Kranti Industries Powers Ahead: Q2 & H1 FY26 Performance and Strategic Growth

Kranti Industries Limited, a leading precision engineering and machining solutions firm, has announced its unaudited standalone financial results for the second quarter and first half of the financial year 2026, showcasing a period of robust growth and significant improvements in profitability. The company's performance highlights its disciplined execution, operational efficiency, and unwavering commitment to delivering high-quality engineering solutions across diverse mobility ecosystems.

For Q2 FY26, Kranti Industries reported a standalone revenue of ₹21.62 crore, marking a 7.7% quarter-on-quarter (QoQ) increase and a substantial 20.3% year-on-year (YoY) growth. The positive trajectory continued into the half-yearly results, with H1 FY26 revenue reaching ₹41.70 crore, a solid 13.9% YoY increase. Gross profit for Q2 FY26 surged to ₹10.21 crore, up 16.0% QoQ and 26.3% YoY, with gross margin expanding to 47.2%. The company's EBITDA for Q2 FY26 was ₹4.05 crore, reflecting a 27.0% QoQ and an impressive 85.5% YoY growth, with EBITDA margins strengthening to 18.7%. Profit After Tax (PAT) for Q2 FY26 stood at ₹1.30 crore, a remarkable 95.0% QoQ increase and a 3,778% YoY jump, demonstrating a strong turnaround from a low base. For H1 FY26, PAT reached ₹1.97 crore, compared to a loss of ₹0.04 crore in H1 FY25.

Financial Summary

Strategic Growth and Diversification

Kranti Industries is actively pursuing a multi-pronged strategy for sustained growth and diversification. The company recently signed a Memorandum of Understanding (MoU) with Universal Autofoundry Limited (UFL) for a long-term machining alliance in Rajasthan. This partnership, commencing in January 2026 for a seven-year term, focuses on integrated manufacturing for the automotive and engineering sectors. This collaboration is expected to significantly strengthen Kranti's geographic expansion, operational efficiency, and overall value creation, with an estimated revenue contribution of ₹4 crore to ₹4.5 crore in Q4 FY26 and ₹20 crore to ₹22 crore in the next financial year from the Jaipur facility.

Further bolstering its international presence, Kranti Industries secured a new purchase order from Ingersoll-Rand Industrial U.S., Inc. for tooling parts for housing components, valued at approximately $221,000. An additional order for 10 different housing components has an annual business potential of approximately$438,600. Domestically, the company received clearance to commence series production of EV components for Eka Mobility's 3W commercial vehicles, with a total business potential of approximately ₹2.00 crore. These initiatives underscore Kranti's commitment to innovation and its expanding footprint in the clean mobility space.

Expanding Product Portfolio and Market Reach

Kranti Industries is strategically expanding its product portfolio and market reach. The company has successfully entered the high-value, heavy-duty gearbox market with a sample supply to Bonfiglioli Transmission Pvt. Ltd. Bonfiglioli has granted “First Time Right” clearance for Kranti's heavy-duty gearbox housings, enabling full-scale production of a ₹6.84 crore annual order. This achievement not only affirms the company's quality standards but also its capability to deliver high-performance components at scale, diversifying its offerings into advanced mechanical solutions.

In new part development, Kranti is developing housing for heavy industrial machines for Bonfiglioli, with a potential annual revenue of ₹14.65 crore. Sample submissions are planned for July 2025, marking a significant step into manufacturing critical industrial components. Additionally, the company has been entrusted by CNH Industrial (India) Pvt. Ltd. to design and supply a hub extractor fan for the agri-implements sector, a project valued at ₹1.57 crore annually, including tooling. These developments strengthen Kranti's position in the growing agricultural equipment space and broaden its product portfolio.

Outlook and Commitment

Management remains focused on enhancing efficiency, reducing costs, and strengthening operational discipline. The company's strong order pipeline reflects the resilience of its business model and the confidence placed by domestic and global OEMs. Kranti Industries plans to continue investing in technology, upgrading smart infrastructure, and increasing automation to improve quality and working capital efficiency. The company aims for at least double-digit revenue growth year-on-year for the next three years and targets to become a net debt-free company by 2030-2032. These milestones reaffirm Kranti Industries' commitment to innovation, growth, and excellence in serving its valued customers and creating long-term value for shareholders.