According to reports from Business Standard, India Ratings & Research has affirmed Kross's long-term rating at 'IND A' with a 'stable' outlook. The credit rating agency has also maintained the company's short-term rating at 'IND A1'. As reported by Business Standard, this rating affirmation reflects the agency's expectation of sustained revenue growth over FY27-FY28, with healthy profitability and credit metrics.
According to Business Standard, Kross reported steady revenues and resilient operating profitability with rangebound EBITDA margins over FY24-FY26. The company's credit metrics remained healthy in FY25-FY26, following the receipt of proceeds from an initial public offering (IPO). As reported by Business Standard, the IPO proceeds were utilised to largely repay its debt, leading to a reduction in its interest burden and improvement in coverage indicators.
As reported by Business Standard, Kross has been investing to increase its existing capacities and develop new products, which is expected to benefit its top line from FY27 onwards. This capacity expansion remains a key monitorable factor for the company's future performance. Additionally, India Ratings believes the company's deleveraged balance sheet and healthy cash balance would support its credit profile in case of any downturn in the auto industry.
According to Business Standard, Kross is engaged in the manufacturing of automobile parts including axle shafts, coupling flanges, and tractor parts for commercial vehicles and tractors. The company operates five integrated manufacturing plants, including a forging unit in Jamshedpur. As reported by Business Standard, the stock price rose 0.68% to currently trade at ₹191.20 on the BSE following the rating announcement.
