KRISHNADEF - Krishna Defence

📊 NSE: KRISHNADEF 🏢 Diversified - Medium / Small 📅 Last Updated: 12/14/2025 9:03

💰 Financial Performance

Revenue Growth by Segment

Defence segment revenue grew 102.4% YoY from INR 91.8 Cr in FY24 to INR 185.8 Cr in FY25. Dairy segment revenue decreased 38.4% YoY from INR 14.6 Cr in FY24 to INR 9.0 Cr in FY25. For H1FY26, Defence revenue reached INR 111.1 Cr and Dairy reached INR 9.3 Cr.

Geographic Revenue Split

Not disclosed in available documents, though manufacturing facilities are located in Kalol and Halol, Gujarat, with headquarters in Mumbai.

Profitability Margins

Standalone PAT margin improved from 9.20% in FY24 to 11.25% in FY25. Consolidated net profit margin reached 15.3% in H1FY26, up 383 bps YoY from 11.4% in H1FY25.

EBITDA Margin

EBITDA margin was 15.6% in FY25, up from 14.5% in FY24. In H1FY26, EBITDA margin surged to 17.9%, a 291 bps YoY improvement driven by operational leverage and yield efficiencies.

Capital Expenditure

Fixed assets increased from approximately INR 11 Cr to INR 22 Cr over the past two years. Capacity expansion is ongoing as of November 2025 to support scaling operations.

Credit Rating & Borrowing

Credit rating upgraded to 'CRISIL BBB/Stable/CRISIL A3+' from 'CRISIL BBB-/Stable/CRISIL A3'. Interest coverage ratio is robust at 21.72 times in FY25, up from 9.92 times in FY24.

⚙️ Operational Drivers

Raw Materials

Special steel and shipbuilding steel sections (bulb bars) represent the primary raw materials. COGS accounted for 62.2% of total revenue in FY25 (INR 121.22 Cr) compared to 59% in FY24.

Capacity Expansion

Fixed assets doubled to INR 22 Cr to support revenue growth. Management indicated capacity expansion is still undergoing 'high patients' (refinement) as of H1FY26.

Raw Material Costs

Raw material costs (COGS) were INR 121.22 Cr in FY25, an 83.1% increase YoY in line with revenue growth. Procurement strategies focus on stable profitability during contract bidding.

Manufacturing Efficiency

Efficiency gains and improved product yields from larger production volumes contributed to the 291 bps EBITDA margin expansion in H1FY26.

📈 Strategic Growth

Expected Growth Rate

28.10%

Growth Strategy

Growth is driven by operational leverage as fixed costs are divided over larger quantities, product yield improvements, and a strong order book of INR 196 Cr as of March 2026. The company is also benefiting from indigenization efforts in the defense sector.

Products & Services

Special steel shipbuilding sections (bulb bars) for warship hull construction and dairy equipment.

Brand Portfolio

Krishna Defence & Allied Industries Limited.

New Products/Services

Continued product additions in the defense segment contributed to the 83.1% revenue growth in FY25.

Market Expansion

Plans include diversifying market presence in both domestic and overseas markets to reduce dependence on specific regions.

Market Share & Ranking

Not disclosed, but the company operates in a niche segment with fewer players offering similar specialized products.

Strategic Alliances

Associate company Waveoptix Defence Solution Pvt Ltd contributed INR 2.76 Cr to consolidated profit in H1FY26.

🌍 External Factors

Industry Trends

The defense industry is evolving toward indigenization (Make in India), with KRISHNADEF positioned as a niche provider of specialized steel sections for warships.