Craftsman Automation (CRAFTSMAN) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw normalization in powertrain segment performance and strong growth in the aluminum segment, supported by recent investments and capacity additions.

• The company operates 31 manufacturing facilities across India and Germany, serving commercial vehicles, passenger vehicles, two-wheelers, farm equipment, and off-highway vehicles.

• Achieved highest-ever consolidated revenue of ₹8,069 crores in FY26, with market capitalization rising from ₹2,852 crores to ₹24,734 crores as of June 2026.

• Sunbeam restructuring is nearly complete, with margin improvements expected from Q3 onwards as legacy, low-margin businesses are exited.

• Order book remains healthy across both four-wheeler and two-wheeler segments, with new orders expected to contribute to revenue from FY28 and FY29.

Financial highlights

• FY27 Q1 consolidated revenue rose 36% year-over-year to ₹2,432 crores, with EBITDA up 51% to ₹408 crores and net profit up 116% to ₹151 crores.

• Standalone powertrain segment reported strong year-on-year growth in both revenue and EBIT.

• Aluminium Products segment revenue reached ₹1,479 crores, with EBIT of ₹150 crores, and showed the highest revenue growth.

• Net profit margin improved to 6% in FY27 Q1, with EPS increasing to ₹62.12 from ₹36.89 year-over-year.

• Total expenses increased to ₹225,426 lakhs from ₹168,723 lakhs year-over-year, reflecting higher cost of sales and other expenses.

Outlook and guidance

• Aluminum segment expected to maintain growth momentum for several quarters, with new capacities coming online, including a new facility at Hosur, Tamil Nadu, to be commissioned in 6-8 months.

• Kothavadi foundry on track to achieve $100 million revenue by FY29, with potential to exceed this target as new inquiries are converted.

• Heavy horsepower engine business to begin contributing revenue from FY28, ramping up through FY30 as customer approvals accelerate.

• Sunbeam margins projected to align with group levels by Q4, despite a 10-20% reduction in top line due to business exits.

• Continued focus on strategic expansion with new greenfield facilities and ongoing modernization of manufacturing infrastructure.