Craftsman Automation, in its recent earnings call for the quarter and financial year ended 31st March 2026, emphasized its double-digit revenue growth trajectory, targeting mid-teen growth for FY ’27. Management highlighted ongoing restructuring in the aluminum division to improve margins, the operational status of new alloy wheel projects, and a cautious approach toward future capital expenditure while focusing on deleveraging the balance sheet.
Strategic Focus on Aluminum Business
Management provided updates on its ambition to scale the aluminum business toward a $1 billion revenue target over the next 2 to 3 years. The company is actively rationalizing its aluminum portfolio by exiting unviable products and low-margin customer segments. To streamline operations and capture synergies, the company is moving toward consolidating its subsidiary entities, including Sunbeam and DR Axion, aiming for greater efficiency and improved competitiveness.
Operational Performance and Expansion
The alloy wheel project has reached an annualized exit run rate of approximately 3 million wheels as of March 2026. While the Bhiwadi plant remains fully operational, the Shoolagiri facility is still in its ramp-up phase. Management noted that while capacity utilization stands at roughly 70% to 80% for key divisions, future expansions are being evaluated based on current order inflows and the need to maintain sustainable, value-added production models.
Financial Outlook and Capital Management
Regarding financial stability, the company is prioritizing deleveraging, with plans to reduce its net debt to EBITDA ratio to below 2.0 within the current fiscal year and further toward 1.5 thereafter. Despite inflationary pressures on manpower and input costs, the management expects that high investments in advanced equipment will yield long-term productivity gains. Future capex decisions will be finalized in September 2026, allowing the company to adapt to changing market demands and order visibility.
Source: BSE
