Hidden Gem in Defence Sector: Krishna Defence Boasts Order Book 270% Higher Than Its FY24 Revenue
Introduction: A Rising Star in India’s Defence Manufacturing
Krishna Defence Boasts : India’s push for self-reliance in defence manufacturing is unveiling new opportunities for small-cap companies, and Krishna Defence and Allied Industries Limited is emerging as a standout performer. With an impressive order book that’s 2.7 times its FY24 revenue, this small-cap defence company is drawing strong interest from investors. Backed by a solid client base that includes the Indian Army and Navy, and driven by rapid growth in revenue and profit, Krishna Defence could be a potential multibagger in the making.
Company Snapshot: Specialists in Defence Innovation
Founded in 1998, Krishna Defence and Allied Industries Limited has carved a niche in defence electronics, naval systems, and aerospace components. The company’s focus on indigenous design and advanced technology solutions makes it a key player in India’s defence ecosystem. It caters to several high-profile defence organizations, including:
- Indian Army
- Indian Navy
- Border Security Forces (BSF)
- Defence Research & Development Organisation (DRDO)
- Larsen & Toubro
- Mazagon Dock Shipbuilders
- Garden Reach Shipbuilders & Engineers
- Goa Shipyard Limited
This wide range of clients speaks volumes about the company’s credibility and expertise in defence manufacturing.
Massive Order Book: 2.7x Revenue, A Strong Growth Signal
What’s catching investor attention is the company’s exceptional order book. As of September 30, 2025, Krishna Defence reported a closing order book of ₹282.97 crore, a 270% jump compared to its FY24 revenue. Here’s a breakdown:
- Opening Order Book (2025): ₹186.62 crore
- New Orders Received: ₹190.39 crore
- Orders Completed: ₹94.04 crore
- Closing Order Book: ₹282.97 crore
Importantly, 99.7% of these orders (₹282.1 crore) are defence-related, indicating a strategic and focused growth trajectory. The remaining ₹0.8 crore comes from the dairy sector, which the company also serves, albeit on a much smaller scale.
Future Outlook: Growth Path is Clear
Krishna Defence is planning to grow at a CAGR of over 40% for the next 3 to 5 years. To support this aggressive growth:
- It will double its production capacity in Halol, Gujarat.
- It aims to co-develop defence products with global partners.
- The focus will remain on creating cutting-edge electronics for defence and aerospace applications.
Such strategic moves are likely to position the company as a future leader in India’s defence manufacturing landscape.
Stock Performance: Investor Interest Picking Up
Recently, the stock of Krishna Defence and Allied Industries touched an intraday high of ₹823.95, marking a sharp 7.89% surge from the previous day’s close of ₹763.70. Though it later settled around ₹790, the movement signals growing investor interest as confidence builds around its robust order pipeline and financial performance.
Financial Highlights: Strong Fundamentals Back Growth Story
| Metric | Value |
|---|---|
| Market Capitalization | ₹1,110.66 crore |
| Revenue (H1 FY25) | ₹94 crore |
| Revenue Growth (YoY) | +168.57% |
| Net Profit (H1 FY25) | ₹11 crore |
| Net Profit Growth (YoY) | +266.67% |
| Return on Capital Employed (ROCE) | 16.9% |
| Return on Equity (ROE) | 13.2% |
| Earnings Per Share (EPS) | ₹13 |
| Debt-to-Equity Ratio | 0.11x |
The company’s minimal debt and healthy profitability ratios point to sound financial health and prudent capital management.
Why Krishna Defence Could Be a Multibagger
Several factors make Krishna Defence an attractive stock for long-term investors:
- Solid and growing order book
- Strong defence client portfolio
- Rapid growth in revenue and profit
- Low debt, high return ratios
- Government push for Make in India in defence
These strengths collectively indicate a company that’s not only growing fast but also managing its operations efficiently.
FAQs: Everything You Need to Know
Q1: Why is Krishna Defence and Allied Industries in the news?
A1: Because of its massive order book of ₹282.97 crore, which is 2.7 times its revenue for FY24, indicating strong future growth.
Q2: What sectors does the company serve?
A2: Primarily the defence sector (99.7% of orders), with a minor presence in the dairy sector.
Q3: Who are its key clients?
A3: Indian Army, Navy, DRDO, BSF, Mazagon Dock, L&T, and other major defence public sector undertakings.
Q4: How fast is the company growing?
A4: Revenue grew by 168.57% YoY in H1 FY25, and profit grew by 266.67%. It plans to grow at over 40% CAGR for the next 3–5 years.
Q5: Is the company financially sound?
A5: Yes. With a low debt-to-equity ratio of 0.11x, ROCE of 16.9%, and ROE of 13.2%, the company is financially stable and efficiently managed.
Q6: What makes it a potential multibagger?
A6: Its rapid revenue and profit growth, huge defence order book, strategic client base, and future expansion plans.
Conclusion: A Hidden Gem Worth Watching
Krishna Defence and Allied Industries Limited may still be under the radar for many investors, but the numbers and future plans tell a compelling story. With a booming order book, strong fundamentals, and the government’s defence push, this small-cap stock could turn into a big win for early investors.
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