Krishna Defence Q2 profit doubles as receivables and cash diverge

Krishna Defence and Allied Industries Limited reported standalone profit of Rs 15.12 crore for the quarter ended 30 September 2026, up 120.4% from Rs 6.86 crore a year earlier, as revenue reached Rs 75.29 crore. Krishna Defence’s trade receivables rose to Rs 88.86 crore, while net operating cash flow for the half year was negative Rs 5.16 crore.

How much did Krishna Defence’s Q2 profit and revenue grow?

Krishna Defence’s standalone profit for the quarter ended 30 September 2026 more than doubled to Rs 15.12 crore from Rs 6.86 crore in the quarter ended 30 September 2025. Profit before tax increased to Rs 20.59 crore from Rs 9.14 crore, while total income rose to Rs 77.00 crore from Rs 49.01 crore.

Revenue from operations increased 55.7% to Rs 75.29 crore in Q2 from Rs 48.36 crore a year earlier. Sequentially, revenue was higher than Rs 57.60 crore in the quarter ended 30 June 2026, and profit exceeded the Rs 11.67 crore reported in that preceding quarter.

Basic earnings per share were Rs 10.12 in Q2, compared with Rs 4.58 in the corresponding quarter of 2025. Paid-up equity share capital was Rs 14.95 crore at 30 September 2026, versus Rs 14.06 crore a year earlier, after 14,352 employee stock options were exercised during the quarter.

What changed in Krishna Defence’s Q2 costs?

Krishna Defence’s total expenses rose to Rs 56.41 crore in Q2 from Rs 39.87 crore a year earlier, an increase of 41.5% that was below the 57.1% increase in total income. The difference between income and expenses resulted in profit before tax of Rs 20.59 crore for the September 2026 quarter.

Purchases of stock-in-trade increased to Rs 12.19 crore from Rs 1.89 crore, while job work and labour charges rose to Rs 6.88 crore from Rs 5.95 crore. Other expenses increased to Rs 10.82 crore from Rs 6.53 crore, and depreciation and amortisation rose to Rs 1.25 crore from Rs 66.53 lakh.

Cost of materials consumed moved lower, falling to Rs 19.43 crore from Rs 24.57 crore in Q2 of the prior year. Employee benefit expenses were Rs 5.40 crore against Rs 5.42 crore, while finance costs increased to Rs 11.81 lakh from Rs 5.14 lakh.

Why did Krishna Defence report negative operating cash flow?

Krishna Defence reported net cash used in operating activities of Rs 5.16 crore for the half year ended 30 September 2026, despite standalone profit before tax of Rs 35.49 crore. Its cash-flow statement recorded operating profit before working-capital changes of Rs 37.68 crore, showing the distinction between reported profit and cash movement during the six months.

The largest stated working-capital movement was a Rs 56.22 crore increase in trade receivables. After working-capital changes, cash generated from operations was Rs 4.16 crore, and direct taxes paid, net of refunds, were Rs 9.32 crore, producing the negative operating cash-flow result.

This contrasts with the year ended 31 March 2026, when Krishna Defence reported net cash from operating activities of Rs 86.05 crore. For the half year ended 30 September 2026, the company reported standalone profit of Rs 26.79 crore but an operating cash outflow, alongside the receivables movement disclosed in its cash-flow statement.

How large were Krishna Defence’s receivables and balance-sheet changes?

Krishna Defence’s trade receivables stood at Rs 88.86 crore at 30 September 2026, compared with Rs 34.68 crore at 31 March 2026, an increase of Rs 54.18 crore. The closing receivables balance was greater than the company’s Rs 75.29 crore Q2 revenue from operations, although the filing does not provide receivables ageing or customer-level detail.

Cash and cash equivalents declined to Rs 1.17 crore at 30 September 2026 from Rs 6.03 crore at 31 March 2026. Bank balances other than cash and cash equivalents fell to Rs 6.93 crore from Rs 25.05 crore, while inventories declined to Rs 10.75 crore from Rs 16.31 crore.

Total assets increased to Rs 255.97 crore at 30 September 2026 from Rs 213.73 crore at 31 March 2026. Equity rose to Rs 215.52 crore from Rs 190.15 crore, while current liabilities increased to Rs 39.32 crore from Rs 22.37 crore; current borrowings were Rs 5.38 crore, compared with Rs 1.60 crore at the March year-end.

What do Krishna Defence’s half-year results and disclosures show?

Krishna Defence reported revenue from operations of Rs 132.89 crore for the half year ended 30 September 2026, compared with Rs 116.28 crore in the corresponding half of 2025. Standalone profit rose to Rs 26.79 crore from Rs 15.64 crore, and profit before tax increased to Rs 35.49 crore from Rs 20.81 crore.

The company identified Defence Products as its principal business activity under Indian Accounting Standard 108, or Ind AS 108. Other Products did not meet the quantitative thresholds for separate reporting, leaving Krishna Defence with one reportable operating segment and no separate revenue, asset or liability disclosure by product segment.

The board declared an interim dividend of Rs 0.75 per equity share of face value Rs 10, equivalent to 7.50% of face value. The board approved the standalone results on 29 October 2026, and CNK & Associates LLP issued an unmodified review conclusion on the unaudited results.

Conclusion

Krishna Defence’s September-quarter results show higher revenue and profit, with standalone Q2 profit of Rs 15.12 crore and first-half profit of Rs 26.79 crore. The result also shows a divergence between earnings and cash conversion: trade receivables reached Rs 88.86 crore while first-half net operating cash flow was negative Rs 5.16 crore.

The next reporting period will show whether receivables, up Rs 54.18 crore from 31 March 2026, convert into collections and alter operating cash flow. The filing also leaves the declared Rs 0.75-per-share interim dividend and the single Defence Products reportable segment as items for subsequent company disclosures.