This small-cap Defence stock, engaged in designing and manufacturing defence electronics, naval systems, and aerospace components for clients like the Indian Army and Navy, is in focus after the company built an order book that was 2.7 times more than its revenue for FY24.
With a market capitalization of Rs. 1,110.66 crores, the share of Krishna Defence and Allied Industries Limited has reached an intraday high of Rs. 823.95 per equity share, rising nearly 7.89 percent from its previous day’s close price of Rs. 763.70. Since then, the stock has retreated and is currently trading at Rs. 790 per equity share.
Company Overview
Krishna Defence and Allied Industries Limited was established in 1998 and specializes in delivering advanced solutions for the defence and aerospace sectors. The company designs and manufactures defence electronics, naval systems, and aerospace components, catering to clients like the Indian Army, Navy, DRDO, and shipyards.
OrderBook
In the first half of 2025, the company started with an order book of Rs. 186.62 crore. The company received new orders worth Rs. 190.39 crore and completed orders worth Rs. 94.04 crore. By September 30, 2025, the closing order book reached a record high of Rs. 282.97 crore, which is 2.7 times their revenue from 2024.
Most of the orders, worth Rs. 282.1 crore, come from the defence sector, making up approximately 99.7 percent of the total order book, with a small portion of Rs. 0.8 crore (about 0.3 percent) from the Dairy sector. This reflects strong growth in the defence sector and a robust future pipeline for the company.
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Clientele
The company works with major defence clients, including the Indian Army, Indian Navy, Border Security Forces, and the Defence Research & Development Organisation. Other clients include Armoured Vehicles Nigam Limited, Mazagon Dock Shipbuilders, Hindustan Shipyard, Larsen & Toubro, Garden Reach Shipbuilders & Engineers, and Goa Shipyard Limited.
Future Outlook
Krishna Defence and Allied Industries Limited plans to grow at a compounded annual growth rate (CAGR) of over 40 percent for the next 3 to 5 years. The company will develop new defence products with foreign partners, expand production capacity by 100 percent in Halol, Gujarat, to meet defence orders, and focus on creating defence electronics for aerospace.
Financial Highlights
Krishna Defence and Allied Industries Limited’s revenue has increased from Rs. 35 crore in H1 FY24 to Rs. 94 crore in H1 FY25, which has grown by 168.57 percent. The net profit has also grown by 266.67 percent, from Rs. 3 crore in H1 FY24 to Rs. 11 crore in H1 FY25.
In terms of return ratios, the company’s ROCE and ROE should be 16.9 percent and 13.2 percent, respectively. Krishna Defence and Allied Industries Limited has an earnings per share (EPS) of Rs. 13, and its debt-to-equity ratio is 0.11x.
Written By – Nikhil Naik
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