Defence stock with revenue CAGR guidance of up to 40% to keep on your radar

This Multibagger Defence stock, engaged in manufacturing defence equipment, security products, dairy machinery, including milk cans and cooling tanks, mega kitchen equipment, and homeland security solutions for the Indian Armed Forces and government, is in focus after management guided revenue CAGR of up to 30-40 percent for the next 3-5 years.

With a market capitalization of Rs. 1,168.16 crore, the shares of Krishna Defence & Allied Industries Limited were currently trading at Rs. 783 per equity share, down nearly 0.74 percent from its previous day’s close price of Rs. 788.80. 

Management Guidance

Krishna Defence & Allied Industries Limited management aims for a strong annual growth of about 30-40 percent for the next 3 to 5 years. Management expects this momentum to come from a rising defence shipbuilding cycle and new product opportunities. Overall, Krishna Defence is confident these drivers will support steady long-term expansion.

Capex

Krishna Defence & Allied Industries Limited plans annual capex of Rs. 5-10 crore, mainly to boost productivity and automation. This focused investment is expected to strengthen operations and support the company’s growth plans.

Order Book

Krishna Defence & Allied Industries Limited has an order book of Rs. 196 crore as of September 30, 2025, with expected H2 inflows of Rs. 100-150 crore. The company also has a tender pipeline of Rs. 100-110 crore awaiting conversion. Management highlights that execution visibility comes from long-term naval programs, making multi-year pipelines more meaningful than quarter-end order snapshots.

Business Mix

Krishna Defence & Allied Industries Limited’s H1 defence product mix is mainly driven by bulb bars, which make up around 65-70 percent of sales. Weld consumables add about 15 percent, while armour steel profiles for the T-90 chassis contribute roughly 20 percent and are growing as the company adds more chassis parts.

Product Portfolio

Krishna Defence & Allied Industries operates across four main business segments such as Defence, Security, Dairy, and Mega Kitchen Equipment. In the defence sector, it manufactures critical components for the Indian Navy and Armed Forces, including shipbuilding steel sections, super alloy weld consumables, and specialised composite doors. In the dairy segment, it produces stainless steel milk cans, bulk milk coolers, solar-powered cooling tanks, and the innovative Robotic Milk Collection Unit. 

The mega kitchen equipment vertical manufactures bulk cooking equipment for organisations preparing large-scale meals, while the homeland security segment produces vehicle barriers, automatic tyre killers, and LED searchlights

Future Outlook

Krishna Defence & Allied Industries Limited is building its largest AUV prototype, with water trials targeted for Dec 2026 and commercial contribution expected from FY27. Its composites JV, VABO, is close to final approvals and should also begin contributing from FY27, targeting an addressable market of around Rs. 100 crore. 

The company is adding new certifications, such as Bureau Veritas and is actively pursuing LRS/IRS approvals, which will help open more commercial shipbuilding opportunities alongside its existing ABS, DNV and BV certifications.

Company Overview

Krishna Defence & Allied Industries Limited was originally formed as a partnership firm in 1997 under the name M/s Krishna Industries and has since evolved into a comprehensive defence and industrial equipment manufacturer. The company has established itself as one of India’s few integrated manufacturers with comprehensive capabilities in designing, developing, and manufacturing a wide range of specialized equipment.

The company operates across the Defence, Security, Dairy, and Mega Kitchen Equipment sectors. The company manufactures shipbuilding steel sections, composite doors, milking equipment, bulk coolers, solar tanks, mega kitchen apparatus, and homeland security products. 

Krishna Defence & Allied Industries Limited serves the Indian Armed Forces, government departments, and dairy organizations with indigenized products meeting international standards, contributing to India’s defence self-reliance and industrial development.

Recent quarter results

Coming into financial highlights, Krishna Defence & Allied Industries Limited’s revenue has increased from Rs. 94 crore in H1 FY25 to Rs. 120 crore in H1 FY26, which has grown by 27.66 percent. The net profit has also grown by 63.64 percent from Rs. 11 crore in H1 FY25 to Rs. 18 crore in H1 FY26. Krishna Defence & Allied Industries Limited’s revenue and net profit have grown at a CAGR of 74.1 percent and 109.76 percent, respectively, over the last two years.

In terms of return ratios, the company’s ROCE and ROE stand at 24.3 percent and 18.6 percent, respectively. Krishna Defence & Allied Industries Limited has an earnings per share (EPS) of Rs. 20.4, and it’s an almost debt-free company.

Written By – Nikhil Naik

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Defence stock with revenue CAGR guidance of up to 40% to keep on your radar appeared first on Trade Brains.