Auto Ancillary Stock Hits 20% Upper Circuit After Reporting 142% Net Profit Growth in Q2
The share of the company, which is an Indian manufacturer of safety-critical forged and precision-machined automotive components, trailer axles, and suspension assemblies, came into focus after strong Q2 results.
With a market capitalization of Rs 2,003 crore, Kross Ltd’s share on Monday made a day high of Rs 326.80 per share, up by 20 percent, hitting the upper circuit from its previous close of Rs 272.35 per share. The stock of the company gave a return of 67.5 percent over the last year.
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Q2 Result Overview
QoQ View : Revenue grew to Rs 235.1 crore in Q2 FY27 from Rs 184.3 crore in Q1 FY27, registering a 27.5 percent growth QoQ. EBITDA rose to Rs 30.6 crore in Q2 FY27 from Rs 22.6 crore in Q1 FY27, up 35.7 percent QoQ, with EBITDA margin expanding 78 bps to 13.0 percent from 12.2 percent.
Net profit increased to Rs 19.7 crore from Rs 13.3 crore, up 47.9 percent QoQ, with PAT margin expanding 115 bps to 8.4 percent from 7.2 percent. EPS stood at Rs 3.08 in Q2 FY27, up 47.9 percent from Rs 2.06 in Q1 FY27.
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YoY View : Revenue grew to Rs 235.1 crore in Q2 FY27 from Rs 130.9 crore in Q2 FY26, registering a 79.6 percent growth YoY. EBITDA rose to Rs 30.6 crore in Q2 FY27 from Rs 14.8 crore in Q2 FY26, up 107.4 percent YoY, with EBITDA margin expanding 175 bps to 13.0 percent from 11.3 percent.
Net profit increased to Rs 19.7 crore from Rs 8.1 crore, up 143.5 percent YoY, with PAT margin expanding 220 bps to 8.4 percent from 6.2 percent. EPS stood at Rs 3.08 in Q2 FY27, up 146.4 percent from Rs 1.25 in Q2 FY26.
Revenue and Product Mix : In Q2 FY27, trailer axles and suspensions contributed 49.31 percent of revenue, while commercial vehicle components accounted for 37.19 percent. Tractor components contributed 8.38 percent, followed by exports at 3.21 percent and tipping jacks at 1.92 percent. The product mix highlights the company's strong presence in trailer axles, suspension assemblies, and commercial vehicle components.
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Segment Contribution Trend : Trailer axles and suspension assemblies contributed 50.69 percent of revenue in Q2 FY26, increasing to 56.42 percent in Q1 FY27. The Q2 FY27 data also reports a 59.34 percent contribution for this segment, which requires verification against the separately reported product-wise revenue share of 49.31 percent. This distinction is important when assessing changes in the company's revenue mix.
Marquee Clients : Kross Limited serves leading automotive, commercial vehicle, tractor and industrial companies, including Tata Motors, Ashok Leyland, Tata International, Meritor/Automotive Axles Limited, LEAX, TAFE, Dana, Eaton, Sonalika International, Wheels India, DLT Private Limited and VST CoreB. In Q2 FY27, the top five customers accounted for 35.79 percent of revenue, while other customers contributed 64.21 percent, indicating a relatively diversified customer base.
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Q2 Operational Highlight
Kross Limited reported an improvement in profitability in Q2 FY27, with its EBITDA margin expanding by 175 basis points to 13.0 percent from 11.3 percent in Q2 FY26. Operational efficiency and backward integration supported margins despite input cost pressures, while strong demand across the medium and heavy commercial vehicle (M&HCV) and trailer segments contributed to broad-based growth.
The company also benefited from a continued recovery in the tractor and agricultural segments. On the operational front, commercial production has commenced at its axle beam extrusion plant, which is currently operating at approximately 60 to 65 percent capacity utilisation. The company expects further volume scale-up in precision hydraulic tipping jacks in H2 FY27, supporting its efforts to expand production and strengthen its product portfolio.
Kross Limited is advancing several capacity expansion initiatives to meet future demand and improve cost competitiveness. Mills have been installed at its seamless tube facility, with production trials targeted for February to March 2027.
Meanwhile, the forging capacity expansion and high-pressure moulding line, which aims to double existing casting capacity, are progressing as planned. Investments in robotic forging and specialised machining are also expected to strengthen manufacturing capabilities.
About the Company
Kross Limited, incorporated in 1991, is a Jamshedpur-based manufacturer of forged and precision-machined automotive components. Its product portfolio includes trailer axles, suspension assemblies, transmission components, rear axle assemblies, and tractor parts, serving commercial vehicle, trailer, and agricultural equipment manufacturers.