Alloy wheel exit run rate (March)
3M
+50% YoY
Annualized run rate for March 2026; capacity is 5.5M.
CRAFTSMANAUTOMATION
Manufacturing
15 May 2026
Craftsman Automation Ltd — Q4 FY26
Craftsman Automation reported a mixed Q4 FY26.
✓ Verified against BSE filing
2-Min Summary
Craftsman Automation reported a mixed Q4 FY26. The powertrain segment saw margin improvement due to reduced repair maintenance and better product mix, but overall capacity utilization remains at 60-70%. The alloy wheel business exited March at an annualized run rate of 3 million wheels, with revenue of ~₹280 crore for FY26. The Sunbeam restructuring is ongoing, with management exiting unprofitable customers and products, expecting margin traction from Q2 FY27. Management guided for mid-teens revenue growth in FY27, driven by new projects across segments. The large engine powertrain business is on track to reach $100 million revenue by FY29-30. Key risks include inflationary manpower costs, inability to pass on commodity price increases, and potential import competition in alloy wheels.
Key Numbers
Alloy wheel revenue FY26
₹280Cr
+16.7% YoY
Revenue from alloy wheel segment for full year FY26.
Powertrain capacity utilization
60-70%
flat
Includes new large engine business at ~10% utilization.
Net debt to EBITDA
2.43x
-0.3x YoY
Management expects to reduce to <2x in FY27 and 1.5x thereafter.
Management Guidance
Mid-teens revenue growth in FY27
Management expects double-digit revenue growth, specifically mid-teens, for FY27, assuming stable aluminium prices.
revenueNet debt to EBITDA below 2x in FY27
Management targets net debt to EBITDA to fall below 2x in the current fiscal year, and further to 1.5x.
otherSunbeam margin improvement from Q2 FY27
Restructuring of Sunbeam (exiting unprofitable customers/products) is expected to show margin traction from Q2 FY27.
marginsLarge engine powertrain $100M revenue by FY29-30
The large engine powertrain business is on track to reach $100 million in revenue by FY29-30, with phase two expansion decision by September 2026.
growthKey Risks
Inflationary manpower costs
Management highlighted that labor cost inflation (20% YoY) is a major concern, difficult to pass on to customers, and could pressure margins.
high · management_commentaryAluminium price pass-through and import competition
Analyst raised concerns about alloy wheel imports and commodity price pass-through; management acknowledged the risk and is cautious on further capacity expansion.
medium · analyst_questionSunbeam restructuring execution risk
Sunbeam's margin improvement depends on successful exit of unprofitable business and customer renegotiations; capacity utilization may temporarily drop to 45-50%.
medium · data_observationHigh capex and debt levels
Despite management's confidence, net debt of ~₹3,300 crore and ongoing capex (land acquisition, new plants) could delay deleveraging if growth slows.
medium · analyst_questionNotable Quotes
The exit rate of the alloy wheel approximately it is around 3 million alloy wheels is the exit rate for the month of March.
We are lacking behind on the margin wise with the sing still at single digit for various reasons but we are on the right track.
The cost of doing business or cost of expansion is disproportionately high on this matter.