Craftsman Automation announced its unaudited financial results for the quarter and half-year ended September 30, 2025. Sales reached INR 3,786 crores for H1 FY26, with significant contributions from the Powertrain (INR 2,034 crores) and Aluminium Products (INR 2,275 crores) segments. EBITDA stood at INR 582 crores, and the company anticipates continued growth, driven by expansion plans and increasing demand across key sectors.
Financial Performance Overview
Craftsman Automation has released its unaudited financial results for Q2 FY26, showcasing substantial growth and strategic advancements. Key highlights from the announcement include:
- H1 FY26 Sales: INR 3,786 crores compared to INR 2,365 crores in the previous year.
- EBITDA: Stood at INR 582 crores.
Segmental Highlights
The company experienced robust performance across its key business segments:
- Powertrain: Contributed INR 2,034 crores in sales.
- Aluminium Products: Generated INR 2,275 crores in sales.
- Industrial Engineering: Recorded INR 476 crores in sales.
EBITDA contributions by segment:
- Powertrain: INR 236 crores
- Aluminium Products: INR 351 crores
- Industrial Engineering: INR 32 crores
Financial Metrics
Key financial metrics reflect a strong financial position:
- Net Debt to EBITDA: 0.94 on a consolidated basis.
- EBITDA Margins: Approximately 15%.
- EBIT Margins: Approximately 10%.
- ROC Annualized: 15%.
Strategic Outlook and Expansion
Craftsman Automation is strategically positioned for future growth, with capacity expansions and a focus on meeting increasing customer demand. The company is closely monitoring market dynamics and investing in projects that align with its strengths and scalability.
Kothavadi Plant Update
The Kothavadi plant is currently operational at the phase-I level, focusing on engineering products. The Powertrain segment for stationary engines is expected to commence revenue generation in 2029. Order book for the plant is approximately $100 million, with a significant portion already secured and in development phases.
DR Axion CAPEX
Craftsman Automation is proceeding with a CAPEX of INR 280 crores for DR Axion to expand capacity and address increasing customer orders. This expansion will also enable the company to cater to global demands and strengthen its presence in the automotive hub of Chennai.
Sunbeam Business
Sunbeam’s quarterly run rate is INR 330 crores, with efforts underway to improve EBITDA margins to double-digit figures by FY27. Restructuring and operational efficiencies are expected to contribute to enhanced profitability.
Debt Reduction Plans
The company plans to reduce debt by selling land, with a target of approximately INR 350 crores. The sale process is expected to be completed by the middle of the next financial year.
Data Center Opportunities
Craftsman Automation is targeting $100 million in revenue from the data center segment by 2029/2030. A significant portion of this target is supported by existing orders and advanced negotiations with customers.
Source: BSE
