Craftsman Automation has announced robust financial performance for the third quarter, showcasing significant growth in profitability. The company's consolidated net profit reached ₹1.1 billion, marking a substantial improvement from the previous year's corresponding period.

Financial Performance Overview

The company's Q3 results demonstrate strong operational execution and business momentum. The financial metrics highlight the company's ability to generate substantial returns during the quarter.

Year-on-Year Growth Analysis

The comparison with the previous year's third quarter results reveals the company's significant progress in profitability. The substantial increase in consolidated net profit from ₹129 million to ₹1.1 billion reflects strong business performance and operational improvements.

Business Performance Indicators

The quarterly results indicate positive momentum in the company's operations. The financial performance suggests effective management strategies and favorable market conditions contributing to the improved profitability metrics.

The strong Q3 performance positions Craftsman Automation favorably, with the consolidated net profit figures demonstrating the company's capacity for substantial growth and operational excellence during the reporting period.

Craftsman Automation Limited has received an adverse ruling in its GST appeal case, with tax authorities upholding a significant demand of ₹962.89 lakhs. The Commissioner (Appeals), Gurugram delivered the order on December 30, 2025, which the company received on January 14, 2026.

GST Appeal Decision Details

The appellate authority has upheld both the tax demand and penalty imposed by the Joint Commissioner of CGST, Faridabad. The ruling maintains the original assessment that resulted in substantial financial implications for the company.

Nature of GST Dispute

The dispute centers on valuation of consideration for certain services and related processes undertaken by the company. The assessment covers an extended period spanning from 2017-18 to 2023-24, indicating a comprehensive review of the company's GST compliance practices across multiple financial years.

The original order was passed by the Joint Commissioner of CGST, Faridabad, against which Craftsman Automation had filed an appeal. However, the appellate authority has now rejected the company's contentions and upheld the lower authority's decision in its entirety.

Regulatory Compliance and Disclosure

In accordance with SEBI LODR Regulations, the company has filed detailed disclosures with stock exchanges. The regulatory filing, submitted pursuant to Regulation 30 read with Para A of Part A of Schedule III, provides comprehensive details about the appellate order and its implications.

Company's Response and Next Steps

Craftsman Automation has maintained its position regarding GST compliance throughout the proceedings. The company stated it has consistently complied with all applicable GST requirements, including those related to the disputed matter.

The management has indicated its intention to pursue further legal remedies by filing an appeal against the Commissioner (Appeals) order. The company continues to contest the valuation methodology applied by tax authorities while maintaining that its GST practices were compliant.

Financial and Operational Impact

Despite the substantial amount involved, Craftsman Automation's management has assessed that the order will not materially impact the company's operations. The company stated it does not foresee any material impact on financials, operations, or other activities due to the appellate order.

This assessment suggests the company either has adequate provisions for such contingencies or believes it has strong grounds for success in higher appellate forums. The company's confidence in its compliance practices and decision to pursue further appeals indicates management's belief in the merits of its case.