Kross Reports 80% YoY Revenue Growth in Q2 FY27, PAT Reaches Rs.19.69 Crore

Kross reported revenue of Rs 419.4 crore and profit after tax (PAT) of Rs 33.16 crore for H1 FY27, with management expecting stronger volumes in the second half of the financial year.

Trailer and Component Businesses Support Growth

Kross's revenue mix remained balanced between its trailer and component businesses during the quarter. The trailer segment contributed 49% of Q2 revenue, while components accounted for the remaining 51%. Exports also continued to contribute to the component business, representing around 7.5% to 8% of its total component revenue.

The company has also started commercial production of extruded axle beams. The facility is currently operating at 65% to 80% capacity utilisation, providing scope to increase output as demand develops.

Financial Performance, Expansion Plans and Outlook

• Q2 FY27 revenue: Revenue from operations stood at Rs 235 crore, registering 80% year-on-year growth.
• Q2 EBITDA: EBITDA came in at Rs 30.6 crore, translating to an operating margin of approximately 13%.
• Q2 PAT: Profit after tax reached Rs 19.69 crore.
• H1 FY27 performance: Revenue stood at Rs 419.4 crore, while PAT was Rs 33.16 crore for the first half of the financial year.
• Revenue mix: The trailer segment contributed 49% of Q2 revenue, with the component business accounting for 51%.
• Exports: International sales accounted for approximately 7.5% to 8% of the component business.
• Extruded axle beams: Commercial production has commenced, with capacity utilisation currently ranging between 65% and 80%.
• Second-half outlook: Management expects Q3 and Q4 volumes to remain strong, noting that second-half volumes have historically been around 20% higher than those in the first half.
• Backward integration project: Kross is investing Rs 170 crore in a seamless tube project. The funding plan includes Rs 110 crore in term loans and Rs 60 crore from internal accruals.
• Margin outlook: Higher steel and consumable costs are putting pressure on margins in the near term. Management expects price revisions by original equipment manufacturers (OEMs) to help support profitability in the coming quarters.

What to Watch Next

Market participants will monitor whether Kross maintains its revenue momentum in the second half of FY27, improves capacity utilisation at its extruded axle beam facility and manages rising input costs. Progress on the Rs 170 crore seamless tube project and the timing of OEM price revisions will also be important factors influencing margins and profitability.