In a bold move, Mr. Sudhir Rai, Chairman, Managing Director and Promoter of Kross, has been buying the company through open market purchases in May 2025. This is in line with Kross’s strong Q4 and FY 2025 performance, which shows the company’s operational momentum, capital discipline and future growth plans. Following the announcement shares of Kross surged up to 12% intraday.
Kross Promoter’s Purchase Activity: A Buy Signal!
As per the regulatory filings made to BSE and NSE, Mr. Rai acquired a total of 1,00,324 shares in two tranches:
- 50,000 shares on 28 May 2025
- 50,324 shares on 30 May 2025
This is a 0.16% increase in equity stake, taking his total holding to 37.96% from 37.80%. The transactions were done through open market purchases, which shows the promoter’s long-term view of the company.
Promoter level confidence is a good indicator of intrinsic value, especially in post-IPO listed companies like Kross which was listed in September 2024 after a INR 500 crore IPO.
Kross Q4 FY25 Results
Kross Limited ended FY25 on a high note, delivering a solid Q4 marked by double-digit sequential growth and year-over-year stability despite challenging macroeconomic conditions.
Key Q4 FY25 Metrics:
- Revenue: INR185.0 crore (↑1.1% YoY | ↑23.3% QoQ)
- EBITDA: INR 26.8 crore (↑0.3% YoY)
- EBITDA Margin: 14.5% (vs. 14.6% in Q4 FY24)
- PAT: INR 17.1 crore (↑9.7% YoY | ↑26.1% QoQ)
- PAT Margin: 9.3% (vs. 8.5% YoY)
What stands out is margin stability despite cost pressures and an increase in operational expenses. Gross profit for the quarter rose to INR 83 crore, with gross margins at a healthy 44.9%.
From a segmental standpoint, revenue was evenly split between:
- Component Business: 54.1%
- Trailer Axles & Suspension Systems: 45.9%
This indicates a diversified and balanced product mix, reducing risk from sectoral slowdowns.
FY25 Performance
While topline growth for the full year remained flat, Kross demonstrated resilience by maintaining profitability and enhancing capital efficiency.
FY25 Financial Highlights:
- Revenue from Operations: INR 620.4 crore (flat YoY)
- EBITDA: INR 81.3 crore (↑0.6%)
- EBITDA Margin: 13.1%
- Profit After Tax: INR 48.0 crore (↑7.0%)
- PAT Margin: 7.7%
- EPS: INR 8.04
Gross fixed asset turnover ratio stood at 4.7x, while return on capital employed (RoCE) moderated to 16.7% from 28.2% a year ago, largely due to an expanded asset base and IPO-linked investments.
Kross’s net cash position improved significantly, with cash and cash equivalents rising to INR 82.8 crore (vs. INR 5.7 crore in FY24), aided by strong IPO proceeds, improved working capital discipline, and reduced debt.
Capex, Diversification & Export Momentum
Commenting on the results, Mr. Rai stated:
“Q4 marked a strong finish to the year, with record production in our trailer axle segment. Our investments in operational efficiency and technology are paying off, and we remain focused on sustainable and diversified growth.”
Key operational milestones and ongoing projects include:
- Axle Beam Extrusion Line: To be operational in Q2 FY26, increasing capacity to 7,500 units/month from 5,000.
- Seamless Tube Plant: INR 167 crore capex; to commence commercial production by Q3 FY27.
- Entry into Tipping Jack Segment: Revenue expected from H2 FY26, strengthening Kross’s position in the trailer ecosystem.
- Export Growth: INR 19.7 crore in FY25 export revenue; targeting 5% of total revenue from exports in FY26.
- Customer Base Expansion: 100+ trailer axle customers added over the past 2-3 years, reflecting strong market traction.
Balance Sheet Fortification Post-IPO
Following the successful IPO in September 2024, Kross Limited has dramatically deleveraged its balance sheet:
- Debt-to-Equity Ratio: Reduced to 0.1x (vs. 0.8x in FY24)
- Total Equity: INR 434.5 crore (↑196% YoY)
75% of IPO proceeds have already been deployed for capex, debt repayment, and working capital. The remaining will be utilized in FY26, aligning with upcoming project milestones.
Kross Post-IPO Performance
Kross launched its INR 500 crore IPO on 9 September 2024. The IPO was a mix of fresh and OFS equally divided. The IPO received a 16.5x subscription and listed with a 8.25% returns. However, shares of Kross declined to INR 154.65 per shares on 9 May 2025, a correction of 27.64% from its 52 week high of INR 270.89 per share.
Looking Ahead
Mr. Rai’s active market participation and the company’s consistent operational performance paint a picture of a high-conviction growth story backed by solid fundamentals. With new projects, margin-accretive initiatives, and international expansion in the pipeline, Kross appears well-positioned to transition from a domestic auto-component player to a globally relevant systems manufacturer.
For investors, this dual confirmation — from numbers and the promoter’s wallet — makes Kross Limited a noteworthy contender in the industrial mid-cap space, especially in India’s evolving commercial vehicle and trailer manufacturing ecosystem.
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