Kranti Industries Ltd Q2 FY26: Precision Machining Goes Brrr… ₹23.16 Cr Sales, 335% PAT Growth, and Enough CNCs to Make Iron Man Jealous
1. At a Glance
Kranti Industries Ltd — Pune’s own precision machining powerhouse — just dropped its Q2 FY26 results, and let’s just say the numbers are flexing harder than a freshly oiled crankshaft. The company clocked ₹23.16 crore in revenue, up 20.2% YoY, while the PAT zoomed 335% to ₹1.15 crore. The stock trades around ₹84.3, giving a market cap of ₹108 crore — smallcap by size, but the ambition screams largecap energy.
Despite the size of its CNC machines, Kranti’s ROCE sits at -0.56% and ROE at -5.5%, showing the company’s profits still have a gym subscription but haven’t yet shown up. Its P/E ratio of 121 can make even startup founders blush — but hey, growth stories love drama.
From machining parts for tractors and EVs to securing new orders from Bonfiglioli, CNH Industrial, and Defence PSUs, Kranti seems to have its lathe spinning in the right direction. Now the question is — can the numbers catch up with the narrative?
2. Introduction
There are two types of Indian smallcaps: one that dreams of becoming Tata Motors, and another that actually builds parts for Tata Motors’ suppliers. Kranti Industries proudly sits in the latter category — the silent yet deadly tribe of auto ancillary warriors who cut, mill, and machine their way into global supply chains.
Incorporated in 2019, Kranti may look young, but it’s already carved out its own territory in precision machining. With five facilities in Pune and over 78 high-tech machines, it manufactures machined castings for transmissions, axles, chassis, and even electric vehicle parts. Think of it as the backstage engineer that ensures the big automotive names can strut confidently on the global ramp.
FY25 wasn’t all smooth — the company’s margins looked like India’s roads during monsoon: full of potholes. But Q2 FY26 brought a turnaround, with OPM soaring to 18.2%, and PAT margins finally catching breath. Combine that with new export orders and defence deals, and Kranti’s management looks more like an F1 pit crew — high on caffeine, precision, and hope.
3. Business Model – WTF Do They Even Do?
Kranti Industries makes the kind of things most investors can’t even spell but are crucial for machines that make the world move. The company’s portfolio includes differential housings, axle components, transmission parts, and precision-machined automotive components. Basically, everything that turns torque into motion.
They supply to a juicy list of clients: John Deere, Dana, CNH International, Carraro, Endurance, Sonalika, and Bharat Gears — the who’s who of the tractor and transmission world.
And they don’t just stop at tractors — 55.7% of their revenue comes from the tractor segment, followed by construction equipment (17.7%), EVs (5.9%), and other categories. So, whether it’s a farm, a factory, or a future EV prototype, Kranti’s metal has likely been there.
Its 5 manufacturing plants in Pune come packed with 5-axis turn mill centers, HMCs, and CMM setups — basically, the Avengers of machine tools. The company processes over 5,600 tons of machined castings annually and cranks out 5 lakh+ precision parts a year.
It’s like watching Ratan Tata and Tony Stark brainstorm: precision, scale, and just enough ambition to make you whisper, “Yeh banda kuch bada karega.”
4. Financials Overview
Quarterly Results – Consolidated (₹ in Crores)
Metric
Q2 FY26 (Sep 2025)
Q2 FY25 (Sep 2024)
Q1 FY26 (Jun 2025)
YoY %
QoQ %
Revenue
23.16
19.26
22.05
20.2%
5.0%
EBITDA
4.22
1.33
3.52
217%
19.9%
PAT
1.15
-0.82
0.59
335%
94.9%
EPS (₹)
0.96
-0.46
0.49
—
95.9%
Kranti’s turnaround this quarter deserves a standing ovation — or at least a mild clap. After a string of inconsistent profits, they’ve finally pulled a clean quarter. The EBITDA margin leaped to 18.22%, almost triple YoY.
Annualized EPS now stands at ₹3.84, giving an annualized P/E of 21.9x, which suddenly makes that screaming “121 P/E” on the dashboard look less horrifying. It’s almost as if the screener’s AI saw the Q2 results and whispered, “Bro, mujhe laga tu gaya tha!”
5. Valuation Discussion – Fair Value Range Only
Let’s apply three simple valuation lenses:
(a) P/E Method
Annualized EPS: ₹3.84
Industry Average P/E: ~30x
Fair Value Range = ₹3.84 × (25–35) = ₹96 – ₹134 per share
(b) EV/EBITDA Method
EV = ₹153 Cr
EBITDA (TTM) = ₹11.0 Cr
EV/EBITDA = 13.9x Assuming a comfortable industry multiple range of 10–14x, the fair EV range translates into ₹110 – ₹155 Cr, or ₹80 – ₹115 per share.
(c) DCF Simplified
Even with conservative assumptions — revenue CAGR of 8%, EBITDA margin of 13%, discount rate 11% — the intrinsic value clusters around ₹100 – ₹120 per share.
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
If there’s one thing Kranti’s management loves, it’s press releases that sound like defense briefings. Over the last six months:
Received 20 machining orders from AVNL–MTPF worth ₹87 lakh in Nov–Dec 2025, with
