Kross hits record Q1 revenue, but production targets slip
Revenue rose 32% to ₹185 crore, but tipping jack output reached only ~200 kits against a 300-unit target. Rear axle shaft supply milestone moderated. Management guides 40-45% export growth for FY27.
What's new
- Record Q1 revenue of ₹185 crore, up 32% YoY; EBITDA margin at 12.2%
- Tipping jack production fell short of 300-unit target, achieving only ~200 kits
- Rear axle shaft facility commissioning on track for Sep 2026, but supply timeline moderated
Why this matters
Kross posted strong top-line growth and a 12.2% margin, but the miss on tipping jack production and the moderated axle shaft milestone signal execution headwinds on key growth projects. The ambitious export growth guidance of 40-45% for FY27 will test whether the company can deliver on its promises.
What we're watching
- Whether tipping jack production ramps up to targeted levels in Q2
- Progress on the rear axle shaft facility towards Sep 2026 commissioning
- Export revenue share progress towards 8% in two years
The full read
Kross reported its best-ever Q1 revenue of ₹185 crore, up 32% year-on-year, with an EBITDA margin of 12.2%. But management acknowledged two key misses: tipping jack production of ~200 kits fell well short of the 300-unit target, and the rear axle shaft supply milestone was moderated, though commissioning remains on track for September 2026. The company guided for 40-45% export growth in FY27 and expects the Parivartan scheme and a recovering CV cycle to support demand. The record revenue is solid, but the near-term execution gaps temper the story. Capacity expansion projects remain on schedule, but the confidence around them now carries more weight.
Questions answered
- Why did tipping jack production fall short of the 300-unit target?
- Management attributed the shortfall to validation requirements for the highly engineered product, with actual output at around 200 kits in Q1.
- What was the rear axle shaft milestone change?
- Commissioning of the rear axle shaft facility remains on track for September 2026, but management did not confirm supply readiness — a moderation from prior guidance.
- How does the export growth guidance look?
- Kross guided for 40-45% export growth in FY27, aiming for at least 8% of revenue from exports within two years.
- Are capacity expansion projects on schedule?
- Yes, the seamless tube plant and high-pressure foundry line remain on schedule.