Krishna Defence revenue more than doubles sequentially; margin edges up
Expenses grew slightly slower than revenue, while a higher tax rate and increased interest limited the conversion of operating gains into net profit.
Filed 30 Oct 2026, 19:15 IST · after market close · Krishna Defence & Allied Industries Ltd (KRISHNADEF)
Key takeaways
- Standalone revenue rose 130.71% sequentially to Rs 132.89 cr, while operating margin improved by 0.33 percentage points.
- Net profit increased 129.56% sequentially to Rs 26.79 cr, but other income contributed 7.47% of pre-tax profit.
- The 26.65% operating margin was 14.22 percentage points above the 12.43% median for 67 reporting Industrials peers.
Price around the results
Revenue surged in the standalone Q2FY27 results
Revenue grew 130.71% sequentially, ahead of the 129.69% increase in expenses, lifting operating profit 133.58% to Rs 35.41 cr. Net profit rose 129.56% to Rs 26.79 cr, while EPS increased to Rs 17.93 from Rs 7.81. The results were filed after market close.
Slight cost advantage supported the margin
Because expenses grew slower than revenue, operating margin expanded by 0.33 percentage points to 26.65%. Interest increased 91.67% and depreciation rose 114.68% sequentially, while the tax rate increased by 2.83 percentage points to 24.51%. Other income was 7.47% of pre-tax profit, so it was a noticeable but not dominant part of reported profit.
Margin stayed well above the Industrials peer median
Krishna Defence's 26.65% operating margin was 14.22 percentage points above the 12.43% median among 67 Industrials companies that had reported the quarter. The margin also moved up from 26.32% in Q1FY27, although the available quarterly trend does not establish a longer direction.
Management flags composite-door readiness and growth aim
Management said the facility for fire-resistant composite doors and hatches has been commissioned and is in the final stages of manufacturing readiness. The company said it is aiming for growth of more than 30% CAGR over the next three to five years.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹133 cr | ₹58 cr | +130.71% |
| Other income | ₹3 cr | ₹1 cr | +181.91% |
| Expenses | ₹97 cr | ₹42 cr | +129.69% |
| Operating profit | ₹35 cr | ₹15 cr | +133.58% |
| Operating margin (%) | 26.65% | 26.32% | — |
| Interest | ₹0 cr | ₹0 cr | +91.67% |
| Depreciation | ₹2 cr | ₹1 cr | +114.68% |
| Profit before tax | ₹35 cr | ₹15 cr | +138.19% |
| Tax | ₹9 cr | ₹3 cr | +169.35% |
| Net profit | ₹27 cr | ₹12 cr | +129.56% |
| EPS (₹) | ₹17.93 | ₹7.81 | +129.58% |
Operating margin of 26.65% compares with a Industrials sector median of 12.43% across 67 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is aiming to grow at a CAGR of more than 30% for the next three to five years.
Expansion
- The composite doors and hatches facility has been commissioned and is in the final stages of manufacturing readiness.
What to watch
- Whether operating margin holds above 26.65% in the next reported quarter.
- Whether the commissioned composite-doors and hatches facility moves beyond final manufacturing readiness.
- Whether the company continues to discuss its aim of more than 30% CAGR over the next three to five years.