Krishna Defence & Allied Industries Ltd (KRISHNADEF) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Antique Stock Broking Limited): Ladies and gentlemen, good day and welcome to Krishna Defence and Allied Industries Limited Q2 and H1 FY '27 Earnings Conference Call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjeev from Antique Stock Broking Limited. Thank you, and over to you.
Sanjeev (Antique Stock Broking Limited): Thank you, operator. Good evening. On behalf of Antique Stock Broking, I welcome you all to the 2Q FY '27 earnings conference call of Krishna Defence and Allied Industries. I am pleased to have with us today Mr. Ankur Shah, Managing Director; and Mr. Manish Shah, the Chief Financial Officer, along with the management team. Congratulations to Mr. Ankur and team for delivering strong profit growth in 2Q, and all the best for the future. So, may I now invite Mr. Ankur to discuss the results, post which we can take the Q&U-- Q&A. And so, over to you, Ankur. Thank you.
Ankur Shah (Krishna Defence & Allied Industries Ltd): Thank you, Sanjeev ji. Good afternoon to everyone. Thank you for joining us on the second quarter FY '27 earnings call of Krishna Defence and Allied Industries Limited. I am Ankur Shah, the Managing Director of our company, and I and I'm joined with our CFO Manish Shah and our IR
Ankur Shah (Krishna Defence & Allied Industries Ltd): We appreciate your time and your continued interest in the company. Let me start with a few words on who we are. Krishna Defence is an engineering and a manufacturing company headquartered in Mumbai. We work towards special steels, metal, composite, and defense systems which are used for hull construction of warships, commercial ship building, and also battle tanks for the Indian Army. Our facilities are based in Halol and Kalol in Gujarat. And our focus has always been simple, build to specification and deliver on time. The quarter gone by had its share of progress and challenges. Our CFO will take you through the numbers in details shortly. I'll only say that we continue to learn from each quarter. Where we've done well, we try to build on it. Where we've fallen short, we work to correct it. On the way forward, our priorities are clear. First, execution. Our most important task is to deliver our current order book with quality and on time in schedule. Second, capability. We are steadily investing in our people, process, and facilities, so we can take on more complex and higher value jobs for the forces. Third, partnerships. We continue to work with domestic and international partners to bring in technology for manufacturing in India in line with the Government of India's vision of Aatmanirbhar. Fourth, discipline. We will grow carefully, keeping a close watch on working capital, cost, and governance. The defense and allied sectors in India offer a real opportunity. They also demand patience, consistency, and accountability. We don't take any of that for granted. With that, I'll hand over to Manish bhai to take you through the financial performance for the quarter. Thank you.
Manish Shah (Krishna Defence & Allied Industries Ltd): Thank you, Ankur, sir. And good afternoon, everyone. Let me walk you through quickly the key financial metrics of Q2 FY '27. So, we delivered a quarter with standalone revenue reaching to 753 million, registering a year-on-year growth of, you know, 55.7% basically. EBITDA has been more than doubled, growing by 119.9% to 203 million. And our EBITDA margin has also expanded by 786 basis point to 26.9%, marking the highest ever EBITDA margin achieved by the company. Our EBIT has also increased by 125% to 207 million. And this has translated into 120% growth in the net profit as well to 151 million, with net profit margin improving by 590 basis point to 20.1%. So, our focus remains on sustaining these margins, while converting our order pipeline into profitable growth. I'll take a pause and hand it over back to Ankur sir. Thank you.
Ankur Shah (Krishna Defence & Allied Industries Ltd): Yes, thank you very much, Manish bhai. I'll give it over to Mr. Sanjeevji just to curate the Q&As that are there. I didn't want to take up too much time on the company introduction, so I think Q&A will give us more questions and more interest for everyone on the call. Thank you. Over to you, Sanjeevji.
Moderator (Antique Stock Broking Limited): Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Moderator (Antique Stock Broking Limited): The first question is from the line of Avikshit Vijay from Vantage IQ Technologies. Please go ahead.
Avikshit Vijay (Vantage IQ Technologies): Yeah, hi. Am I audible?
Ankur Shah (Krishna Defence & Allied Industries Ltd): Yes.
Avikshit Vijay (Vantage IQ Technologies): Thank you so much for the opportunity, and congratulations on a fantabulous quarter. I just had a couple of questions in mind. The first is on the financials. Receivables have spiked this half year, and order book has also dropped sequentially. So, could you just give us an understanding of how to read this?
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