Kross Limited Submits Earnings Conference Call Transcript from May 13, 2026

Kross Limited has submitted the transcript of its earnings conference call held on May 13, 2026, as per SEBI regulations. The call, hosted by Equirus Securities Private Limited, featured management including Mr. Sudhir Rai (Chairman & Managing Director), Mr. Sumeet Rai (Whole-Time Director), and Mr. Kunal Rai (Whole-Time Director & CFO).

During the call, the management highlighted that Kross Limited concluded FY26 on a strong note, achieving a top-line growth of 8.5% despite a slow first half. The second half of FY26 saw a significant 49.2% revenue increase over the first half. Quarterly performance showed consistent acceleration, with Q3 FY26 sales growing 18.1% year-on-year and Q4 FY26 sales growing 22% year-on-year.

The auto component sector, particularly for tractors, commercial vehicles, and trailers, has seen a strong recovery in H2 FY26, a trend expected to continue into Q1 FY27. The company has launched and validated its Tipping Jacks product, contributing to Q4 sales and strengthening its position in the trailer ecosystem. The tractor segment is on track to contribute approximately 15% of total revenue within two years, driven by new customer additions and product diversification. Exports contributed 4% to FY26 revenue, with plans to increase this share in the next two years by securing orders from European Tier-1 customers.

Strategic investments in capacity expansions are progressing well. The Axle Beam Extrusion plant has been commissioned, with sales commencing in May 2026. The Seamless Tube facility construction is nearly complete, with installations underway. Forging capabilities have been significantly expanded with new high-tonnage presses. A High Pressure Mold Line is expected to be operational by September 2026, doubling casting capacity, and a new Robotic Forging facility for Rear Axle Shafts is also expected to be ready by September 2026.

Financially, for Q4 FY26, revenue stood at ₹225.4 crores (a 22% year-on-year growth), EBITDA at ₹33.6 crores (up 25% year-on-year) with a margin of 14.9%, and PAT at ₹22.4 crores (up 31% year-on-year) with a margin of 10%. For the full year FY26, revenue was ₹673.2 crores (up 8.5%), EBITDA was ₹87.9 crores (up 8.2%) with a margin of 13.1%, and PAT was ₹55.2 crores with a margin of 8.2%. The company has also fully utilized its IPO proceeds.

Looking ahead, management expects continued demand momentum in FY27, supported by a healthy order book and capacity expansions. The seamless tube unit is expected to contribute to revenue growth from FY28. The company aims to maintain EBITDA margins between 14% to 15% in the coming quarters, despite commodity price fluctuations, with a focus on backward integration and exports to enhance margins.