Kross Ltd (KROSS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Equirus Securities Private Limited): Ladies and gentlemen, good day, and welcome to Kross Limited Q2 FY '25 earnings conference call, hosted by Equirus Securities Private 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Jain from Equirus Securities. Thank you, sir, and over to you.
Ronak Jain (Equirus Securities Private Limited): Good afternoon, everyone. On behalf of Equirus Securities, I welcome you all to the Q2 FY '25 post results earnings conference call of Kross Limited. From the management side, we have we have with us Mr. Sudhir Rai, Chairman and Managing Director; Mr. Sumeet Rai, Whole-time Director; and Mr. Kunal Rai, Whole-time Director. I will now hand over the call to Kunal sir for his opening remarks. Over to you, sir.
Sudhir Rai (Kross Ltd): Okay. I'm Sudhir here. Good afternoon to everyone. Thank you for joining us on this earnings call of Kross Kross Limited for the second quarter and half yearly ended September 30, 20
Sudhir Rai (Kross Ltd): Alongside me, I have Sumeet Rai, Whole-time Director, Kunal Rai, Whole-time Director, along with other members of our management and our Investor Relations Advisor, Captify Consulting. I am pleased to share that Kross Limited has continued to build on the strong momentum recorded in Q1 FY '25. During Q2 FY '25, revenue from operations stood at 235 crores, registering a growth of 80%. EBITDA was 36 crores and EBITDA margin of 13%, while profit after tax stood at 196 million, reflecting to an year-on-year change of 143%. H1 FY '25, revenues from operations stood at 419 crores, EBITDA at 53 crores, and profit after tax at 33.16. The investments we have made in the capacity expansion and operational capabilities are beginning to support our growth and we expect the utilization of these expanded capacities to improve over the coming quarters. The company is completely focused on capacity expansion and gearing up for the coming years, which is also witnessed by a preferential issue to the tune of 63.6 crores. The sequential improvements in volumes, particularly in the commercial vehicles and trailer segment support our operating performance quarter, during this quarter. While we have witnessed some pressure from rising consumable and commodity costs, the price revisions, including concluded with the OEMs and Tier 1 customers are expected to support us during the Q3 and Q4. We continued to focus on cost discipline, process efficiency, and higher utilizations of capacities we have created. Let me now share a few updates on our business segments and its key performances. M&HCV and commercial vehicles. The momentum in the commercial segment has continued with robust demand indicated by the OEMs. Based on our current indication, we expect Q3 and Q4 volumes to be stronger than Q2. Overall volumes, and historically also, H2 is always 20% up on H1. With the improvement in commercial vehicle volumes, the tractor trailer segment is also performing well, too. Our Q2 volumes have exceeded the earlier recorded levels of Q4 of '24. Trailer segment and extended and extruded axle beams. Commercial vehicles, commercial production of our extruded axle beam has commenced and the capacity utilization of this is approximately 80% of our current output. This initiative is accepted, it's expected to to provide us cost benefit and strengthen our manufacturing capabilities. This this particular aspect of business, by by Q3 or Q4, we will be producing our trailer axles in in this methodology only, by the extruded beam process. Agri segment. Demand in the Agri segment has remained consistent. We expect this momentum to continue into Q3, supported by relatively lower inventory levels of tractors in the market. Exports, continue to make focused efforts to expand our export business. Exports now contribute approximately 8% of our component business.
Sudhir Rai (Kross Ltd): With these remarks, I would like to hand it over to Sumeet Rai to take you through our expansion and other initiatives.
Sumeet Rai (Kross Ltd): Hi, everyone. I'd like to talk about our capacity expansion and new initiatives, and also an outlook on the industry. Our capacity expansion program continues to progress. We have a focus on backward integration, improving cost competitiveness, and creating capacities for our future growth plans. Our seamless tube facility is progressing as per schedule. The sizing mill and straightening mills have been received and installed, and we plan to undertake production trials in February or March of 2027. This facility is expected to broaden our product capabilities and support our long-term growth plans. The company further envisages expansion through strategic increase in axle shaft production, forward integration into manufacturing by making cold-drawn tubes, and enhanced investment in robotic automation for forging operations as well as machining facilities. These initiatives are proposed to be undertaken and financed through the ongoing preferential issue, thereby strengthening the company's technological capabilities, operational efficiency, and value-added product portfolio. Looking ahead at this industry, we remain optimistic about the demand across our industries. The continued momentum in commercial vehicles, healthy tractor demand, and the planned ramp-up for our new products provide good opportunities of growth for us. With this, I'll hand over the call to Kunal to walk you through our financial performance.
Kunal Rai (Kross Ltd): Hi, good afternoon, everybody. I would like to take you through the key financial highlights for both the quarter two, as well as H1 of FY '27. Firstly, on the quarter, which is just ended, September 30, 2026, our revenue from our operations stood at 235 crores, registering a growth of 80% YoY. EBITDA for this quarter was at 30.6 crores with a margin of 13%. PBT is at 26.94, which has changed and increased by hundred more than 100%. Our PAT stands at 19.69 crores. If you look into our sales segment mix for this specific quarter, our trailer segment has contributed close to 49% of our revenue, while the component business contributed the balance 51%. If you look into the H1 highlights, the revenue total stands at 419.4 crores as compared to 270 crores of last year. EBITDA stands at 53.32 crores and PAT stands at 33.16 crores. For the half year, the investments in our capacity expansions and backward integration initiatives have started contributing to our operational readiness, and we expect our utilization levels to improve progressively over the coming coming two quarters. This should further support our margins as well. CapEx towards during the period has been directed mostly towards the seamless tube facility and other capacity enhancement initiatives. Overall, in quarter two and H1 FY '27 results reflect the early benefits of our strategic investments and improving the demand environment. We remain focused towards the profitable growth and operational efficiency to deliver sustainable value for all our stakeholders. We now open the floor for further queries. Thank you.
Moderator (Equirus Securities Private Limited): Thank you very much. We will now begin with 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 (Equirus Securities Private Limited): The first question is from the line of Anubhav Mukherjee from Pristine Capital. Please go ahead.
Anubhav Mukherjee (Pristine Capital): Hello, hope I'm audible?
Moderator (Equirus Securities Private Limited): Yes sir, you're audible.
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