1. At a Glance
Welcome to Kross Ltd (BSE: 544253, NSE: KROSS) — a company that started in 1991 making axles and suspension parts but now behaves like it’s auditioning for Fast & Furious: Jamshedpur Drift. With Q2FY26 revenue of ₹130.9 crore and PAT of ₹8.08 crore, it’s flexing its manufacturing muscle in the tractor, trailer, and commercial vehicle ecosystem.
The stock trades at ₹165 with a market cap of ₹1,059 crore, P/E of 21.4, and ROCE of 21.7%. Not bad for a company that literally builds undercarriage parts and now dreams of becoming India’s next auto components rockstar.
It’s got debt of just ₹60 crore (debt-to-equity 0.13), ROE of 16.5%, and interest coverage of 9.4x, meaning it could pay interest comfortably even if half its clients delayed payments because “Bhai, payment next week pakka.”
Kross isn’t here for small talk. It’s building a ₹167 crore seamless tube plant in Jharkhand, expanding its axle beam extrusion line to 7,500 units per month, and even adding tipping jack production by November 2025. The IPO it launched in September 2024 raised ₹500 crore — and the company claims not a single rupee of deviation in fund utilization.
Now that’s what we call tight bolts, cleaner books, and heavy metal progress.
2. Introduction
If Arihant was the funny builder of Chennai, Kross is the gritty machinist of Jamshedpur — born in the grease of gearboxes and raised on the fumes of diesel. Incorporated in 1991, the company spent decades quietly producing components nobody sees but every vehicle needs.
From axles, suspensions, and bevel gears to king pins, universal joints, PTO shafts, and anti-roll bars, Kross’s parts basically hold India’s trucks and tractors together. If your farm tractor ploughed last season without shaking itself to pieces — you might owe Kross a thank-you.
But behind that modest industrial story is a powerful transformation. Post-IPO, the company has gone from a niche vendor to an ambitious Tier-1 component supplier, serving big names like Ashok Leyland, Dana, Tata International DLT, Automotive Axles, TAFE, and even Hino.
It’s not a glamorous brand you’ll find on billboards — it’s the kind of company that makes the stuff that makes the stuff move. And that’s precisely why analysts are finally taking it seriously.
With ₹605 crore in FY25 revenue, ₹49.5 crore PAT, and OPM of 12.8%, Kross is quietly outperforming industry averages — proving that even small auto ancillaries can have big torque.
3. Business Model – WTF Do They Even Do?
In plain English: Kross builds the bones of big machines.
Here’s the breakdown:
- Trailer Parts Division – Think axles, suspensions, landing gears, and king pins. Basically, the lower back of every truck and trailer.
- Tractor Components Division – Hydraulic lifts, rear axles, and spindle assemblies for farm tractors. The rural India backbone.
- Truck Components Division – Parts for transmission, steering, gear shifting, and chassis — i.e., the joints that keep the
- truck from doing the Garba on the highway.
- Trailer Components – Everything from axle assemblies to braking parts, crafted with TÜV-certified precision.
The company manufactures 5,000 trailer axles and suspension assemblies per month (soon to be 7,500 units once its new extrusion plant starts in FY26).
Utilization levels are excellent — 70–85% across products. For example, axle shafts at 82%, anti-roll bars at 81%, and trailer axles at 68%. These aren’t sleepy factories; these are metal gyms running near full capacity.
And it doesn’t end there — they’re entering seamless tube manufacturing (₹167 crore capex, 1.2 lakh capacity addition). It’s like watching an old-school manufacturer morph into a mini-Tube Investments.
The cherry on top? Kross’s top five clients contribute ~62% of revenues, giving it concentrated but reliable demand visibility.
So what does Kross really do? It takes your truck’s skeleton, gives it muscles of steel, and adds joints that don’t squeak.
4. Financials Overview
| Metric (₹ Cr) | Sep Q2FY26 | Sep Q2FY25 | Jun Q1FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 130.9 | 139.0 | 139.4 | -5.8% | -6.5% |
| EBITDA | 14.75 | 18.15 | 16.17 | -18.7% | -8.8% |
| PAT | 8.08 | 9.62 | 10.7 | -16.0% | -24.5% |
| EPS (₹) | 1.25 | 1.49 | 1.66 | -16.1% | -24.7% |
Annualized EPS = ₹1.25 × 4 = ₹5.00
P/E (₹165 / ₹5.00) = 33x
So yes, earnings dipped this quarter, and the market noticed — the stock fell ~19% in three months. But context matters: they’re mid-expansion, with ₹200+ crore worth of projects under execution. That’s like expecting a bodybuilder to stay shredded while bulking up.
5. Valuation Discussion – Fair Value Range
(a) P/E Method
Industry P/E = 31.4
Company EPS (FY25) = ₹7.68
→ Fair range = ₹7.68 × (20–30) = ₹154 – ₹230 per share
(b) EV/EBITDA Method
EV = ₹1,065 Cr
EBITDA = ₹77 Cr
EV/EBITDA = 13.8x (moderate for auto ancillaries)
Peer average EV/EBITDA = 14–20x
→ Fair EV range = ₹1,078 – ₹1,540 Cr
→ After subtracting net debt (₹60 Cr) → Equity Value = ₹1,018 – ₹1,480 Cr
→ Per share = ₹155 – ₹225
(c) DCF Method (Simplified)
Assume PAT ₹50 Cr, growth 12%,
