Craftsman Automation Limited — Q3 FY26
Craftsman Automation reported a mixed Q3 FY26.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
58%Questions answered2Evaded / deflected12Questions audited
Partial answer
High priority
Reasons for sequential dip in aluminum standalone margins and outlook.
Asked by Mumukesh Mandlesa, Anandraati Institutional Equities
Management gave a reason but did not quantify the impact on margins.
attributed to one-time startup costsno quantification of impact
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Question
on the aluminum side aluminum standard margin sir uh this quarter there's a dip sequentially Q and Q uh I just want to understand what could be the reasons for the decline
Srinivasalu Ravi (MD)
There's a startup of a new plant in shagari. We have incurred operational losses in the first quarter to prove out all the parts totally. So as a consolidated I mean as a standalone it affected the standalone because it's quite also significant plant.
Partial answer
High priority
Utilization levels for 5.8 million capacity and alloy wheel margins.
Asked by Mumukesh Mandlesa, Anandraati Institutional Equities
Management gave a rough utilization level but no precise number or margin range.
no exact utilization percentage givenmargin range not specified
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Question
how we are seeing the utilization levels for the 5.8 million capacity and also want to check have the alloy wheel margins moved to a normal range of something like high single-digit margin
Srinivasalu Ravi (MD)
We have not even touched 50% of the installed capacity I would say because of the high variety of parts which are under is all subject to BS approval also and the model developments and also customer validation.
Answered
High priority
Outlook for powertrain segment given CV and tractor recovery.
Asked by Mukkesh Saraf, Aventes Park
Management provided a clear outlook and growth drivers.
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Question
on the power train segment. could you kind of give us some sense on the fact that commercial vehicle segments are looking better now the outlook seems a lot more positive and so does tractors so how do we see this segment fair for us
Srinivasalu Ravi (MD)
Tractor is doing very well in this financial year and commercial vehicle is showing sometimes green shoots of some marginal growth. The more interesting portion will come in the coming years when commercial vehicle moves to the higher engine capacities and gearbox capacities.
Answered
High priority
Timeline for Sunbeam to reach double-digit margins.
Asked by Mukkesh Saraf, Aventes Park
Management gave a specific timeline and margin target.
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Question
on Sunbeam if you could kind of just take us through I mean where are we in that journey towards double digit margins now that we've been running it now for a few quarters.
Srinivasalu Ravi (MD)
We will be seeing margins from Q2 of next year improving at we'll end the year for a 10% or sort of EBITDA level from the current year of around 7% totally.
Answered
High priority
Sustainability of sharp jump in industrial and engine segment EBITDA margin.
Asked by Abishek Jan, Alphaacurate Advisers Private Limited
Management confirmed sustainability and gave a positive outlook.
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Question
in industrial and engine segment we have seen a very sharp jump in EBITDA margin. So just wanted to understand is it sustainable and are we looking some improvement on the business
Srinivasalu Ravi (MD)
Yes, it is sustainable and with the operating leverage which we are now started to generate, we will see margin expansion in the next financial year.
Evasive
High priority
Operating margin trajectory for Q4 and FY27.
Asked by Abishek Jan, Alphaacurate Advisers Private Limited
Management avoided giving a specific margin number and redirected to gross margin analysis.
reframed the questionno specific margin guidance given
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Question
what would be the margin lab in quarter 4 and in 27. As you said that this quarter margin also impacted because of that addition of the new plants
Srinivasalu Ravi (MD)
I think it doesn't hold good for many reasons for example aluminium exports from China has been dropped by 8% so aluminium prices have jumped by around 16%... So I would kindly request you to look at the gross margin and the margin versus the EBITDA margins or EBITDA margins versus the gross margins.
Declined
Medium priority
Order book split for stationary engines between prime and backup power.
Asked by Nikl, I thought PMS
Management stated they cannot provide the split because customers don't disclose end use.
cannot provide split due to lack of data
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Question
I have a question on the order book for stationary engines. Can you provide the split for the 100 million between prime power source and backup power source?
Srinivasalu Ravi (MD)
Our customers do not tell us whether it's for prime power or backup power. So we have no and these are fungible at least the product what we make is fungible.
Partial answer
Medium priority
Demand from Scramberg acquisition beyond data centers and steady-state margins.
Asked by Nikl, I thought PMS
Management discussed demand but did not provide margin expectations.
no margin guidance givenfocused on demand drivers
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Question
from the Scrumberg acquisition, do you see any demand coming in beyond data centers like from other industries? And also what kind of steady state margins are you expecting from this business?
Srinivasalu Ravi (MD)
Energy per se has been growing not significantly in the past but this data centers or AI has driven the energy to be suddenly spike... but it'll not be as high as this what is happening.
Partial answer
High priority
Current debt levels and working capital impact from GST reduction demand surge.
Asked by Nikl, I thought PMS
Management gave a ratio but not absolute debt numbers.
no specific debt figures givendeferred to net debt to EBITDA ratio
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Question
What are the current debt levels of the company both short and long-term? Given that OEMs finished 2025 with like near optimal inventory day, has that been like a bullwhip effect on your working capital needs because of the recent surge in demand because of the GST reduction?
Srinivasalu Ravi (MD)
On the powertrain, I think there is no increased requirement of working capital per se in aluminium. I think the delta price of the price increase will have that marginal 10% or 15% increase in the working capital requirement.
Answered
Medium priority
Benefit from aluminum price increase on product-level pricing vs tonnage basis.
Asked by Frederick, Sundaram Mutual Fund
Management clearly stated they do not quote on tonnage basis.
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Question
in aluminum are there products where we can benefit out of this aluminum price increase? meaning it is not on per tonnage basis and on more product level pricing.
Srinivasalu Ravi (MD)
We never have ever quoted for tonnage basis at all. Aluminium is a calculated material cost and that is it and that is anybody can calculate it not only the customer.
Partial answer
High priority
Capex for 9 months and full year, and current debt level.
Asked by Mumukesh Mandlesa, Anandraati Institutional Equities
Management gave capex figure but avoided giving gross/net debt numbers.
deferred some details offlinegave only net debt to EBITDA ratio, not gross/net debt
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Question
on the capex side what was the capex for the 9 month and what is expected for the full year sir and can you again indicate the debt level what is the debt gross and net currently
Srinivasalu Ravi (MD)
I think this can be taken offline on this subject various subsidies also we have to as I mentioned consolidated net debt to EBITDA it is 2.55 as of now... we are looking at standalone capex for craftsman around close to 400 cr this year
Partial answer
High priority
Plan to reduce debt and target debt-to-EBITDA in FY27.
Asked by Abhishek Jan, Alphaacurate Advisers Private Limited
Management gave a target ratio but not a specific debt reduction figure or timeline.
no specific debt reduction amount giventimeline vague
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Question
what's your plan to reduce your debt as you were earlier indicated that you will sell one of your land and you'll start to reduce debt in FY27. We just wanted to understand how much debt reduction will happen in FY27 onwards and what is your target for the medium term?
Srinivasalu Ravi (MD)
We already sold anything debt below debt to EBITDA below two is compatible and we like to stabilize at 1.5 when we have gone through this big growth cycle. So as we speak it is 2.5 in spite of the land not getting sold