Craftsman Automation , a leading engineering company, has reported a significant increase in its financial performance for the second quarter. The company's results showcase robust growth across key financial metrics.

Financial Highlights

Key Takeaways

Net Profit Surge

Craftsman Automation's net profit for the quarter stood at ₹908.6 crore, marking a substantial 47.3% increase from ₹616.9 crore in the same period last year.

Revenue Growth

The company's revenue saw an impressive rise, reaching ₹2,001 crore compared to ₹1,214 crore in the corresponding quarter of the previous year, representing a 64.8% year-over-year growth.

EBITDA Performance

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) improved to ₹302 crore from ₹193 crore, indicating a 56.5% increase.

Margin Contraction

Despite the overall growth, the EBITDA margin experienced a slight decrease, moving from 15.88% in the previous year to 15.08% in the current quarter.

The strong financial performance of Craftsman Automation reflects the company's ability to capitalize on market opportunities and manage its operations effectively. The significant increase in revenue and net profit suggests robust demand for the company's products and services.

However, the marginal decline in EBITDA margin indicates potential challenges in maintaining profitability levels amidst rapid growth. This could be due to factors such as increased input costs or changes in the product mix.

Craftsman Automation Limited , a prominent player in the Indian manufacturing sector, has made significant progress in its Chennai expansion plans through a strategic acquisition by its wholly-owned subsidiary, DR Axion India Private Limited.

Major Acquisition for Land Procurement

DR Axion India has entered into a Share Purchase Agreement on December 19, 2025, to acquire 100% equity shares of Suprash Developers Private Limited along with its wholly-owned subsidiary, Srikara Technologies Private Limited. This acquisition provides access to crucial land assets for the previously announced Chennai manufacturing plant.

Strategic Land Assets

The acquired Special Purpose Vehicles (SPVs) collectively own 52.83 acres of strategically located industrial land at Araneri Village, Sriperumbudur Taluk, Kancheepuram District. Both companies are primarily engaged in developing, leasing, and licensing of industrial projects, making them ideal vehicles for DR Axion's manufacturing expansion plans.

Original Expansion Plan Context

This acquisition directly supports the company's earlier announced expansion plan for establishing a new manufacturing plant in the Chennai Metropolitan Area with an estimated investment of ₹280.00 crore. The original expansion details include:

Corporate Structure Impact

Upon completion of the transaction, Suprash Developers will become a wholly-owned subsidiary of DR Axion India, while Srikara Technologies will become a step-down subsidiary. Consequently, both entities will fall under Craftsman Automation's corporate umbrella as step-down subsidiaries.

Industry Significance

This acquisition represents a crucial milestone in Craftsman Automation's capacity expansion strategy, addressing the full utilization of its existing Othappai facility in Thiruvallur. The secured land assets provide the necessary foundation for the company's anticipated growth in aluminium products demand across automotive and industrial sectors. The strategic location in Sriperumbudur, known for its robust industrial infrastructure and automotive manufacturing ecosystem, positions the company advantageously for future operations.