Kross Q2 FY27: standalone PAT up 143% YoY to ₹19.7 Cr as margins expand toward guided range

Kross Limited's standalone revenue from operations for Q2 FY27 (quarter ended September 30, 2026) came in at ₹235.09 Cr, up 79.6% YoY from ₹130.92 Cr and 27.5% QoQ from ₹184.34 Cr. Net profit rose even faster, up 143.5% YoY to ₹19.69 Cr from ₹8.09 Cr, and 47.9% QoQ from ₹13.31 Cr, taking basic EPS to ₹3.08 (not annualised) from ₹1.25 a year ago and ₹2.06 last quarter. The company has no subsidiaries, so this standalone print is also the only set of numbers — there is no consolidated divergence to reconcile. The profit growth outpaced revenue because margins expanded on both counts: operating margin (EBITDA/revenue) rose to roughly 13.9% from about 12.1% a year ago and 12.4% last quarter, while net margin widened to 8.37% from 6.13% YoY and 7.21% QoQ. This directly validates what management flagged on the Q1 FY27 call — that the 12.2% EBITDA margin delivered in Q1, below its 14-15% guided band, was a commodity-cost lag that would reverse as pass-through kicked in from Q2 onward. The margin did move up sequentially as promised, though at ~13.9% it is still short of the top of the guided range, so the pass-through appears to be working but isn't fully complete. On growth, the quarter runs far ahead of the only formal marker on record: management's reaffirmed FY27 target of ~22% growth, made on the back of Q1's in-line performance. H1 FY27 revenue of ₹419.43 Cr is up 55.2% YoY and H1 PAT of ₹33.16 Cr is up 76.6% YoY — both multiples of the stated target, making this a clear beat on guidance even as the margin trajectory is only now catching up. No formal sell-side consensus for this specific quarter could be confirmed; the closest available marker, an independent pre-earnings preview, had flagged whether revenue could sustain near the ₹225 Cr peak seen in March 2026 and whether OPM could hold in the mid-teens — the actual ₹235 Cr print tops that prior peak and OPM of ~13.9% sits just under the mid-teens bar, which reads as a beat on the informal expectation set. No separate management press release accompanied this filing, so there is no additional management commentary to cross-check against the print beyond the board outcome letter and notes. Two corporate-action threads from the quarter tie into the numbers. First, the Board approved a preferential issue of 15,00,000 equity shares and 15,00,000 convertible warrants on August 31, 2026, since cleared by shareholders via postal ballot on September 30, 2026 and now pending stock-exchange in-principle approval — fresh capital that lines up with the funding needs of the ongoing capex programme. Second, that capex programme is visibly underway: capital work-in-progress rose to ₹54.92 Cr from ₹16.00 Cr at FY26-end, and H1 capex (including CWIP) came to ₹59.16 Cr, roughly half of the ₹125 Cr plan management has guided toward its seamless-tube facility targeted for commissioning in Q4 FY27. Borrowings also stepped up — non-current borrowings nearly tripled to ₹77.94 Cr from ₹29.14 Cr at FY26-end — consistent with funding that capex ahead of the preferential-issue proceeds coming in. Going into H2 FY27, the print sets up a straightforward checklist: whether OPM closes the remaining gap to the 14-15% guided band, whether the seamless-tube facility stays on track for its Q4 FY27 commissioning, and whether the preferential allotment completes on schedule to support the back half of the ₹125 Cr capex plan.