Order Book Or Contract Wins
Expected: CurrentHIGH confidence
What: Order Book: ₹1,423 Mn
“As of December 31, 2026, the order book stands at INR 1,423 million, reflecting a strong and stable business pipeline.”
Krishna Defence & Allied Industries Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +29.6%AverageRe-Entry
In , Krishna Defence & Allied Industries Ltd (Shipping - Proxy) is outperforming Nifty 500 with +29.6% relative strength. Fundamentals: Average.
Krishna Defence & Allied Industries Ltd Key Facts
- PE Ratio
- 44.9x
- Market Cap
- ₹1,613 Cr
- PAT Growth YoY
- +150%
- Revenue Growth YoY
- +23%
- OPM
- 22.0%
- RS vs Nifty 500
- +29.6%
PE: Near TroughStrong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 89% YoY — balance sheet strengthening
👔Promoter stake down 2.3% this quarter
💰Trading 28% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
CurrentHIGH
2. Operating Leverage Inflection
Q3 FY26HIGH
3. Regulatory Approval Or License Win
Q3 FY26MEDIUM
Key Risks
1. Raw material price volatility in steel, though partially mitigated by price vari
MEDIUM2. Long gestation periods for certification and trial processes for new products
LOWSector-Specific Signals
Order Book₹142.3 Cr
Capacity Utilisation60%
Defence Revenue Mix92%
Bulb Bar Revenue Share65-70%
Key Numbers
PAT Growth YoY
+150%
Stable
Revenue YoY
+23%
Stable
Operating Margin
22.0%
+1100 bps YoY
PE Ratio
44.9
Current Price
₹1,080
Dividend Yield
0.09%
Fundamental Score
52/100
Average
3Y PAT CAGR
+80%
Market Cap
1.8K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Krishna Defence & Allied Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: EBITDA Margin: 22.2%
Impact: +1077 bps YoY
“The operational leverage has kicked in since the numbers have increased that is there. The fixed cost gets divided over the larger number of quantities.”
Regulatory Approval Or License Win
Expected: Q3 FY26MEDIUM confidence
What: PLI Scheme: MoU Signed
“Entered into a Memorandum of Understanding with the Ministry of Steel under the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel.”
New Product Or Brand Launch
Expected: FY 2027MEDIUM confidence
What: AUV Prototype: ToT Acquired
“Acquired key technology from CSIR - National Institute of Oceanography, Goa for the CBot Autonomous Underwater Vehicle (AUV).”
Geographical Expansion
Expected: FY 2027LOW confidence
What: Export Potential: Southeast Asia, Middle East, Europe
“Potential for exporting these products to Southeast Asia, the Middle East, and Europe.”
EBITDA Margin of 22.2% in Q3 FY26
HIGH confidence
What: EBITDA Margin of 22.2% in Q3 FY26
“EBITDA % Q3FY26 22.2 % +1077 bps YoY. The fixed cost gets divided over the larger number of quantities.”
What Are the Key Risks for Krishna Defence & Allied Industries Ltd?
Earnings deceleration risks from management commentary
Raw material price volatility in steel, though partially mitigated by price vari
MEDIUMTrigger: Steel is the primary raw material for bulb bars and other defence products.
Management view: Immediate supply contracts involve immediate booking with steel mills; long-term contracts have price variation formulas.
Monitor: commodity
Long gestation periods for certification and trial processes for new products
LOWTrigger: New companies or products must undergo rigorous naval certification which takes time.
Management view: The company leverages its 12-13 years of experience and existing approvals as a barrier to entry.
Monitor: regulatory
What Is Krishna Defence & Allied Industries Ltd's Management Saying?
Key quotes from recent conference calls
“I've maintained, that we will be growing at that 30%, 40% CAGR that is there. We are very confident of achieving that. [Previous Revenue Growth guidance]”
“But that number should be in the range of about close to ₹100 crores, to ₹150 crores that is what we anticipate. [Previous Order Inflow guidance]”
“This is India's largest AUV that is under construction at our factory as per the naval design. You will see the action in FY 2027. [Initiative: Autonomous Underwater Vehicle (AUV) Development]”
“We will surely see revenues by FY 2027 on that. We see that, on an average, well, it should be a ₹100 odd crore market. [Initiative: Composite Doors & Hatches JV]”
What Did Krishna Defence & Allied Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹636.6 Mn
YoY +23.4%QoQ +31.6%
Why: Growth was driven by increased execution of orders, particularly for shipbuilding steel sections like bulb bars.
The company achieved its highest-ever quarterly revenue, reflecting strong execution momentum in the defence segment.
EBITDA
₹141.6 Mn
YoY +139.3%Margin 22.2%
Why: Operational leverage kicked in as fixed costs were divided over larger quantities, alongside improved yields from repetitive manufacturing processes.
EBITDA margins expanded significantly by 1,077 bps YoY due to efficiency gains in the bulb bar product line.
PAT
₹101.8 Mn
YoY +163.9%QoQ +48.4%
Why: Profitability surged due to the substantial expansion in operating margins and higher revenue throughput.
PAT growth outpaced revenue growth, highlighting the impact of margin expansion and operational efficiency.
Other Highlights
• Successfully migrated to the NSE Main Board in Q3 FY26.
• Signed an MoU under the PLI Scheme 1.2 for Specialty Steel.
• Acquired Transfer of Technology (ToT) for the CBot Autonomous Underwater Vehicle.
What Sector Metrics Matter for Krishna Defence & Allied Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
₹142.3 Cr
QoQ -27.4%
Why: Execution of existing orders outpaced new order inflows in the current quarter.
Capacity Utilisation
60%
QoQ 0%
Why: Stabilized at 60% following the doubling of capacity earlier in the year.
Defence Revenue Mix
92%
Why: Dominant focus on naval and army supplies.
Bulb Bar Revenue Share
65-70%
Why: Primary product for naval hull construction.
Indigenised Items Inducted
12+
Why: Ongoing focus on 'Make in India' and import substitution.
Halol Facility Size
1,50,000 sq. ft.
Why: Main foundry and fabrication hub for defence products.
Conceptia H1 Revenue
₹40 Cr
Why: Associate company performance in ship and submarine design.
Waveoptix H1 Revenue
₹18 Cr
Why: Associate company performance in defence electronics.
H2 Order Inflow Guidance
₹100-150 Cr
Why: Anticipated conversion of tenders in the pipeline.
Receivable Days Status
Low
Why: Efficient document processing and follow-ups by the finance team.
What Is Krishna Defence & Allied Industries Ltd's Management Guidance?
Forward-looking targets from management for 3-5 years
Revenue Growth Target
30%
OPM Guidance
20–22%
Capex Plan
₹5 Cr
Revenue Outlook
30%+
Margin Outlook
Expect to maintain current margins and work towards improving them through efficiency.
Capex Plan
₹5 crores to ₹10 crores
Efficiency improvements and introducing better manufacturing practices.
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Revenue Growth CAGR: 30% to 40% → 30%+
How Fast Is Krishna Defence & Allied Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +23% | +57% | Stable |
| PAT (Net Profit) | +150% | +80% | Stable |
| OPM | 22.0% | +1100 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Shipping - Proxy Stocks Beating Nifty 500
Frequently Asked Questions: Krishna Defence & Allied Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Krishna Defence & Allied Industries Ltd's latest quarterly results?
Krishna Defence & Allied Industries Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +150.0% (stable)
- Revenue Growth YoY: +23.1%
- Operating Margin: 22.0% (volatile)
Is Krishna Defence & Allied Industries Ltd's profit growing or declining?
Krishna Defence & Allied Industries Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +150.0% (latest quarter)
- PAT Growth QoQ: +11.1% (sequential)
- 3-Year PAT CAGR: +80.0%
- Trend: Stable — consistent growth pattern
What is Krishna Defence & Allied Industries Ltd's revenue growth trend?
Krishna Defence & Allied Industries Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +23.1%
- Revenue Growth QoQ: +33.3% (sequential)
- 3-Year Revenue CAGR: +57.1%
How is Krishna Defence & Allied Industries Ltd's operating margin trending?
Krishna Defence & Allied Industries Ltd's operating margin is volatile.
- Current OPM: 22.0%
- OPM Change YoY: +11.0% basis points
- OPM Change QoQ: +3.0% basis points
What is Krishna Defence & Allied Industries Ltd's 3-year profit and revenue CAGR?
Krishna Defence & Allied Industries Ltd's long-term compounding rates
- 3-Year Profit CAGR: +80.0%
- 3-Year Revenue CAGR: +57.1%
Is Krishna Defence & Allied Industries Ltd's growth accelerating or decelerating?
Krishna Defence & Allied Industries Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +118.2% bps
- Sequential Acceleration: +29.3% bps
What is Krishna Defence & Allied Industries Ltd's trailing twelve month (TTM) performance?
Krishna Defence & Allied Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹34 Cr
- TTM PAT Growth: +36.0% YoY
- TTM Revenue: ₹265 Cr
- TTM Revenue Growth: +8.6% YoY
- TTM Operating Margin: 17.0%
Is Krishna Defence & Allied Industries Ltd overvalued or undervalued?
Krishna Defence & Allied Industries Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 44.9x
- Price-to-Book: 9.5x
What is Krishna Defence & Allied Industries Ltd's current PE ratio?
Krishna Defence & Allied Industries Ltd's current PE ratio is 44.9x.
- Current PE: 44.9x
- Market Cap: 1.6K Cr
- Dividend Yield: 0.09%
How does Krishna Defence & Allied Industries Ltd's valuation compare to its history?
Krishna Defence & Allied Industries Ltd's current PE is 44.9x.
- Current PE: 44.9x
- Valuation Assessment: Significantly Overvalued
What is Krishna Defence & Allied Industries Ltd's price-to-book ratio?
Krishna Defence & Allied Industries Ltd's price-to-book ratio is 9.5x.
- Price-to-Book (P/B): 9.5x
- Book Value per Share: ₹114
- Current Price: ₹1080
Is Krishna Defence & Allied Industries Ltd a fundamentally strong company?
Krishna Defence & Allied Industries Ltd is rated Average with a fundamental score of 51.99/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +23.1% (10% weight)
- PAT Growth YoY: +150.0% (10% weight)
- PAT Growth QoQ: +11.1% (10% weight)
- Margins stable (10% weight)
Is Krishna Defence & Allied Industries Ltd debt free?
Krishna Defence & Allied Industries Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1 Cr
What is Krishna Defence & Allied Industries Ltd's return on equity (ROE) and ROCE?
Krishna Defence & Allied Industries Ltd's return ratios over recent years
- FY2023: ROCE 15.0%
- FY2024: ROCE 17.0%
- FY2025: ROCE 24.0%
Is Krishna Defence & Allied Industries Ltd's cash flow positive?
Krishna Defence & Allied Industries Ltd's operating cash flow is negative (FY2025).
- Cash from Operations (CFO): ₹-11 Cr
- Free Cash Flow (FCF): ₹-6 Cr
- CFO/PAT Ratio: -50% (weak cash conversion)
What is Krishna Defence & Allied Industries Ltd's dividend yield?
Krishna Defence & Allied Industries Ltd's current dividend yield is 0.09%.
- Dividend Yield: 0.09%
- Current Price: ₹1080
Who holds Krishna Defence & Allied Industries Ltd shares — promoters, FII, DII?
Krishna Defence & Allied Industries Ltd's shareholding pattern (Mar 2026)
- Promoters: 60.0%
- FII (Foreign): 0.6%
- DII (Domestic): 2.1%
- Public: 37.4%
Is promoter holding increasing or decreasing in Krishna Defence & Allied Industries Ltd?
Krishna Defence & Allied Industries Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 60.0% (Mar 2026)
- Previous Quarter: 60.0% (Dec 2025)
- Change: -0.06% (decreasing — worth monitoring)
How long has Krishna Defence & Allied Industries Ltd been outperforming Nifty 500?
Krishna Defence & Allied Industries Ltd has been outperforming Nifty 500 for 1 consecutive week, indicating early-stage outperformance.
Is Krishna Defence & Allied Industries Ltd a new momentum entry or an established outperformer?
Krishna Defence & Allied Industries Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Krishna Defence & Allied Industries Ltd?
Krishna Defence & Allied Industries Ltd has 6 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Strong pipeline of naval projects including NGC, Destroyers, and FSS.
- Operating Leverage Inflection — Fixed costs are being spread over larger production volumes of bulb bars.
- Regulatory Approval Or License Win — Qualification for PLI 1.2 for Specialty Steel strengthens domestic manufacturing capabilities.
- New Product Or Brand Launch — Acquisition of technology for CBot AUV from CSIR-NIO strengthens seabed operation capabilities.
What are the key risks in Krishna Defence & Allied Industries Ltd?
Krishna Defence & Allied Industries Ltd has 2 key risks worth monitoring
- [MEDIUM] Raw material price volatility in steel, though partially mitigated by price vari — Steel is the primary raw material for bulb bars and other defence products.
- [LOW] Long gestation periods for certification and trial processes for new products — New companies or products must undergo rigorous naval certification which takes time.
What did Krishna Defence & Allied Industries Ltd's management say in the latest earnings call?
In Q3 FY26, Krishna Defence & Allied Industries Ltd's management highlighted
- "I've maintained, that we will be growing at that 30%, 40% CAGR that is there. We are very confident of achieving that. [Previous Revenue Growth guida..."
- "But that number should be in the range of about close to ₹100 crores, to ₹150 crores that is what we anticipate. [Previous Order Inflow guidance]"
- "This is India's largest AUV that is under construction at our factory as per the naval design. You will see the action in FY 2027. [Initiative: Auton..."
What is Krishna Defence & Allied Industries Ltd's management guidance for growth?
Krishna Defence & Allied Industries Ltd's management has provided the following forward guidance for 3-5 years
- Revenue growth target: 30%
- OPM guidance: 20–22%
- Capex plan: ₹5 Cr for Efficiency improvements and introducing better manufacturing practices.
- Management tone: bullish
- Milestone: [REAFFIRMED] Revenue Growth CAGR: 30% to 40% → 30%+
What sector-specific metrics matter most for Krishna Defence & Allied Industries Ltd?
Krishna Defence & Allied Industries Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: ₹142.3 Cr (QoQ -27.4%) — Execution of existing orders outpaced new order inflows in the current quarter.
- Capacity Utilisation: 60% (QoQ 0%) — Stabilized at 60% following the doubling of capacity earlier in the year.
- Defence Revenue Mix: 92% — Dominant focus on naval and army supplies.
- Bulb Bar Revenue Share: 65-70% — Primary product for naval hull construction.
- Indigenised Items Inducted: 12+ — Ongoing focus on 'Make in India' and import substitution.
- Halol Facility Size: 1,50,000 sq. ft. — Main foundry and fabrication hub for defence products.
Is Krishna Defence & Allied Industries Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Krishna Defence & Allied Industries Ltd may be worth studying
- Earnings growing at +150.0% YoY
What is the investment thesis for Krishna Defence & Allied Industries Ltd?
Krishna Defence & Allied Industries Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +23.1% YoY
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Raw material price volatility in steel, though partially mitigated by price vari
What is the future outlook for Krishna Defence & Allied Industries Ltd?
Krishna Defence & Allied Industries Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Raw material price volatility in steel, though partially mitigated by price vari
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.