Craftsman Automation has approved the establishment of a new manufacturing facility, Hosur Unit - 3, in Tamil Nadu to address near-capacity utilization levels in its Aluminium Products division. The Board of Directors sanctioned the project on July 29, 2026, following a strong Q1FY26 performance where net profit surged 116% to ₹1,505.5 crore. This expansion is critical for meeting incremental demand from automotive OEM customers in Southern India, where existing capacity utilization stands at approximately 85%.

The approval was disclosed pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 issued on July 11, 2023, as updated on January 30, 2026. The strategic move aims to enhance operational efficiency and improve logistics by locating the unit closer to key original equipment manufacturers (OEMs).

Project Details and Financing

The new facility will be located at SF. No. 11 & 28, Komaranapalli Village, Denkanikottai Taluk, Krishnagiri District, Tamil Nadu – 635114. The total estimated investment is ₹250 crore, split into two phases. Phase I requires an estimated ₹100 crore, while Phase II involves ₹150 crore.

The project is proposed to be financed substantially through term loans, with the balance funded via internal accruals. Management expects the facility to be commissioned within 6–8 months, subject to receipt of requisite approvals and completion of project execution activities.

Q1FY26 Financial Context

The capacity expansion follows a robust start to FY26, with consolidated revenue from operations jumping 36.3% year-on-year to ₹24,315.8 crore. EBITDA margin expanded to 15.8% from 14.85% in Q1FY25, driven by operating leverage across key segments. The Aluminium Products segment, which contributed ₹14,793.4 crore in revenue, remains the largest contributor, highlighting the immediate need for additional production lines to sustain growth momentum.

Strategic Rationale

Craftsman Automation currently operates aluminium products manufacturing facilities in Southern India, catering primarily to leading two-wheeler and passenger vehicle OEMs. With existing capacities nearing optimal utilization levels, the Board identified a need for additional infrastructure to support future business growth. The proposed location provides strategic proximity to key OEM customers, reducing logistics costs and improving supply chain responsiveness.

What the Numbers Show

The decision to invest ₹250 crore in new capacity underscores management’s confidence in sustained demand growth, particularly in the two-wheeler and passenger vehicle segments. With existing utilization at 85%, the risk of order leakage due to capacity constraints is high. The phased approach allows for capital efficiency, while the reliance on term loans suggests a balanced approach to leverage, supported by the strong cash flows generated in Q1FY26. The rapid commissioning timeline of 6–8 months indicates that land and preliminary approvals are likely already in place, minimizing execution risk.

Craftsman Automation has rescheduled its earnings conference call for the quarter ended June 30, 2026. The company announced that the timing of the call regarding its Unaudited Standalone and Consolidated Financial Results has been moved from 4:00 PM IST to 3:30 PM IST on Thursday, July 30, 2026. This adjustment ensures investors can access management commentary on the latest financial performance with a slight change in schedule.

The rescheduling was communicated pursuant to Regulation 30 read with Part A of Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory filing references an earlier intimation dated July 10, 2026, which had originally set the conference call for 4:00 PM IST. The company notified both the Bombay Stock Exchange and the National Stock Exchange of India Limited of this change.

Conference Call Details

Investors and analysts should note that while the start time has changed, all other arrangements for the conference call remain identical to those communicated in the July 10 letter. The dial-in numbers and registration links provided in the initial announcement are still valid and active for the rescheduled slot.

Shainshad Aduvanni, Company Secretary & Compliance Officer of Craftsman Automation Limited, signed the disclosure dated July 28, 2026. The company requested the exchanges to disseminate this updated information on their respective websites to ensure timely access for shareholders and market participants.