Kross Ltd H1FY27 Results (NSE: KROSS)
Signal: Steady quarter
The read
The trajectory is still expansionary: H1FY27 revenue rose 55.18% YoY to ₹4,194.31 million and PAT rose 76.54% to ₹331.63 million, but gross margin fell 177bps to 44.32% while CWIP climbed to ₹549.16 million; the next thesis test is whether new capacity converts into volume growth without further material-cost dilution.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹419.43 Cr | 55.18% | N/A |
| Net profit | ₹33.16 Cr | 76.54% | |
| EPS | ₹5.56 | N/A | |
| EBIT margin | N/A |
P&L walk
Standalone H1FY27 revenue increased 55.18% YoY to ₹4,194.31 million and PAT increased 76.54% to ₹331.63 million, while gross margin declined 177bps to 44.32%; the filing provides no consolidated statement because the company has no subsidiary, associate or joint venture.
Key positives
- H1FY27 revenue reached ₹4,194.31 million, up 55.18% YoY, materially accelerating from the prior reported quarter's 32.3% YoY growth.
- H1FY27 PAT increased 76.54% YoY to ₹331.63 million, ahead of revenue growth despite a 177bps gross-margin contraction.
- PPE and CWIP rose to ₹2,200.15 million and ₹549.16 million respectively, indicating that the capacity-expansion program is progressing on the balance sheet.
- The statutory review conclusion was unmodified, with no material misstatement identified by the auditors.
Key concerns
- Gross margin declined 177bps YoY to 44.32% as materials consumed increased to 56.14% of revenue from 54.41%; the filing does not disclose whether the pressure reflects input costs, pricing or mix.
- Operating cash flow was only ₹47.28 million versus PAT of ₹331.63 million, while investing cash outflow reached ₹631.08 million, indicating weak cash conversion during the expansion phase.
- Borrowings increased to ₹1,171.36 million from ₹523.65 million at March 31, 2026 as the company funded capacity and working capital.
- The proposed preferential issue of 15 lakh equity shares and 15 lakh convertible warrants remains pending in-principle stock-exchange approval and could dilute per-share economics after allotment.
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