Kranti Industries Ltd (BSE: 542459) Q3 2026 Earnings Call dated Feb. 17, 2026
Corporate Participants:
Sachin Subhash Vora — Chairman & Managing Director
Sumit Subhash Vora — Executive Director
Analysts:
Abhijith Rao — Analyst
Himanshu Sharma — Analyst
Majid Ahmed — Analyst
Presentation:
operator
Ladies and gentlemen, good evening and welcome to Kranti Industries Limited Q3 and 9M FY26 earnings conference call we have with us today from the management Mr. Sachin Subhash Vora Promoter Chairman and Managing Director Mr. Sumit Subhash Vora Promoter and hold time Director Basampada Basavade Company Secretary and Compliance Officer As a reminder, all participant line will be in lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Do you need assistance during the conference call? Please signal an operator by pressing Star then zero on your touchstone phone. Before we proceed with this call I would like to take this opportunity to remind everyone about the disclaimer related to this conference call.
Today’s discussion may be forward looking in nature based on management’s current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what we may be expressed or implied by such forward looking statements. I now hand the conference over to Mr. Subitoara for his opening remarks. Thank you and over to you sir.
Sumit Subhash Vora — Executive Director
Thank you. Good evening everyone. I’m happy to welcome you all to the Q3 FY26 earnings call of the Kranti Industries Limited. We truly value this opportunity to engage directly with our shareholders, analysts and well wishers and I think you. Thank you all for joining us today. I trust you have already had the chance to go through our financial results, investor presentation and press release which are available on BSE website as well as on the company website. We will discuss our performance, momentum and strategic progress during the quarter. Few business highlights I would like to put on during the quarter we marked a significant strategic milestone with our formal entry into defense manufacturing segment.
We secured multiple purchase orders from Armed Vehicle Limited including mandates from its Machine Tool Prototype factory and Heavy Vehicles factory. The aggregate of these orders stands to approximately 204 lakh rupees. These orders involve precision machining of critical components and reflect our technical capabilities, process discipline and adherence to stringent quality standards required for defense applications. This development also represents an important diversification step for the company. Entry into defense manufacturing enhances our long term order visibility and strengthens our position in mission critical engineering programs. It also aligns with the government’s focus on indigenous indigenization and domestic defense production providing us access to a structurally grown segment with higher entry barriers with better margin potential.
Additionally, we also commissioned our new Plant 4 facility in JPUR. They’re commencing the commercial operations from January 1st, 2026. The 35160 square feet machining facility is equipped with advanced CNC infrastructure and scalable production capabilities. This expansion standard strengthens our manufacturing footprint, enhances operational flexibility and positions us to cater efficiently to increasing demand from the defense and industrial segments going forward. On the global trend front, recent tariff realignments and evolving discussions are reshaping the supplier. While direct exposure to tariff impacted geographics remain limited, these developments are encouraging global OEMs to diversify sourcing. Under the China plus one strategy, we are evaluating select export programs aligned with evolving trade landscapes.
India’s improving trade partnership and competitive manufacturing ecosystem position companies like Kranti favorably to capture incremental export opportunities. We continue to closely monitor trade dynamics and remain focused on leveraging any emerging opportunity in global precision engineering supply chains. I now hand the conference over to Mr. Sachin for an update on performance of Q3 and 9 months FY26. Thank you and thank you once again. Over to you, sir.
Sachin Subhash Vora — Chairman & Managing Director
Yeah. Good afternoon everyone. It is my pleasure to welcome all our valued shareholders, investors and analysts to the Q3 and 9 month FY26 earnings conference call. I sincerely appreciate your continued interest and the time you have taken us to join us today to give you industry overview. The Indian economy has sustained growth momentum despite global volatility with GDP growth remaining above 6% supported by strong domestic consumption, sustained infrastructure spending and stable inflation trends. The manufacturing sector remains a key growth driver benefiting from government initiatives such as make in India VLI schemes and increased capital expenditure across infrastructure and defense.
These structural measures are strengthening India’s position as a reliable and competitive global manufacturing hub. Within this environment, the automotive and precision engineering sector remains structurally positive. Domestic vehicle production is stable, export demand is gradually improving and capacity utilization levels are trending upwards. Additionally, the push towards the EV adoption, defense indigenization and global supply chain diversification under the China plus one framework continues to create a long term opportunities for quality focused precision component manufacturers. Demand for precision machine components remain supported by localization and platform operators. Those with strong execution capabilities, cost discipline and diversified sector exposure are well positioned to benefit from this evolving industry dynamics.
The Union Budget 2026 has further reinforced this momentum with continued emphasis on defense capital expenditure, infrastructure development, manufacturing incentives and support for our EV ecosystem. Increased allocation towards indigenous defense production and technology modernization directly benefits precision engineering company like Grant. This enhances medium term demand visibility for specialized machining players. The sustained focus on domestic manufacturing competitiveness, supply chain localization and MSME supports creates a favorable operating environment enhancing long term demand visibility across automotive, defense and industry segment. Now we go to the Q3 FY26 standalone financial performance during Q3 of FY26 we delivered a strong performance with a total revenue of 22.87 crores reflecting a robot 32.2% year on year growth and a sequential growth of 5.8% over Q2.
This growth was driven by improved execution across our core automotive and industrial segment along with early traction from newly diversified verticals. The steady increase in revenue demonstrate the resilience for our business model and strengthening demand visibility across customer categories. On the profitability front, EBITDA for the quarter stood to rupees 3.55 crores nearly three times higher compared to the same period last year with the margins placed at around 15.5%. Our profit before depreciation and tax I.e. pBTD stood at 2.96 crores reflecting strong operating performance and improved cost absorption. Margins remained healthy despite expansion related ramp up cost.
The overall profitability trajectory remains structurally positive. At the bottom line level our BAT stood to around 74 lakhs marking a clear continuation for our profitability recovery compared to the loss reported in Q3 in the previous year. Strengthening Earnings Visibility into Q4 the improvement in earnings underscores the impact of operational efficiencies, better capacity utilizations and disciplined financial management. Overall Q3 FY26 reflects sustained revenue growth combined with strengthening profitability positioning us well for the remainder of the financial year. 9 month FY26 standalone financial performance for the 9 month period ended FY26. Our total revenue stood at 64.57 crores reflecting a strong growth of 19.8% compared to the same period last year.
This consistent revenue expansion across quarters demonstrate the stability of demand across our core segments and the benefits of our diversified customer base. The growth also reflects improved execution capabilities and gradual scaling of newly added capacities. EBITDA for 9 month FY26 stood at 10.78 crores nearly doubling compared to 5.39 crores in the corresponding period last year. EBITDA margins expanded significantly to 16.7% which is an improvement of 669 basis points over year on year. This reflects clear operating leverage as revenue scales. Ppdt stood at 9.02 crores reflecting a 2.6x growth over last year. This margin expansion has been driven by operating leverage, better product mix, cost optimization initiatives and improved capacity utilization across plants.
Profit after tax for the nine month period stood at 2.7 crores compared to the loss in the previous year, clearly indicating a structural turnaround in earnings. This reinforces the sustainability of our earnings recovery. The sustained improvement across revenue, operating profitability and bottom line performance reinforces the strength of our execution framework. We believe this consistent performance over nine months provides strong visibility and confidence as we move into the final quarter of this financial year. Looking ahead While we remain mindful for global macroeconomic uncertainties and evolving trade dynamics, the domestic manufacturing outlook continues to remain constructive. The momentum in defense indigenization, infrastructure spending and industrial activity provides structural growth visibility.
Our diversified presence across automotive, ev, industrial and now defense segment positions us well to benefit from this emerging opportunities while reducing cyclist cyclicity. The risk. Our immediate focus will be stabilizing and scaling operations for our newly commissioned Plant 4 facility. Improving the capacity utilization levels at Plant 4. We will continue to monitor and optimize out our investment in automation, process optimization and smart manufacturing practices to enhance productivity and quality standards. At the same time, we aim to strengthen customer relationship, expand export contribution and gradually increase our participation in mission critical and value added programs. Financial discipline remains central to our strategy.
We will maintain a balanced approach towards growth and capital allocation, ensuring that expansion is supported by sustainable cash flows and prudent leverage management. We remain focused on maintaining prudent leverage and healthy cash flows. Our focus continues to be on margin stability, working capital efficiency and long term value creation for our stakeholders. With a stronger operational foundation and expanding sectoral footprint, we are confident about building a resilient and scalable growth platform for the years ahead. Thank you and I look forward for our discussion during the question and answer session.
operator
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press Star and one Again. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, if you have any questions please press star and one on a telephone keypad. The first question is from Mr. Abhijit Rao from BP Capital. Please go ahead, sir.
Abhijith Rao — Analyst
Hello. Thank you for the opportunity. First of all, congratulations on the good set of numbers, sir. So.
Sachin Subhash Vora — Chairman & Managing Director
Thank you.
Abhijith Rao — Analyst
My question is. My question is on the defense order. Different dependent defense order. So what is the revenue potential from the from defense this order by next financial year FY27 and how much share of the business is repetitive versus one time qualification order? Also the margin profile of this. Oh yes. Also the margin profile of this.
Sachin Subhash Vora — Chairman & Managing Director
Yeah. For the defense segments. We were. We were targeting this segment from last more than 12, 14, 15 months. I will be more precise. We have participated in various tenders and various segment fortunately in this last quarter we received around 24 orders these are all small sample development orders which we will which are under process Few samples are submitted fuse are under development so we that current order value what we have got is around to close to around 2 crores which will be executed in next 3 to 4 months in addition to this there are another few more tenders where we have participated the technical round of discussion the plant visits of the team is going on so we are anticipating more orders inflows to come in next 3, 4 months if you go for FY27 yeah, we are taking target of at least around 12 to 15 crore business from defense segment maybe in orders and execution that phase so that is the target what internally we are taken we have already targeted penetrated into two companies for the different manufacturing or factories and few sales companies the visits technical evaluation discussions are going on.
Abhijith Rao — Analyst
Okay, I understand Profile Ah yeah
Sachin Subhash Vora — Chairman & Managing Director
Yeah. Margin profile more or less it is definitely better than what we are doing for the automotive or segment but it’s too early to right now say because the few things like the development cost, initial product development, that testing validation maybe the cost are high so till we don’t execute few orders and few business margin profile definitely it is higher but how to how much it will be leveraging other cost that we have to evaluate.
Abhijith Rao — Analyst
Understood sir. Now moving on to this Standalone gross profit has grown like 56.3% year on year in quarter three which is much faster than the as compared to the revenue and so what what favorable mix and efficiency strategies that update and how sustainable is this?
Sachin Subhash Vora — Chairman & Managing Director
Regarding what profitability? Yes, two basic point what we trusting is we have improved our EBITDA margin There are two major factors in the One is the capacity utilization the more of the capacity utilization increases the our fixed cost fixed overhead gets divided accordingly and this increases in addition to do we have done some process optimization, process improvement, some cost control measures it is the ongoing continuous process on the shop floor also so these things, these initiatives are taken and we were working on this from last 1824 months and slowly we are now we are able to get some good results and we are hopefully to maintained to this level Means at a consolidated at a optimized level we will be somewhere we will be stabilizing at an EBITDA level of around 16, 17, 18 that is what we are targeting and we will be reaching to that EBITDA level.
Abhijith Rao — Analyst
Okay, okay, understood. Thank you sir and all the best.
Sachin Subhash Vora — Chairman & Managing Director
Thank you.
operator
Thank you sir. Ladies and gentlemen, if you have any questions please press star and one on your telephone keypad. I repeat if you have any questions please press star and one on your telephone keypad. Next questions is from the line of Mr. Himanshu Sharma, an individual investor. Please go ahead.
Himanshu Sharma — Analyst
Thank you for giving me this opportunity. Sir, I have a two question. First question is.
Sumit Subhash Vora — Executive Director
Sorry to interrupt you. I think so we are getting echo from your side. Can you be bit closer to the mic?
Himanshu Sharma — Analyst
The question is plant at store. Jagur has commenced the operation from first January 26th. So what is the design revenue capacity of this plant and at what utilization do you hit Plant level I beta break even and target roc. And second question. Can you quantify the fixed cost setup setup of the plan in terms of rent people and utility.
Sumit Subhash Vora — Executive Director
Okay. Commencement. I. I’ll answer this question and then I’ll hand out to Sachin for balance answer. So I’ll explain you. This is if you. If you have gone through the news of KI we had and this is. This will be basically not completely not a greenfield project. This is a brownfield project. So we have taken over and complete machining business from Universal Auto foundry under the MoU and entire their machine shop will be. Which is. Which was from Universal has been taken over by Kranti and now it is planned for from 1st of January 2026. So operationally now we are stabilizing this operations and capacity wise we should be somewhere about reaching by April at around 70 to 80 utilization of the complete installed current capacity.
Okay that’s. That’s good of good enough to answer on the capacity side. Sachin can you take forward from here?
Sachin Subhash Vora — Chairman & Managing Director
Yeah. See the plan for operational is already commenced. The operations are because the existing existing machineries machines which were the installed in their plant are taken over by kti. So the operations has been started capex. Capex. So that. That. That there will be doing the compone for that single customer only. So we’ll be there there as good as subcontractors or vendors for them and well your point was towards the margins. I will definitely it will be in a more. More or less in the same range what we are doing over there there’s within 16 to 18 EBITDA what we are targeting.
Sumit Subhash Vora — Executive Director
ROC was. ROC as you asked is.
Sachin Subhash Vora — Chairman & Managing Director
Yeah.
Sumit Subhash Vora — Executive Director
Currently we haven’t done any capital investment over there.
Sachin Subhash Vora — Chairman & Managing Director
Yeah currently the capital investment in that plant is only the installation, commissioning and preliminary expenses which are required for license. So ROC will not be calculated on plant basis. It will Be on the balance sheet side which will be the full plan they will be working out on that so our capital investment there is only working capital and marginal capex related to preliminary expenses and installation commissioning of machineries. Yeah.
operator
Thank you sir. Ladies and gentlemen if you have any questions please press star and one on a telephone keypad. I repeat if you have any questions please press star and one on a telephone keypad the next question is from the line of Majid Ahmed from Pinpoint X Capital Please go ahead sir.
Majid Ahmed — Analyst
I’m audible sir.
Sachin Subhash Vora — Chairman & Managing Director
Yeah. Yes. Yeah.
operator
Yes sir.
Majid Ahmed — Analyst
Sir, just want to understand, you know we are having defense of 15 crores and any plans to get into any aerospace for any precision engineering that segment of this planet.
Sumit Subhash Vora — Executive Director
Yeah, we are. We are working on those projects as well but as of now nothing we have come out to of something in fact we have also completed audit for HAL There are vendor registration audit so we are in process of that but currently as of now the thing is concluded so hence we are not commenting so if you see depends also we started working around 1415 months back so somehow somewhere we have started so these are some long term process which we are working upon but currently we should not comment anything on this because since we don’t have any final outcome of it we are working on the two.
Majid Ahmed — Analyst
Year so going forward how are you looking to deleverage the balance sheet? We are having around 45 crores of debt and our cash flow is also not non linear so how are you going to manage your cash flows, working capital and reduce debt? Like what’s the strategy?
Sachin Subhash Vora — Chairman & Managing Director
Yeah so the leveraging the balance sheet is a tricky part in our business since our business is itself is a heavy capex driven business but we what we are targeting is we will be. We will be balancing balancing out our debt debt and equity structure so maybe by. We are targeting that by at least by 2030 or something onward so we should be virtual or what we call this net debt free company so working on towards that with our new business opportunities, increased capitalization we hopefully that in coming maybe six to eight quarters the ratios then will be improving drastically what we are currently on the balance sheet side not on PPN the balance sheet side the ratios will be improving drastically maybe in next six to eight quarters.
Majid Ahmed — Analyst
So before the improvement in the in the coming six to eight quarters are we looking for additional fundraise or any. Borrowings Are we looking to for expansion
Sumit Subhash Vora — Executive Director
Borrowing? Right now it is not there the working capital the only the working capital funds may be a marginal working capital where funds we may add it with our existing financial bankers only. This is what we may require. Yeah, definitely. Capex we are, we are right now in better situation where we have a good the amount of Capex installed with the machines of that Jaipur plant coming into our pocket. That’s the reason we went in that model where we become a Capex light. We have. We have added 45 machines which are directly taken on leads from them to make it same in with the idea to leverage and reduce down our capital cost with that.
So no, right now we are not planning anything but maybe six months. It depends what how the border decides and things how we move forward. But no next 2, 3/4 at least no any fundraising plan.
Majid Ahmed — Analyst
Also I want to also understand especially in a defense part also how are you looking to scale up and what is our you know the right to win to exponentially scale this business in. Two to three years. Like how are we positioning ourselves as a company?
Sachin Subhash Vora — Chairman & Managing Director
So yeah.
Sumit Subhash Vora — Executive Director
See we are. We are in the way of scaling up. So if you say last for 25 to 26, we will be. We are right now we are growing at a rate of around 20%. We expect that is next at least two years the same ratio will be continuing. So that is pulling up by the addition of new business also new products also as well as setting up a new plant and addition to the capacity also. So at least next two years we have that visibility that at the same rate what we have grown from 25 to 26 will be growing to in 26 to 27 and 28.
That is what we are targeting and we are all pretty much confident we will be on that track. Maybe plus or minus margin performance. Yes.
Majid Ahmed — Analyst
So finally I just want to understand as of your presentation you have mentioned of the segmental revenue majority agreeing from tractor business. Do you see any kind of technicality or anything? Sir? Like how do you see this in terms of margin pressures? Anything?
Sumit Subhash Vora — Executive Director
No. See tractor industry is in a growing industry and this will remain as a growing industry for next two years. And if you. If you have gone through the other this industry domestic as well as export market for next two to three years with the need of basic. Basic since food is one of the basics necessity. Secondly, farm farming automation is one thing which is which currently India lags far behind than as compared to any any European and US farm sectors. So this is one area where we feel that this is again where this industry is going to grow at least at two digits for next year and around 8, 8 to 9% again next to next year.
That is what is the prediction says. Secondly, even if we are in a tractor industry, if you see the split of our tractor industry we are into multiple customers and multiple product zones. So now we are into lower HP tractors with higher HP and also in medium nature. So these combination help us to diversify our product range within that one segment as well. And then with agriculture now we have also started concentrating on agri implements like harvesters and balers and which are part of agri implements which is growing market further again. So this, these are industry which are always going to grow for next two to three years without any variation.
operator
Thank you sir. Ladies and gentlemen, if you have any questions please press star and one on a telephone keypad. I repeat, if you have any questions please press star and one on a telephone keypad. I believe there are no more questions. I hand over the floor to the management for the closing remarks.
Sachin Subhash Vora — Chairman & Managing Director
Yeah. Thank you. I would like to extend my sincere gratitude to our board of directors for the guidance, our employees for the dedication, our customers for the trust and our shareholders for their unwavering support. We remain committed to consistent execution and transparent communication. Thank you very much for all of you for joining this call.
operator
Thank you very much. Thank you.
Sachin Subhash Vora — Chairman & Managing Director
Thank you.
operator
Thank you, sir. On behalf of Karanthi Industries Ltd. We would like to formally conclude this Q3FY26 earnings conference call. We sincerely appreciate your participation in this event and we kindly request that you now disconnect your lines. Thank you for your time and engagement.
Sachin Subhash Vora — Chairman & Managing Director
Thank you.