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Krishna Defence & Allied Industries Ltd
NSE: KRISHNADEF INE0J5601015 Industrials Aerospace & Defense 🔎 Screen
₹1,611 Cr
Market Cap
39.3
P/E
0.41
PEG
31.1%
ROCE
23.7%
ROE
0.01
D/E
23.0%
OPM
-25.9%
% from 52W High
🔍 KRISHNADEF is showing a high-conviction setup because it matches 14 of 29 tracked screener presets and momentum_movers preset's Backtest win rate is 70.7% over 90 days. Net: Partial signal stack, not a recommendation. ? Conviction Backtest
Sources
Conviction 14/29 · Backtest win rate 70.7%
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📈 Price History
Ratio Health
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About

Incorporated in 1997, Krishna Defence and Allied Industries Ltd designs, develops, and manufactures a wide range of equipment for defence, security, and dairy segments

✓ Strengths 4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 81.4% CAGR over last 5 years
  • Company's working capital requirements have reduced from 110 days to 53.4 days
! Concerns 2
  • Stock is trading at 8.46 times its book value
  • Promoter holding has decreased over last 3 years: -13.5%
Key Ratios Snapshot
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📈 Growth Pattern
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Mixed quarter: revenue fell 15.2% YoY, but record EBITDA and PAT margins lifted profit growth 20-33%. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹57.6 Cr
-15.2% YoY; -11.2% QoQ
EBITDA Margin
26.3%
+776 bps YoY; EBITDA ₹15.2 Cr, +20.3% YoY
PAT
₹11.7 Cr
+32.9% YoY; margin 20.3%, +733 bps YoY
Unexecuted Order Book
₹117 Cr
Tender pipeline ₹289 Cr as on 30 Jun 2026
What Went Right
  • EBITDA jumped 20.3% YoY to ₹15.2 Cr with a record margin of 26.3%, up 776 bps YoY.
  • Net profit rose 32.9% YoY to ₹11.7 Cr, with a record margin of 20.3%, up 733 bps YoY.
  • Entered smart ammunition via a 46.81% stake in Taharabadkar Solutions, which won the iDEX-ADITI challenge and carries a ₹25 Cr Indian Navy grant.
  • Commissioned the Krishna Vabo Defence Composites facility for composite doors and hatches; pressure and fire tests are successfully completed, with Navy trials in the final phase.
  • Order book of ₹117 Cr plus a tender pipeline of ₹289 Cr provides a pipeline, while new AUV and UDA platform initiatives expand the strategic opportunity set.
What to Watch
  • Revenue contracted 15.2% YoY to ₹57.6 Cr from ₹67.9 Cr, and fell 11.2% sequentially from ₹64.9 Cr in Q4 FY26.
  • The ₹117 Cr unexecuted order book is only about 48% of FY26 revenue of ₹244.8 Cr, implying limited near-term revenue visibility without fresh awards.
  • Profit growth was driven partly by a 23.3% cut in total expenditure and a better mix, not by volume expansion — revenue declined in the quarter.
  • Management repeated a 30%+ CAGR aspiration but provided no revised FY27 numeric guidance after this YoY revenue fall.
Management Guidance
  • Management is aiming to grow at 30%+ CAGR for the next 3 to 5 years.
Investor Lens
The margin story is genuine — 26.3% EBITDA and 20.3% PAT margins are record highs — but the 15.2% YoY revenue decline and ₹117 Cr order book keep the near-term growth thesis unproven. The strategic bets are credible: smart ammunition with a ₹25 Cr Navy grant, composite doors/hatches in final Navy trials, an AUV subsidiary with Planys/Conceptia, and advanced foreign-OEM discussions for UDA platforms. None of these are yet contributing materially to reported revenue. The core defence fabrications business needs to convert the ₹289 Cr tender pipeline into firm orders to justify the 30%+ CAGR target. Watch next quarter for order inflows, revenue traction, and whether >20% margins can be sustained as volumes recover.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue dips 14.7% but PAT jumps 33.3% on margin expansion
Revenue
Revenue fell 14.7% YoY to ₹58.0 Cr, and also declined 10.8% QoQ. This indicates weak demand momentum despite higher profitability. The drop in sales is the main negative in the quarter.
Profitability
Net profit rose 33.3% YoY to ₹12.0 Cr, while remaining flat QoQ. EPS stood at ₹7.81, up from ₹6.01 in Jun 2025. PBT was ₹15.0 Cr with an effective tax rate of 22%.
Margins
Operating profit margin expanded sharply to 26% from 19% YoY, and marginally from 25% QoQ. Operating profit grew 15.4% YoY despite revenue decline. This margin expansion likely reflects better product mix or cost efficiencies.
Cash Flow
No cash flow data was provided in the quarterly release.
Balance Sheet
Debt-to-equity ratio is negligible at 0.01, indicating an almost debt-free balance sheet. ROCE of 31.1% and ROE of 23.7% point to strong capital efficiency.
Key Risks
Revenue decreased 14.7% YoY and 10.8% QoQ, signalling demand softness. The impressive 26% OPM may not be sustainable if sales continue to decline. Concentration in defence/industrial orders could add volatility.
Outlook
Profitability has improved sharply, but the declining top line raises caution. Future performance depends on whether the company can stabilise revenue while maintaining expanded margins.
Generated by AI · Jun 2026 results · Not investment advice
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