Krishna Defence and Allied Industries Ltd announces Strong H1FY26 with Significant Operational and Strategic Progress

Krishna Defence and Allied Industries Limited (KDAIL), a leading indigenous defence manufacturing company serving the Indian Navy and Indian Army, today announced its financial results for the half year ended 30th September 2025 (H1FY26). The company received its strongest-ever half-yearly performance, reflecting significant growth in revenue, profitability, and operational progress. The robust results were supported by enhanced manufacturing capacities, increased operational efficiencies, and rising demand for indigenously developed defence systems.

With significant operational and strategic growth, for H1FY26, KDAIL recorded revenue of Rs 1,204.7 million compared to Rs 940.4 million in H1FY25, representing a YoY of 28.1%. EBITDA growth rose to Rs 216.2 million from Rs 141.4 million, delivering YoY growth of 52.9%. Net profit for the period stood at Rs 183.8 million, up from Rs 106.0 million in the previous year, marking a strong growth of 71 per cent. This includes a share of profit from the associate company amounting to Rs 27.6 million. The EBITDA margin improved to 17.9 per cent from 15.0 per cent, while the net profit margin increased to 15.3 per cent from 11.3 per cent during the same period. The Company's order book remained healthy at Rs 1,959.8 million as of 30th September 2025. Defence accounted for 92 per cent of the revenue mix, with the remaining 8 per cent coming from the dairy business.

During the first half of FY26, KDAIL expanded manufacturing capacity for shipbuilding steel sections, which became operational in April 2025. This expansion doubled the production capability and supported the increased demand for Naval Ship and Commercial Ship requirements. The associate company, Waveoptix Defence Solutions Private Limited, reported strong performance driven by rising demand for defence electronics and tactical communication solutions.

The company also reported steady progress in its joint venture with VABO Composite of the Netherlands. A dedicated facility for manufacturing composite doors and hatches is under development and is scheduled for commissioning in the fourth quarter of FY26. in June 2025, KDAIL hosted the ceremonial plate-cutting ceremony at its facility in Halol (Gujarat), marking the commencement of India's most advanced and largest Autonomous Underwater Vehicle, designed by the Indian Navy. This development brings together leading partners and reinforces India's Make-in-India goals in advanced underwater technologies.

The Company's manufacturing footprint spans multiple integrated facilities. Its Halol, Gujarat facility comprises approximately 100,000 sq. ft. of advanced defence manufacturing capabilities. The Kalol, Gujarat unit includes nearly 40,000 sq. ft. dedicated to dairy equipment manufacturing. In Bengaluru, the Company's associate operations house a defence electronics design and testing laboratory measuring around 2,000 sq. ft., along with an additional 4,000 sq. ft. unit for optical military and tactical cable assembly. KDAIL is ISO 9001:2015 certified and is recognised for its precision machining, advanced metallurgy capabilities, specialised fabrication processes, and multi-stage quality inspections.

"H1FY26 has been a remarkable period for Krishna Defence, marked by strong revenue growth and a healthy expansion in margins. This is also our best-ever Revenue, EBITDA and Profit for any half-year period. The commissioning of our additional manufacturing capacity and improved operating efficiencies have contributed significantly to our performance, with EBITDA growing 53% and net profit rising 71% YoY. EBITDA Margins also expanded to 17.9% during this period. We are also progressing well across our strategic initiatives, including defence electronics, new product development for import substitution, composite systems in partnership with VABO, and specialised defence-grade weld consumables. These investments reinforce our long-term commitment to building strong and indigenous defence capabilities for India. Our order book remains strong at nearly Rs 1,959.8 million, and we are confident of maintaining growth momentum as indigenisation gains further traction across both the defence and shipbuilding ecosystem," said Mr Ankur Shah, Managing Director, Krishna Defence and Allied Industries Limited.

Source : Equity Bulls

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KrishnaDefenceandAlliedIndustries H1FY26 ResultUpdate