KROSS reports Rs 13.31 cr standalone profit with 10.69% margin
Operating costs absorbed most of revenue, while other income made only a small contribution to pre-tax profit.
Filed 24 Jul 2026, 18:32 IST · after market close · KROSS (KROSS)
Key takeaways
- Standalone operating margin was 12.23%, with management saying higher depreciation from strategic investments moderated profit growth.
- Net profit was Rs 13.31 cr, while other income of Rs 0.39 cr was small relative to profit before tax of Rs 17.83 cr.
- Management said the axle beam extrusion plant will begin commercial production in August 2026 with capacity of 7,500 units per month.
Profit conversion was shaped by investment-led depreciation
Kross reported standalone revenue of Rs 184.34 cr and net profit of Rs 13.31 cr for Q1FY27. Operating margin was 12.23%, while management said higher depreciation from strategic capital investments moderated profit growth. Other income contributed only Rs 0.39 cr against profit before tax of Rs 17.83 cr, indicating that reported profit was not materially supported by non-operating income.
Monsoon softness followed a stronger tractor and agri quarter
Management said demand marginally contracted in the latter part of May and June because of the monsoon season. It also reported approximately 40% year-on-year growth in the tractor and agri segment during Q1 and said volume indications for Q3 and Q4 FY27 remain encouraging. The company produced 220 tipping jack kits and launched precision hydraulic tipping jacks for dumpers and tip trailers.
Axle-beam capacity is the main operating milestone
Management said the axle beam extrusion plant has been commissioned, with commercial production scheduled for August 2026 and capacity increased to 7,500 units per month. It said EBITDA margins at the plant are expected to improve significantly above 50% utilisation. The company also said a high-pressure moulding line targeted for completion by September 2026 will double casting capacity, while an additional 1000-tonne forging press has been ordered.
Results were filed after the market close
The standalone results were filed after market close on 24 July 2026, so there was no immediate stock reaction to assess. Management said secured orders from a European Tier-1 player should support a higher export share over the coming years and that the seamless tube project will reduce dependence on external suppliers.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹184 cr |
| Other income | ₹0 cr |
| Expenses | ₹162 cr |
| Operating profit | ₹23 cr |
| Operating margin (%) | 12.23% |
| Interest | ₹2 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹18 cr |
| Tax | ₹5 cr |
| Net profit | ₹13 cr |
| EPS (₹) | ₹2.06 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The tractor and agri segment delivered approximately 40% year-on-year growth in Q1.
- The company produced 220 tipping jack kits in Q1 FY27.
Guidance & outlook
- Management said demand outlook across all OEMs remains very promising.
- The company reported encouraging volume indications for Q3 and Q4 FY27 despite monsoon slowdowns.
- EBITDA margins for the axle beam extrusion plant are expected to improve significantly above 50% utilization.
- Kross expects to deliver healthy growth in FY27.
Expansion
- The axle beam extrusion plant was commissioned, with commercial production scheduled to begin in August 2026.
- The axle beam extrusion plant's capacity has increased to 7,500 units per month.
- An additional 1000-tonne forging press has been ordered.
- The high-pressure moulding line is scheduled for completion by September 2026 and will double casting capacity.
New orders
- The company has secured orders from a European Tier-1 player to increase its export share.
New products
- Kross launched precision hydraulic tipping jacks for dumpers and tip trailers.
New initiatives
- The seamless tube project will strengthen backward integration and reduce dependence on external suppliers.
- Technology upgradation is underway in axle shaft production.
Competition
- The extruded axle beam technology is expected to drive market share gains.
Problems & risks
- Demand marginally contracted in the later part of May and June due to the monsoon season.
- Profit growth was moderated by higher depreciation expenses from strategic capital investments.
What to watch
- Whether commercial production at the axle beam plant begins in August 2026 and scales toward 7,500 units per month.
- Whether operating margin holds around 12.23% as depreciation rises with strategic capital investments.
- Whether the high-pressure moulding line is completed by September 2026 and doubles casting capacity.