💰 Financial Performance

Revenue Growth by Segment

Total revenue was INR 620.41 Cr in FY25, showing a flat growth of 0.02% YoY compared to INR 620.25 Cr in FY24. Historical growth was 26.9% in FY24 and 63.8% in FY23. Segments include Commercial Vehicles and Tractors, though specific percentage splits are not disclosed.

Geographic Revenue Split

Currently 100% domestic (India) with operations centered in Jamshedpur. The company is expanding into Europe and the US, with samples already dispatched to Tier 1 OEMs and approval expected in Q3 FY26.

Profitability Margins

Net Profit Margin improved to 7.99% in FY25 (INR 49.56 Cr) from 7.23% in FY24 (INR 44.88 Cr). Gross margin is approximately 43.2% based on material costs of 56.8% of revenue in FY25.

EBITDA Margin

EBITDA margin was 13.08% in FY24 (INR 81.21 Cr), showing a steady upward trend from 11.83% in FY23 and 10.16% in FY22.

Capital Expenditure

Planned investment of INR 167 Cr for a new seamless tube manufacturing facility. Historical PPE additions for FY25 were INR 27.27 Cr.

Credit Rating & Borrowing

CARE Ratings for Long-term and Short-term facilities were withdrawn in December 2025 as the company surrendered these facilities after repaying outstanding debt using IPO proceeds. The company used a 10% incremental borrowing rate for lease liabilities.

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material for forging and axle manufacturing. Raw material costs (Cost of Materials Consumed) represented 56.8% of total revenue in FY25 (INR 352.34 Cr).

Capacity Expansion

Currently operates 3 manufacturing plants in Jamshedpur. Planned expansion includes a seamless tube manufacturing facility (INR 167 Cr investment) and axle beam extrusion capabilities to enter the TAG axle product category.

Raw Material Costs

Raw material costs were INR 352.34 Cr in FY25, a 6.9% decrease from INR 378.68 Cr in FY24, improving the material cost-to-revenue ratio from 61.0% to 56.8%.

Manufacturing Efficiency

Management aims to improve profitability through constant cost optimization and increasing capacity utilization, though specific utilization percentages are not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the commissioning of the INR 167 Cr seamless tube plant, further backward integration via axle beam extrusion, and geographic expansion into Europe and the US markets by securing approvals from Tier 1 OEMs.

Products & Services

Axle shafts, coupling flanges, tractor parts, trailer axles, trailer components, and planned TAG axles.

Brand Portfolio

KROSS

New Products/Services

Seamless tubes and TAG axles are the primary new product focuses, intended to deepen backward integration and expand the product portfolio.

Market Expansion

Targeting Tier 1 OEMs in Europe and the US; final supplier approval for these regions is expected in Q3 FY26.

🌍 External Factors

Industry Trends

The auto component industry is shifting toward electrification and premium suspension/braking models. Kross is positioning itself through backward integration and new product facilities to remain competitive.

Competitive Landscape

Operates in the competitive auto-component and forging sector; key competitors are not specifically named.

Competitive Moat

Durable advantage through backward integration (forging to finishing) and strategic location in Jamshedpur (an automotive hub), which reduces logistics costs and lead times for major OEMs.

Macro Economic Sensitivity

High sensitivity to the Commercial Vehicle cycle and government fiscal policies, specifically GST rate changes which can shift consumer demand timing.

Consumer Behavior

Customers exhibit high sensitivity to tax policy rumors, as seen in the postponement of purchases in August and September 2025 due to anticipated GST cuts.

Geopolitical Risks

Expansion into US and European markets introduces exposure to international trade regulations and potential tariff barriers.

⚖️ Regulatory & Governance

Industry Regulations

Subject to automotive manufacturing standards and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Taxation Policy Impact

Effective tax rate was approximately 26.6% in FY25, with INR 17.83 Cr total tax expense on INR 67.39 Cr PBT.

Legal Contingencies

No material fraud or significant pending court cases were reported in the FY25 auditor's report.

⚠️ Risk Analysis

Key Uncertainties

Execution risk associated with the INR 167 Cr seamless tube facility and the inherent cyclicality of the domestic CV and tractor markets.

Geographic Concentration Risk

Manufacturing is 100% concentrated in Jamshedpur, Jharkhand, making the company sensitive to regional industrial policies or disruptions.

Technology Obsolescence Risk

Potential risk from the long-term industry shift toward Electric Vehicles (EVs), which may alter requirements for traditional drivetrain and axle components.

Credit & Counterparty Risk

Credit exposure is primarily through trade receivables of INR 182.74 Cr from automotive OEMs.