KROSS Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹177.5 Cr
verification pending
Revenue YoY
18.1%
reported change
EBITDA
₹23.5 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Kross Ltd delivered a strong Q3 FY26 with revenue of 177.5 crore (+18.1% YoY), driven by a recovery in the M&HCV segment—first growth in seven quarters—and robust performance in tractor components (+29% YoY). EBITDA grew 18.9% to 23.5 crore with 13.2% margin, though this represents contraction versus the 15% historical levels due to elevated other expenses from new product trials and capacity ramp-up. The sequential revenue jump of 37% QoQ signals accelerating demand. Key catalysts include the commissioning of the axle beam extrusion plant (February 2026, adding 50% capacity), new tipping jack product launch (validation phase, targeting 45-50 crore revenue in FY27), and growing export contribution (targeting 5% in FY26, double-digit by FY28). Management targets Q4 margins of 14-15% as new products scale. Risk: rising steel prices from December may compress margins if OEM compensation lags, and the tipping jack is still pre-revenue with validation ongoing.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects margin recovery to 14-15% in Q4 FY26 as new product lines (tipping jack, extruded axle, export components) scale and one-time trial costs normalize.
- With 300-350 kits/month average and realization value of 1.2-1.3 lakh per kit, management projects 45-50 crore revenue in FY27, ramping to full 800 units/month capacity within a year.
- 9-month FY26 exports at 4% of revenue (+14% YoY); existing customer volume ramp and new tier-one approvals expected to drive 5% full-year target and double-digit contribution by FY28.
- Currently ~11% revenue from tractors; management aims to reach 15-16% contribution within 18 months through new customer additions and content expansion with existing OEMs.
Risks flagged
- Steel prices started increasing from December 2025, and while OEMs are expected to compensate, there may be a 1-2 quarter lag. With 30-35 days raw material inventory, the company holds some buffer but faces margin risk if price hikes exceed compensation.
- The tipping jack is still in validation with only 35-40 assemblies dispatched; full commercial revenue delayed to FY27. Management acknowledged margins cannot be predicted at current low volumes. OEM validation (for 1.5+ years) remains a hurdle.
- Other expenses as percentage of sales increased to 26.5% from 24.5% in Q3 FY25, with Q2 at 28%. Management attributed this to tooling, consumables, and freight for new projects not yet reflected in revenue. Analyst raised concern about 35% expense growth over FY22-25 exceeding topline growth—management provided no specific cost reduction timeline.
- Management explicitly stated they will not charge a premium for extruded axles initially to ensure market acceptance, targeting 35% market share (vs current 26-28%) before pricing power. This delays margin upside from the new 7,500 beam capacity.
Key quotes
- For the first time in seven quarters, the company witnessed growth in the M&HCV segment. The segment has remained subdued over the past seven quarters. However, from October 25 onwards, both EOEM Starter Motors and Ashok Leyland have reported sharp increase in production volumes.
- We are looking at this contributing to our top line in the next two years a hefty amount and margins should be calculated looking at that not what we are doing currently.
- Within the component business in the CV components in quarter 2, we had done a revenue of approximately 48 crores and in quarter 3 we've got that revenue to 82 crores. That's a jump of approximately 70%.
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