Craftsman Automation (CRAFTSMAN) Q3 25/26 earnings summary

Executive summary

• Aluminum segment margins declined due to operational losses from a new plant startup and commodity price volatility, but are expected to improve from Q4 onwards as production ramps up.

• Diversified engineering company with three main business verticals: Powertrain, Aluminum Products, and Industrial Engineering, serving commercial vehicles, passenger vehicles, two-wheelers, farm equipment, and off-highway vehicles.

• Achieved highest-ever 9M FY26 revenue of ₹5,843 crores and EBITDA of ₹922 crores, with market capitalization rising to ₹18,261 crores as of December 31, 2025.

• Consolidated revenue from operations for Q3 FY26 was ₹205,728 lakhs, up from ₹157,609 lakhs in Q3 FY25, with total income at ₹208,497 lakhs for the quarter and ₹588,512 lakhs for the nine months ended December 2025.

• Sunbeam's integration is progressing, with EBITDA margins expected to rise from 7% to over 10% by year-end, and further improvement as new business is added.

Financial highlights

• 9M FY26 revenue grew 48% year-over-year to ₹5,843 crores; EBITDA rose 51% to ₹922 crores; PAT more than doubled to ₹268 crores.

• Q3 FY26 revenue was ₹2,057 crores, up 31% year-over-year; EBITDA at ₹340 crores, up 64%; PAT at ₹108 crores, more than double year-over-year.

• EBITDA and segment results improved across all major business lines, with Powertrain, Aluminium Products, and Industrial & Engineering segments showing strong growth.

• Operating margin has hovered around 15-16% in recent quarters, impacted by new plant additions and aluminum margin contraction.

• Basic and diluted EPS for Q3 FY26 were ₹44.90, up from ₹5.42 in Q3 FY25; for the nine months, EPS was ₹112.16, compared to ₹55.44 year-over-year.

Outlook and guidance

• Aluminum margins are expected to stabilize and improve as new capacity utilization increases and operational losses subside.

• Recent acquisitions and greenfield expansions are expected to further strengthen market position and operational capabilities.

• Industrial & Engineering and Powertrain segments are projected to grow at high single to low double digits, while Aluminum Products are expected to grow in the high teens over the next few years.

• Management notes that results for the current period are not directly comparable to the previous year due to acquisitions and business expansion.

• Powertrain capacity is set to expand by 5-10% in the next 12 months.