Craftsman Automation Limited , a leading engineering company, has reported a robust financial performance for the first half of the fiscal year, with consolidated sales reaching INR 3,786.00 crores, marking a significant increase from INR 2,365.00 crores in the previous year. The company's growth trajectory and future plans were discussed in detail during a recent earnings conference call.

Strong Segment-wise Performance

The company's performance across its key segments showcases its diversified revenue streams:

Financial Highlights

• EBITDA stood at INR 582.00 crores with margins at 15%
• EBIT margins at 10%
• Net debt-to-EBITDA ratio of 0.94 on a consolidated basis (2.46 annualized)

Operational Updates

Kothavadi Plant

The Kothavadi plant has commenced phase-I operations for engineering products. The company has secured orders worth $100.00 million, with $50.00 million confirmed and the rest in advanced stages of negotiation. Revenue streams for the Powertrain portion are expected to start in 2029.

Sunbeam Business

The Sunbeam business achieved a quarterly run rate of INR 330.00 crores. Management is targeting double-digit EBITDA margins for FY27, with current margins around 6% in Q2.

Aluminum Business

The Hosur plant recently started commercial operations, enhancing capacity utilization in the aluminum business. The company plans to have a total installed capacity of 7.8 million units between Bhiwadi and Hosur plants by Q2 of next year.

Future Outlook and Expansion Plans

Craftsman Automation is positioning itself for significant growth, aligning with the expanding automotive and engineering sectors in India. Key points include:

1. CAPEX Plans: The company plans a CAPEX of around INR 1,000.00 crores for Craftsman, with new investments based on a minimum 20% ROCE threshold.

2. Market Opportunities: Management noted that some customers are looking to expand capacity by almost 50% over the next few years, presenting growth opportunities for Craftsman.

3. Global Manufacturing Hub: India is increasingly seen as a preferred manufacturing destination for multinational companies, especially in sectors like automotive, construction equipment, and power generation.

4. Data Center Business: The company is targeting $100.00 million in revenue from the data center business by 2029-2030, leveraging its expertise in large engine block manufacturing.

5. No Immediate M&A Plans: The company does not foresee any major acquisitions in the next 18 months, focusing instead on organic growth.

Srinivasan Ravi, Chairman and Managing Director, commented on the future outlook: "We are in for a lot of challenging as well as exciting times. The opportunity for growth is quite phenomenal and we are getting very strong enquiries... We are very confident about the future of Craftsman."

As Craftsman Automation continues to capitalize on the growing demand in various engineering sectors, it remains well-positioned to benefit from India's emergence as a global manufacturing hub. The company's strategic investments and diversified portfolio are expected to drive sustainable growth in the coming years.

Craftsman Automation Limited , a diversified engineering company, has announced strong financial results for the second quarter and first half of fiscal year 2026. The company's performance showcases significant growth across key financial metrics, underlining its strong position in the automotive and industrial engineering sectors.

Financial Highlights

Craftsman Automation has demonstrated robust growth in the second quarter of FY26, with consolidated revenue reaching ₹2,002.00 crores, marking a substantial 56.00% year-over-year increase from ₹1,284.00 crores in Q2 FY25. The company's EBITDA for Q2 FY26 stood at ₹312.00 crores, reflecting a 47.00% growth compared to the same period last year.

The half-yearly performance was equally impressive, with revenue for H1 FY26 at ₹3,786.00 crores, up 46.00% from ₹2,595.00 crores in H1 FY25. The EBITDA for the first half of FY26 reached ₹582.00 crores, showing a 45.00% year-over-year growth.

Business Segment Performance

Craftsman Automation operates across three main business segments:

1. Aluminium Products: This segment emerged as the largest contributor, generating ₹2,275.00 crores in H1 FY26.
2. Powertrain: The second-largest segment, contributing ₹1,034.00 crores in H1 FY26.
3. Industrial & Engineering: This segment added ₹476.00 crores to the revenue in H1 FY26.

Company Overview

Craftsman Automation is a well-established player in the engineering sector, with a strong focus on the automotive, industrial, and engineering sectors. The company boasts:

• 24 vertically integrated manufacturing facilities across 9 states in India
• 1 manufacturing plant in Germany
• A total built-up area of over 3.4 million sq. ft.
• Diverse end-user sectors including commercial vehicles, passenger vehicles, two-wheelers, farm equipment, and off-highway vehicles

The company's strategic locations and end-to-end solution capabilities have positioned it well to serve marquee domestic and global OEMs, as well as component manufacturers.

Market Performance

Since its IPO on March 25, 2021, Craftsman Automation has seen significant market appreciation. The company's market capitalization has grown from ₹2,996.00 crores at listing to ₹16,186.00 crores as of September 30, 2025, reflecting strong investor confidence in its business model and growth prospects.

Craftsman Automation's robust financial performance and strategic positioning in key engineering segments underscore its potential for continued growth. The company's ability to capitalize on diverse market opportunities and its focus on vertically integrated manufacturing capabilities contribute to its success in the competitive engineering landscape.