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CRAFTSMAN - Craftsman Auto

📊 NSE: CRAFTSMAN 🏢 Auto Ancillaries 📅 Last Updated: 12/13/2025 21:13

📢 Recent Corporate Announcements

Craftsman Automation Exits Investment in RC Green Powers Private Limited

🟡 NEUTRAL ⭐ 3/10

OTHER 📅 11 Apr 2026, 09:36 AM

Craftsman Automation Limited has announced its complete exit from its equity investment in RC Green Powers Private Limited (RCGPPL). This investment was originally part of a Group Captive Scheme, typically used for sourcing renewable energy for industrial operations. As of April 11, 2026, the company holds zero equity shares or interest in the entity. Management has explicitly stated that this divestment will not have any material impact on the company's financial position or operational performance.

Complete exit from equity investment in RC Green Powers Private Limited (RCGPPL).
Investment was previously held under the Group Captive Scheme for power sourcing.
The company now holds 0% equity or interest in RCGPPL as of the current date.
Management confirms no material impact on the company's operations or financial standing.

💡 This is a routine administrative update regarding power sourcing arrangements and does not affect the company's core business fundamentals. Investors should continue to monitor the company's primary automotive and industrial engineering segments.

Craftsman Automation Receives GST Demand and Penalty of Over Rs 62.89 Lakh

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 31 Mar 2026, 05:08 PM

Craftsman Automation has received an order from the CGST Faridabad authority for the financial year 2019-20. The order includes a tax demand of Rs. 11.07 lakh along with an equivalent penalty of Rs. 11.07 lakh due to purported inadmissible Input Tax Credit (ITC). Furthermore, a demand of Rs. 40.75 lakh has been raised as interest for the alleged wrongful utilization of ITC. The company intends to file an appeal and does not expect any material impact on its financial or operational performance.

Tax demand of Rs. 11,07,211 raised under Section 74 of the CGST Act, 2017.
Penalty of Rs. 11,07,211 imposed, matching the tax demand amount.
Additional interest demand of Rs. 40,74,968 for purported wrongful availment of ITC.
Company is evaluating the order and plans to take legal recourse through an appeal.
Management states no material impact is foreseen on the company's financials or operations.

💡 No immediate action is required as the total demand is relatively small compared to the company's annual turnover. Investors should treat this as a routine tax dispute in the normal course of business.

Craftsman Automation Increases Stake in RC Green Powers to 3.51% for Captive Wind Power

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 27 Mar 2026, 05:55 PM

Craftsman Automation has made a further equity investment of Rs. 39,500 in RC Green Powers Private Limited (RCGPPL). This transaction involves the acquisition of 3,950 equity shares, representing a 2.63% stake in the entity. Following this investment, the company's total shareholding in RCGPPL has increased to 3.51%. The move is specifically designed to comply with the Group Captive Scheme for wind power procurement under the Electricity Act, 2003.

Invested Rs. 39,500 to acquire 3,950 equity shares of RC Green Powers Private Limited.
Acquired an additional 2.63% stake, bringing the total equity shareholding to 3.51%.
Investment is aimed at securing wind power under the Group Captive Scheme.
Ensures continued compliance with the ownership and consumption criteria of the Electricity Act, 2003.

💡 This is a minor regulatory update for operational compliance and has no material impact on the company's financials. Investors should continue to monitor the company's core automotive and industrial engineering segments.

Craftsman Automation Extends Asset Sale Timeline to June 2026 for INR 28 Cr Deal

🟡 NEUTRAL ⭐ 6/10

M&A 📅 27 Mar 2026, 05:47 PM

Craftsman Automation's subsidiary, Sunbeam Lightweighting Solutions, has extended the completion deadline for the sale of its piston manufacturing assets to Shriram Pistons & Rings Limited (SPRL). The total deal value is set at INR 28 Crores, of which INR 10 Crores was already received in December 2025. The remaining INR 18 Crores will now be collected in multiple tranches by the revised long stop date of June 30, 2026. This extension allows for a phased transfer of identified plant and machinery.

Total aggregate consideration for the asset sale is INR 28 Crores plus applicable GST
Completion deadline (long stop date) extended from March 31, 2026, to June 30, 2026
INR 10 Crores already received following the first tranche completion in December 2025
Remaining INR 18 Crores to be received in cash upon completion of subsequent tranches
Transaction involves the piecemeal sale of plant and machinery from the Piston Manufacturing Business

💡 Investors should view this as a minor administrative delay in a non-core asset disposal. The transaction remains on track and continues to provide liquidity through the phased sale of manufacturing equipment.

Craftsman Automation to Close Trading Window from April 1, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 24 Mar 2026, 04:57 PM

Craftsman Automation Limited has announced the closure of its trading window starting April 1, 2026, in compliance with SEBI insider trading regulations. This closure is a standard procedure ahead of the declaration of the audited financial results for the quarter and financial year ending March 31, 2026. The window will remain closed for all designated persons and their relatives until 48 hours after the results are made public. This is a routine regulatory filing and does not indicate any fundamental change in the company's operations.

Trading window closure starts from Wednesday, April 1, 2026.
Closure pertains to the audited financial results for the quarter and year ending March 31, 2026.
The window will reopen 48 hours after the official announcement of the financial results.
Restriction applies to Directors, Designated Persons, Connected Persons, and their immediate relatives.

💡 No immediate action is required as this is a routine compliance filing. Investors should monitor the company's upcoming announcement for the specific date of the Q4 and FY26 earnings release.

Craftsman Automation Receives Income Tax Order Disallowing Rs 5.30 Crore for AY 2022-23

🟡 NEUTRAL ⭐ 4/10

REGULATORY 📅 21 Mar 2026, 02:07 PM

The Principal Commissioner of Income Tax, Coimbatore, has issued an order under Section 263 directing a disallowance of Rs. 5.30 Crore for the Assessment Year 2022-23. While the specific tax liability will crystallize after a subsequent order from the Assessing Officer, the company intends to challenge this legally. Craftsman Automation has stated that they do not expect any material impact on operations or financials. The company also noted that the obligation has been fully discharged, suggesting limited immediate cash flow risk.

Order issued by PCIT Coimbatore under Section 263 of the Income Tax Act, 1961.
Directs Assessing Officer to disallow Rs. 5.30 Crore for Assessment Year 2022-23.
Company plans to take legal recourse as they believe the disallowance is unsustainable.
Management foresees no material impact on financial or operational activities.

💡 Investors should monitor the outcome of the legal challenge, but the current impact is minimal given the small quantum of the disallowance relative to the company's scale. No immediate action is required.

Craftsman Automation Ratings Reaffirmed at AA-; Subsidiary Sunbeam Upgraded to BBB+

🟢 POSITIVE ⭐ 8/10

REGULATORY 📅 20 Mar 2026, 11:19 PM

CRISIL has reaffirmed Craftsman Automation's (CAL) long-term rating at 'AA-/Stable' and upgraded its subsidiary Sunbeam Lightweighting Solutions (SLSL) to 'BBB+'. The company reported a robust 48% growth in 9M FY26 consolidated revenue to ₹5,843 crore, primarily led by a 72% surge in the aluminum segment. While debt is expected to rise to ₹3,500 crore by FY26-end due to ₹1,200 crore in capex, management expects Debt/EBITDA to improve below 2.5x by next fiscal. The board has also approved the merger of subsidiaries DRAIL and SLSL into CAL effective April 1, 2026, to consolidate the aluminum business.

9M FY26 consolidated revenue increased to ₹5,843 crore from ₹3,941 crore in the previous year.
Sunbeam (SLSL) ratings upgraded to BBB+/A2 with a Watch Positive outlook following operational improvements.
Aluminum segment now accounts for ~60% of total revenues, significantly diversifying the auto-engineering portfolio.
Planned capex of ₹1,200 crore for FY26 focused on modernization and greenfield facilities.
Consolidated operating margins maintained at ~15.8% for 9M FY26 despite integration costs of new acquisitions.

💡 Investors should take confidence in the credit rating upgrade of the subsidiary and the planned consolidation of the aluminum business. Key monitors include the successful monetization of the Gurgaon land parcel and the achievement of 8-10% margins at Sunbeam to accelerate deleveraging.

Craftsman Automation to Consolidate Aluminium Business via Merger of Sunbeam and DR Axion

🟢 POSITIVE ⭐ 8/10

M&A 📅 11 Mar 2026, 04:43 PM

Craftsman Automation has approved a phased internal restructuring to consolidate its Aluminium Products business into a single entity. The plan involves merging its material wholly-owned subsidiaries, DR Axion India Limited (FY25 turnover: ₹1,298.52 Cr) and Sunbeam Lightweighting Solutions Limited (FY25 turnover: ₹1,237.46 Cr). Two step-down subsidiaries holding land parcels will also be merged to unify asset ownership and manufacturing operations. This restructuring aims to improve operational efficiency and create a stronger balance sheet for the aluminium segment without changing the parent company's shareholding pattern.

Consolidation of two major subsidiaries with combined FY25 turnover exceeding ₹2,500 crore
Merger includes Suprash Developers and Srikara Technologies to unify land and infrastructure ownership
Share exchange ratio set at 1 share of Sunbeam (FV ₹1) for every 1 share of DR Axion (FV ₹10) post-capital reorganization
Strategic move to capitalize on high-growth Aluminium Components industry through a streamlined structure
Transaction is an internal restructuring of 100% owned subsidiaries and does not impact listed entity shareholding

💡 Investors should view this as a positive move toward corporate simplification and operational synergy which could improve long-term margins. Monitor the NCLT approval process and the subsequent integration of the aluminium business units.

Craftsman Automation to Consolidate Aluminium Business via Multi-Subsidiary Merger

🟢 POSITIVE ⭐ 8/10

M&A 📅 11 Mar 2026, 04:40 PM

Craftsman Automation has approved a phased internal restructuring to consolidate its Aluminium Products business into a single entity. The scheme involves merging two material subsidiaries, DR Axion India (FY25 turnover: ₹1,298.52 Cr) and Sunbeam Lightweighting Solutions (FY25 turnover: ₹1,237.46 Cr). This consolidation aims to create a unified operating entity with a combined pro-forma turnover exceeding ₹2,500 Cr, streamlining asset ownership and enhancing operational efficiency. The merger also includes step-down subsidiaries holding land parcels to facilitate seamless expansion of manufacturing facilities.

Merger of DR Axion India (₹1,298.52 Cr turnover) and Sunbeam Lightweighting (₹1,237.46 Cr turnover) to form a focused aluminium entity.
Consolidation of step-down subsidiaries Suprash Developers and Srikara Technologies into DR Axion to unify land and infrastructure ownership.
Share exchange ratio fixed at 1 equity share of Sunbeam (FV ₹1) for every 1 equity share of DR Axion (FV ₹10) post-capital reorganization.
Combined entity will possess a stronger balance sheet and broader manufacturing base to capitalize on growth in the aluminium components industry.
The scheme is subject to approvals from the NCLT, shareholders, and other regulatory authorities.

💡 Investors should view this restructuring positively as it simplifies the corporate structure and is likely to improve margins through operational synergies. Monitor the NCLT approval timeline for the final implementation of the merger.

Craftsman Automation to Evaluate Internal Restructuring of Aluminium Products Business

🔵 WATCH ⭐ 7/10

M&A 📅 13 Feb 2026, 05:36 PM

The Board of Craftsman Automation has approved the initiation of an evaluation process for the internal restructuring and consolidation of its aluminium products business. This plan involves consolidating the aluminium operations of the parent company and its wholly-owned subsidiaries into a single wholly-owned subsidiary level. The restructuring may be executed through a scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013. This move is aimed at streamlining operations and enhancing management focus within the aluminium segment.

Board approved evaluation of internal restructuring for the aluminium products business on February 13, 2026.
Consolidation aims to bring parent aluminium operations and wholly-owned subsidiaries under a single entity.
Potential use of a scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013.
The evaluation process will determine the final mode of restructuring and is subject to further board approval.
The board meeting was conducted efficiently, lasting 15 minutes from 5:00 P.M. to 5:15 P.M.

💡 Investors should monitor upcoming announcements for the final restructuring plan and its impact on operational margins. No immediate action is required as the proposal is currently in the evaluation phase.

Craftsman Automation to Evaluate Restructuring of Aluminium Products Business

🔵 WATCH ⭐ 6/10

BOARD_MEETING 📅 13 Feb 2026, 05:29 PM

The Board of Craftsman Automation has approved the initiation of an evaluation process for the internal restructuring and consolidation of its aluminium products business. The plan involves consolidating the company's aluminium division and its wholly owned subsidiaries into a single wholly owned subsidiary. This restructuring may be executed through a scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013. The final decision will be taken by the Board after the evaluation process is complete, aiming to streamline operations within this specific segment.

Board approved evaluation of internal restructuring for the aluminium products business on February 13, 2026.
Consolidation aims to bring the parent's aluminium division and subsidiaries under one wholly owned entity.
Restructuring may involve a scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013.
The move is intended to consolidate operations and potentially improve management focus on the aluminium segment.

💡 Investors should monitor future announcements regarding the final structure and potential tax or operational synergies of this consolidation. Since the process is in the evaluation stage, no immediate portfolio changes are necessary.

Craftsman Automation Q3 FY26: Shoolagiri Startup Impacts Margins; Sunbeam EBITDA to Hit 10% in FY27

🔵 WATCH ⭐ 8/10

EARNINGS 📅 02 Feb 2026, 04:59 PM

Craftsman Automation reported a temporary dip in standalone aluminium margins due to startup costs at the new Shoolagiri plant, which is expected to ramp up by Q2 FY27. The alloy wheel segment is currently operating below 50% capacity but targets 60-70% utilization and high single-digit margins by Q3 FY27. Management has provided strong guidance for Sunbeam, expecting EBITDA margins to rise from 7% to 10% in the next fiscal year. The Industrial & Engineering segment remains a bright spot with sustainable margin expansion and a strong #2 market position in racking systems.

Standalone aluminium margins impacted by operational losses at the new Shoolagiri plant during its startup phase.
Alloy wheel plant utilization currently below 50% of 5.8 million capacity, with a target of 60-70% by Q3 FY27.
Sunbeam EBITDA margins projected to reach 10% in FY27 from the current 7% level, with an exit rate above 10%.
Powertrain segment benefiting from a shift toward higher engine capacities (400+ HP) and recovery in the tractor market.
Aluminium prices reached $3,050 per ton, the highest since 2022, creating optical pressure on percentage margins.

💡 Investors should monitor the Shoolagiri plant ramp-up and alloy wheel utilization as primary catalysts for margin recovery in FY27. The stock remains a play on the premiumization of the CV/Tractor segments and the successful turnaround of the Sunbeam acquisition.

Craftsman Automation Releases Q3 FY26 Earnings Call Audio Recording

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 29 Jan 2026, 05:48 PM

Craftsman Automation has officially released the audio recording of its earnings conference call held on January 29, 2026. The call focused on the company's unaudited financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure is part of the mandatory regulatory requirements under SEBI (LODR) Regulations. Investors can access the recording via the company's website to hear management's detailed commentary on operational performance and future outlook.

Earnings conference call conducted on January 29, 2026, at 4:00 PM IST
Covers financial results for the quarter and nine months ended December 31, 2025
Recording made available in compliance with Regulation 30 and 46 of SEBI LODR
Direct link to the audio file provided for public and institutional investor access

💡 Investors should listen to the recording to understand management's perspective on margin trends and demand in the automotive and industrial segments. This is a routine but essential resource for fundamental analysis.

Craftsman Automation 9M FY26 Revenue Up 48% to ₹5,843 Cr; PAT Doubles to ₹268 Cr

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 29 Jan 2026, 11:23 AM

Craftsman Automation delivered a robust performance for the nine months ended December 2025, with consolidated revenue reaching ₹5,843 crores, a 48% increase year-on-year. Net profit (PAT) for the 9M period doubled to ₹268 crores, supported by strong growth across all business segments, particularly Aluminium Products which saw a 72% revenue jump. While recent acquisitions like DR Axion and Sunbeam have significantly boosted the top line, the company also improved its quarterly EBITDA margin to 17% in Q3 FY26. Strategic expansions into Germany and new greenfield projects in Ludhiana and Sriperumbudur position the company for sustained long-term growth.

9M FY26 Revenue grew 48% YoY to ₹5,843 crores, with EBITDA rising 51% to ₹922 crores
Consolidated PAT for 9M FY26 surged 100% to ₹268 crores compared to ₹134 crores in the previous year
Aluminium Products segment revenue grew 72% to ₹3,479 crores in 9M FY26, becoming the largest business vertical
Q3 FY26 EBITDA margins improved to 17% from 13% in the same quarter of the previous year
Market capitalization reached ₹18,261 crores as of December 31, 2025, reflecting significant value creation

💡 The company shows strong execution in integrating acquisitions and scaling the high-growth aluminium light-weighting segment. Investors should maintain a positive outlook while monitoring the debt-to-equity ratio and the ramp-up of new greenfield facilities.

Craftsman Automation to Set Up New Ludhiana Plant with ₹60 Crore Investment

🟢 POSITIVE ⭐ 7/10

EXPANSION 📅 28 Jan 2026, 01:29 PM

Craftsman Automation's Board has approved the establishment of a new manufacturing facility in Ludhiana, Punjab, to enhance regional service efficiency. The project involves an estimated investment of ₹60 Crores, which will be financed 90% through term loans and 10% via internal accruals. This expansion is expected to add 5% to the company's Powertrain capacity at peak levels within a timeline of 9 to 12 months. Currently, the company's Powertrain segment operates at an average capacity utilization of 75%.

Estimated investment of ₹60 Crores for the new facility in Ludhiana, Punjab
Proposed capacity addition of 5% to the Powertrain segment at peak levels
Project completion timeline estimated between 9 to 12 months
Financing structure consists of 90% term loans and 10% internal accruals
Current Powertrain segment capacity utilization stands at an average of 75%

💡 Investors should monitor the timely execution of this plant as it strengthens the company's regional footprint and adds incremental capacity. The high debt-to-equity ratio for this specific project (90% loan) is worth watching in the context of the overall balance sheet.

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💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 3,786 Cr, a 60.1% increase from INR 2,365 Cr in H1 FY25. Segment performance: Aluminum Products grew 105% to INR 2,275 Cr (driven by SLSPL consolidation), Powertrain grew 22% to INR 1,034 Cr, and Industrial Engineering grew 17% to INR 476 Cr.

Geographic Revenue Split

The company operates primarily in India with a strategic presence in Germany through Craftsman Germany. In the Powertrain segment, Craftsman Germany contributes approximately 15% of segment revenue, while Indian operations account for 85%.

Profitability Margins

Consolidated operating margins declined from 19.9% in FY24 to 14.9% in FY25 due to the consolidation of lower-margin SLSPL and gestational losses from new facilities. Net profit after tax for FY25 was INR 12,797 Lakhs for major subsidiaries, while consolidated PBT fell 39.4% YoY to INR 26,965 Lakhs.

EBITDA Margin

EBITDA for H1 FY26 stood at INR 582 Cr, representing a 15.4% margin. This is a compression from historical levels of >20% seen prior to FY25, primarily due to a change in product mix and the inclusion of Sunbeam (SLSPL) which operated at a 6% margin in Q2 FY26.

Capital Expenditure

The company incurred a total spend of approximately INR 3,150 Cr between FY23 and FY25 on capital expenditure and acquisitions. Specifically, in FY25, the purchase of property, plant, and equipment amounted to INR 988.78 Cr, up 57.2% from INR 629.05 Cr in FY24.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with a gearing ratio of 0.78 times as of March 31, 2025. CRISIL monitors debt/EBITDA metrics, with a target to sustain below 1.2 times; a rise above 2.75 times would trigger a downward rating action.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Aluminum (for die-casting) and Iron/Steel (for foundries and machining). Cost of materials consumed in FY25 was INR 3,29,673 Lakhs, representing 57.9% of total revenue.

Import Sources

Not explicitly disclosed in the provided documents, though the company operates foundries in India and has operations in Germany for international sourcing.

Capacity Expansion

The company operates 2 cast iron foundries for large parts and 5 plants under the Sunbeam (SLSPL) acquisition. Recent capex of INR 3,150 Cr (FY23-25) was directed toward newly commissioned facilities and the acquisition of DR Axion and SLSPL.

Raw Material Costs

Raw material costs increased 30.7% YoY to INR 3,29,673 Lakhs in FY25. The company uses cost-optimization measures and wastage reduction to manage the 57.9% material-to-revenue ratio.

Manufacturing Efficiency

The company focuses on high machining operations and niche products. Efficiency is currently impacted by 'lower absorption of fixed costs' at new facilities, leading to the margin drop to 14.9% in FY25.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through the turnaround of SLSPL (targeting >10% margins from the current 5-6%), synergy with DR Axion to reduce overheads, and increasing revenue offtake from newly commissioned facilities. The company is also focusing on import substitution for critical powertrain components.

Products & Services

Cylinder blocks, cylinder heads, camshafts, transmission parts, bearing caps, turbochargers, and aluminum die-cast components for two-wheelers and passenger vehicles.

Brand Portfolio

CRAFTSMAN, DR Axion, Sunbeam (SLSPL), Craftsman Germany.

New Products/Services

The company is expanding its product basket in the Aluminum segment to include more two-wheeler and passenger vehicle components through the Sunbeam acquisition.

Market Expansion

Expansion is focused on increasing the customer base by leveraging Sunbeam's existing relationships and expanding the reach of the Aluminum die-casting business in India.

Strategic Alliances

The company operates a joint venture which contributed a share of profit of INR 100 Lakhs in FY25.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward lightweighting (benefiting the Aluminum segment) and import substitution. The company is positioning itself as a high-end machining partner to capture these shifts.

Competitive Landscape

Competes in the fragmented auto-component and machining space, with a focus on higher-margin, technically demanding components compared to standard casting players.

Competitive Moat

The moat is built on 35+ years of expertise in complex machining of cylinder blocks and heads. This technical capability is difficult to replicate and allows for 'import substitution' of critical parts.

Macro Economic Sensitivity

Highly sensitive to the Indian automotive cycle, particularly Commercial Vehicles and Tractors, which directly impacts the Powertrain segment's volume and fixed cost absorption.

Consumer Behavior

Shift in demand toward passenger vehicles and two-wheelers is being addressed through the Sunbeam and DR Axion acquisitions.

Geopolitical Risks

Exposure to international markets through Craftsman Germany and global supply chains for automotive components.

⚖️ Regulatory & Governance

Industry Regulations

Complies with Ind AS 103 for business combinations and Ind AS 110 for consolidated financial statements. Operations are subject to standard automotive manufacturing and environmental norms.

Taxation Policy Impact

The effective tax rate is approximately 27.3% based on FY25 income tax paid of INR 7,362 Lakhs against PBT of INR 26,965 Lakhs.

Legal Contingencies

The company manages accounting for business combinations as a 'Key Audit Matter,' involving fair valuation of contingent consideration and acquired assets.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'gestational losses' from new facilities and the ability to improve SLSPL's margins from 5% to >10%, which could impact consolidated profitability by 1-2%.