Any current/future new fundraising through debt or equity?

Kross Limited plans an investment of approximately INR167 crores to enter seamless tube manufacturing at Adityapur Industrial Area, Jharkhand. This investment will be funded through a mixture of debt and internal accruals. No specific details on new equity fundraising were mentioned in the call. The company is progressing with capex financed partly from IPO proceeds but major upcoming capex, especially the seamless tube project, will involve debt. No explicit announcement of fresh equity issuance or other fund-raising measures was made during the earnings call.

Any current/future capex/capital investment/strategic investment?

Current capex as per IPO plans is approximately INR 70 crores, mainly for forging capabilities, new foundry lines, and machines to ramp up export production. Major upcoming capex is the seamless tube plant project in Adityapur Industrial Area, Jharkhand, valued at around INR 170 crores, starting Q4 FY25 with majority in FY26. The seamless tube project targets mid-FY27 completion, aiming for backward integration and cost savings (~3-4% cost reduction). Investment in an extrusion plant (arrival expected by early March) to increase trailer axle and suspension assembly capacity from 5,000 to

Future growth expectations in sales/revenue/volumes?

Targeting 15% export revenue contribution in the next 2-3 years, up from current ~5%. Expecting double-digit growth in exports driven by new product lines and export orders, fueled by the China Plus One strategy. Domestic trailer axle and suspension business volumes stable with ~7,500-8,000 axles per quarter; order book improving in Q4 and beyond. New extrusion plant launch expected to be a game changer, enabling higher tonnage axles and opening new markets. Expansion into new geographic regions and segments like car carriers and tag axles planned, supporting volume growth. Overall FY25 revenu

Future growth expectations in earnings/operating earnings/profits/EPS?

Kross Limited expects 15% export revenue contribution in the next 2-3 years, driving growth. With new product launches (18-ton axle, lower capacity suspensions, car carrier axle/suspension), a 15-20% growth is targeted next year. Expansion of extrusion plant and seamless tube facility (INR170 crore capex) will enhance margins and product offerings, starting production soon and completing seamless tube project by mid-FY27. Export margins are significantly higher, with EBITDA of 20-22% in export business vs domestic. Domestic volumes improving, with Q4 FY25 showing better OEM orders and

Current/ Expected Orderbook/ Pending Orders?

The order book for February is approximately 4,000 axles. In January, there was a noticeable growth in orders. The company is operating at around 80% capacity of its 5,000 monthly axle production capability. Demand in Q4 is strong, supported by a good order book and increasing inquiries. The trailer and suspension business has maintained market share and even grown in certain regions like Rajasthan. The company is expanding product offerings and geographic reach to fuel order growth. New product launches such as the 18-ton axle and car carrier suspension are expected to contribute to increased

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Kross LtdQ4 FY26Auto Components

Kross Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹188P/E: 22.1Market Cap: ₹1.2K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Targeting 15% export revenue contribution in the next 2-3 years, up from current ~5%.
→Expecting double-digit growth in exports driven by new product lines and export orders, fueled by the China Plus One strategy.
→Domestic trailer axle and suspension business volumes stable with ~7,500-8,000 axles per quarter; order book improving in Q4 and beyond.
→New extrusion plant launch expected to be a game changer, enabling higher tonnage axles and opening new markets.
→Expansion into new geographic regions and segments like car carriers and tag axles planned, supporting volume growth.
→Overall FY25 revenue expected to be flat to slightly better than previous year; FY26 growth dependent on commercial vehicle sector recovery.
→Focus on premium, higher-margin export and new product segments to drive volume and revenue growth beyond flat domestic market.

Margin guidance

Category 2

→Kross Limited expects 15% export revenue contribution in the next 2-3 years, driving growth.
→With new product launches (18-ton axle, lower capacity suspensions, car carrier axle/suspension), a 15-20% growth is targeted next year.
→Expansion of extrusion plant and seamless tube facility (INR170 crore capex) will enhance margins and product offerings, starting production soon and completing seamless tube project by mid-FY27.
→Export margins are significantly higher, with EBITDA of 20-22% in export business vs domestic.
→Domestic volumes improving, with Q4 FY25 showing better OEM orders and improved component demand, possibly better than previous year despite industry softness.
→EBITDA margin expected to improve beyond current 13.1%, driven by exports and operational efficiencies.
→Overall PAT margin has improved to 7.1% in 9M FY25 with 8.9% PAT growth; forward outlook likely positive.

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Fundraise plans

Yes

→Kross Limited plans an investment of approximately INR167 crores to enter seamless tube manufacturing at Adityapur Industrial Area, Jharkhand.
→This investment will be funded through a mixture of debt and internal accruals.
→No specific details on new equity fundraising were mentioned in the call.
→The company is progressing with capex financed partly from IPO proceeds but major upcoming capex, especially the seamless tube project, will involve debt.
→No explicit announcement of fresh equity issuance or other fund-raising measures was made during the earnings call.

Order book

Yes

→The order book for February is approximately 4,000 axles.
→In January, there was a noticeable growth in orders.
→The company is operating at around 80% capacity of its 5,000 monthly axle production capability.
→Demand in Q4 is strong, supported by a good order book and increasing inquiries.
→The trailer and suspension business has maintained market share and even grown in certain regions like Rajasthan.
→The company is expanding product offerings and geographic reach to fuel order growth.
→New product launches such as the 18-ton axle and car carrier suspension are expected to contribute to increased demand.
→With new product lines and expansions in place, the order book and volumes are expected to grow further in coming quarters.

Capex plans

Yes

→Current capex as per IPO plans is approximately INR 70 crores, mainly for forging capabilities, new foundry lines, and machines to ramp up export production.
→Major upcoming capex is the seamless tube plant project in Adityapur Industrial Area, Jharkhand, valued at around INR 170 crores, starting Q4 FY25 with majority in FY26.
→The seamless tube project targets mid-FY27 completion, aiming for backward integration and cost savings (~3-4% cost reduction).
→Investment in an extrusion plant (arrival expected by early March) to increase trailer axle and suspension assembly capacity from 5,000 to 7,500 units/month; this will enable entry into tag and dead axle segments.
→Strategic focus on expanding export business (targeting 15% revenue from exports in 2-3 years) with new alliances and product launches, supported by these capex projects.

How does Kross Ltd rank vs peers in Auto Components?

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