over-year improvements across key financial metrics, with the most significant growth observed in net profit, both on a year-over-year and quarter-over-quarter basis.

KROSS's Q4 results reflect a company maintaining steady growth in revenue while significantly improving its bottom line. The slight decrease in EBITDA margin, coupled with the substantial increase in net profit, suggests that the company may have implemented effective strategies to manage its expenses and improve its overall financial performance.