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CRAFTSMAN - Craftsman Auto

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

📢 Recent Corporate Announcements

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.

Craftsman Automation Q3 Net Profit Jumps to ₹107 Cr; Revenue Up 30% YoY; New Ludhiana Plant Approved

🟢 POSITIVE ⭐ 9/10

EARNINGS 📅 28 Jan 2026, 01:18 PM

Craftsman Automation reported a robust performance for Q3 FY26, with consolidated revenue growing 30.5% YoY to ₹2,057 crore. Net profit saw a massive turnaround, reaching ₹107.1 crore compared to just ₹12.3 crore in the year-ago period. The Aluminium Products segment emerged as the primary growth driver, contributing over 58% of total revenue. Furthermore, the company announced a strategic expansion with a new manufacturing facility in Ludhiana, Punjab, to enhance its production capabilities.

Consolidated Revenue from operations grew 30.5% YoY to ₹2,05,728 lakhs in Q3 FY26.
Net Profit surged to ₹10,711 lakhs in Q3 FY26 from ₹1,233 lakhs in Q3 FY25.
Aluminium Products segment revenue stood at ₹1,20,335 lakhs, significantly outperforming other segments.
Board approved the establishment of a new manufacturing plant in Ludhiana, Punjab.
Subsidiary DR Axion India acquired Suprash Developers for ₹14,585 lakhs during the quarter.

💡 The company is showing strong operational leverage and aggressive expansion through both organic (Ludhiana plant) and inorganic (DR Axion acquisition) routes. Investors should maintain a positive outlook given the significant turnaround in profitability and growth in the high-margin Aluminium segment.

Craftsman Automation Q3 Net Profit Surges to ₹110.5 Cr; Revenue Up 30.5% YoY

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 28 Jan 2026, 01:14 PM

Craftsman Automation reported a robust performance for the quarter ended December 31, 2025, with consolidated revenue growing 30.5% YoY to ₹2,057.3 crore. Net profit witnessed a massive turnaround, reaching ₹110.5 crore compared to a low base of ₹12.2 crore in the previous year's quarter. The Aluminium Products segment continues to be the primary growth engine, contributing approximately 58% of the total revenue. The company also announced a strategic acquisition of Suprash Developers for ₹145.85 crore through its subsidiary, DR Axion India.

Consolidated Revenue from Operations increased 30.5% YoY to ₹2,05,728 Lakhs.
Net Profit for the quarter rose to ₹11,050 Lakhs from ₹1,223 Lakhs in the year-ago period.
Aluminium Products segment revenue grew significantly to ₹1,20,335 Lakhs from ₹91,637 Lakhs YoY.
Subsidiary DR Axion India acquired 100% of Suprash Developers for ₹14,585 Lakhs on December 20, 2025.
Basic EPS improved to ₹46.32 from a loss per share of ₹0.87 in Q3 FY25.

💡 The company demonstrates strong operational recovery and scale in its Aluminium segment. Investors should maintain a positive outlook given the healthy revenue growth and strategic inorganic expansion.

Craftsman Automation Faces Rs 19.26 Crore GST Tax Demand and Penalty

🔴 NEGATIVE ⭐ 6/10

LEGAL 📅 15 Jan 2026, 07:14 PM

Craftsman Automation has received an adverse order from the Commissioner (Appeals), Gurugram, upholding a GST tax demand of Rs 962.89 lakhs. Additionally, an equivalent penalty of Rs 962.89 lakhs has been imposed, bringing the total potential liability to approximately Rs 19.26 crore. The dispute concerns the valuation of consideration for services provided between FY 2017-18 and FY 2023-24. The company maintains its compliance and is preparing to file a further appeal to contest the order.

Total financial implication of Rs 19.26 crore including tax and penalty
Tax demand of Rs 962.89 lakhs and penalty of Rs 962.89 lakhs upheld
Dispute relates to GST service valuation for the period 2017-18 to 2023-24
Company intends to challenge the order through a further appeal process

💡 Investors should monitor the progress of the appeal as the total demand represents a notable one-time cost if not overturned. While the amount is significant, management does not foresee a material impact on operations.

Craftsman Automation to Host Q3 FY26 Earnings Conference Call on January 29, 2026

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 05 Jan 2026, 04:00 PM

Craftsman Automation Limited has scheduled its earnings conference call for Thursday, January 29, 2026, at 4:00 P.M. IST. The management will discuss the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. Key leadership, including Chairman and Managing Director Mr. Srinivasan Ravi and CFO Mr. C.B Chandrasekar, will be present to address investor queries. This call is a routine but essential event for stakeholders to understand the company's recent financial trajectory.

Earnings conference call scheduled for January 29, 2026, at 4:00 P.M. IST
Focus on financial performance for the quarter and nine months ended December 31, 2025
Management participants include CMD Mr. Srinivasan Ravi and CFO Mr. C.B Chandrasekar
Universal access numbers for the call are +91 22 6280 1568 and +91 22 7115 8391

💡 Investors should attend or review the transcript of the call to understand management's outlook on the automotive and industrial segments. Key metrics to watch include margin performance and order book updates.

Craftsman Automation Files SEBI Regulation 74(5) Compliance Certificate for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 05 Jan 2026, 11:18 AM

Craftsman Automation Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited, covers the quarter ended December 31, 2025. It confirms that all dematerialization requests were processed, and physical certificates were mutilated and cancelled within the prescribed timelines. This is a standard regulatory filing ensuring the integrity of the company's shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025.
Confirmation provided by Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited.
Verified that securities received for dematerialization were confirmed/rejected and listed on stock exchanges.
Confirmed that physical security certificates were mutilated and cancelled after due verification.
Register of members updated with depository names within mandated timelines.

💡 This is a routine administrative filing with no impact on the company's financial performance or stock valuation. No action is required from investors.

Craftsman Automation Subsidiary Sells Piston Assets to SPRL for INR 28 Crores

🟡 NEUTRAL ⭐ 6/10

M&A 📅 31 Dec 2025, 03:42 PM

Craftsman Automation's wholly-owned subsidiary, Sunbeam Lightweighting Solutions, has initiated the sale of its piston manufacturing line assets to Shriram Pistons & Rings Limited (SPRL). The total transaction value is fixed at INR 28 Crores, to be executed in tranches. The first tranche, involving the transfer of specific plant and machinery for INR 10 Crores, was completed on December 31, 2025. The remaining INR 18 Crores is expected to be realized by March 31, 2026, upon completion of the second tranche.

Total aggregate consideration for the asset sale is INR 28 Crores plus applicable GST.
First tranche of INR 10 Crores received on December 31, 2025, following asset transfer.
Remaining INR 18 Crores expected to be received by the end of Q4 FY26 (March 31, 2026).
The transaction is a piecemeal sale of plant and machinery rather than a slump sale of the entire division.

💡 Investors should note this as a minor liquidity-enhancing move through the divestment of specific manufacturing assets. While the deal size is relatively small for Craftsman, it reflects ongoing portfolio optimization.

Craftsman Automation to Close Trading Window from Jan 1, 2026, for Q3 FY26 Results

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 26 Dec 2025, 11:57 AM

Craftsman Automation Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations for the upcoming unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared to the public. This is a standard regulatory procedure for listed companies ahead of earnings announcements.

Trading window closure begins on Thursday, January 1, 2026.
Closure pertains to the financial results for the quarter and nine months ending December 31, 2025.
The window will reopen 48 hours after the results are declared to the stock exchanges.
Restriction applies to Directors, Designated Persons, and their immediate relatives.

💡 This is a routine regulatory filing with no impact on company fundamentals. Investors should monitor for the upcoming announcement of the board meeting date to review the Q3 FY26 financial performance.

View All CRAFTSMAN Announcements on Live Market Tracking →

💰 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%.