Kross Ltd Net Profit Surges 143% to ₹19.7 Crore as Operating Margins Expand in Q2-27

Key numbers

P/E Ratio	30.34Sector PE 32.59
Market Cap	₹1,754.66 CrAuto Components
RSI	63.04Neutral Zone
1-Year Return	49.8%Price Performance

Key highlights

• Net profit jumped 143.2% year-on-year to reach ₹19.7 crore in Q2-27
• Revenue from operations grew 79.4% to ₹235 crore compared to ₹131 crore in Q2-26
• Operating margins improved to 11.4% from 8.9% in the same period last year
• Profit before tax rose to ₹27.0 crore, marking a 51.7% sequential growth from Q1-27
• Company is awaiting final approvals for a preferential issue of 15 lakh equity shares

Triple-Digit Profit Growth Driven by Volume Gains

Kross Ltd recorded a significant surge in its financial performance for the quarter ended September 30, 2026, with net profit jumping 143.2% YoY to ₹19.7 crore. This growth was underpinned by a 79.4% increase in revenue from operations, which reached ₹235 crore compared to ₹131 crore in the corresponding period last year. The quarter also saw substantial sequential momentum, with a 48.1% rise in profit from the preceding June quarter.

This trajectory aligns with the company's recent capacity additions, including the axle beam extrusion facility commissioned earlier in 2026, which has enhanced its specialized manufacturing capabilities for the commercial vehicle segment.

Operational Efficiency and Margin Expansion

• Operating margins expanded to 11.4% in Q2-27, up from 9.6% in the previous quarter and 8.9% in Q2-26.
• Cost of materials consumed for the half-year ended September 30, 2026, stood at ₹235.53 crore.
• Total expenses for the current quarter were contained at ₹210.31 crore against total income of ₹237 crore.
• Employee benefit expenses increased to ₹10.29 crore from ₹8.84 crore in the year-ago quarter.
• The company continues to operate as a single segment focused on motor vehicle parts and accessories.

Capital Allocation for Seamless Tube Plant

The company is actively pursuing capital expansion to support long-term growth, with shareholders having recently approved a preferential fundraise of approximately ₹63.60 crore. As of the September 30 filing, the allotment of 15,00,000 equity shares and an equal number of convertible warrants remains pending in-principle approval from the BSE and NSE. This capital injection is intended to support the company’s ₹100 crore CapEx plan for FY27, which includes establishing a seamless tube plant.

These investments are designed to vertically integrate operations and reduce dependence on external raw material sourcing for critical axle components.

Segment Reporting and Statutory Compliance

The company is engaged in manufacturing and sales of 'Motor vehicle parts & accessories' and the management review the performance of the company as single operating segment in accordance with Ind AS -108 'Operating segments' notified pursuant to the Companies (Indian Accounting Standards), Rules, 2015.

What to watch next

• In-principle approval from Stock Exchanges for preferential allotment of 15,00,000 shares
• Earnings conference call scheduled for October 19, 2026, for further management commentary
• Execution milestones for the planned ₹100 crore seamless tube plant expansion in FY27

Kross · financial snapshot

Share price	₹272
Market capitalisation	₹1,754.66 Cr
Revenue (annual)	₹673.20 Cr
Net profit (annual)	₹55.21 Cr
Revenue (latest quarter)	₹184.34 Cr-18.23% vs previous quarter
Net profit (latest quarter)	₹13.31 Cr-40.70% vs previous quarter
P/E (TTM)	30.34×Sector 32.59×
Promoter holding	68.57%0.00% QoQ
FII holding	3.37%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.