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View Claim Ledger →Craftsman Automation Ltd — Q4 FY26
Craftsman Automation reported a mixed Q4 FY26.
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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.
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Inflationary manpower costs
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Read Transcript →Quarter Snapshot
Alloy wheel exit run rate (March)
3M
+50% YoY
Annualized run rate for March 2026; capacity is 5.5M.
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.
What Changed vs Last Quarter
NEW
Mid-teens revenue growth in FY27
Management expects double-digit revenue growth, specifically mid-teens, for FY27, assuming stable aluminium prices.
NEW
Net 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.
NEW
Sunbeam margin improvement from Q2 FY27
Restructuring of Sunbeam (exiting unprofitable customers/products) is expected to show margin traction from Q2 FY27.
NEW
Large 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.
DROPPED
Sunbeam EBITDA margin to reach 10% exit run rate by Q4 FY27
Sunbeam margins will improve from current ~7% to 10% by Q4 of next fiscal year, driven by operating leverage and better utilization.
DROPPED
Aluminium margins to improve from Q4 FY26 onwards
The new plant at Shagari will ramp up production, reducing operational losses and improving aluminium margins from Q4.
DROPPED
Debt to EBITDA target of 1.5x in medium term
Management aims to reduce debt-to-EBITDA from current 2.5x to 1.5x through growth and potential land sale.
DROPPED
Powertrain capacity addition of 5-10% in next 12 months
Capacity in powertrain will be expanded by 5-10% starting January 2026 to meet growing demand.
NEW RISK
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.
NEW RISK
Aluminium 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.
NEW RISK
Sunbeam 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%.
RISK GONE
Aluminium price volatility impacting margins
Sharp rise in aluminium prices (16% increase) optically reduces EBITDA margins, though value addition remains intact.
RISK GONE
New plant ramp-up delays
The Shagari plant startup caused operational losses; any further delays in reaching optimal utilization could pressure margins.
RISK GONE
Customer concentration risk
95% of revenue comes from 4-5 customer groups; loss of any key customer could significantly impact revenue.
Fast read
Guidance and risk preview
Management expects double-digit revenue growth, specifically mid-teens, for FY27, assuming stable aluminium prices.
Management highlighted that labor cost inflation (20% YoY) is a major concern, difficult to pass on to customers, and could pressure margins.
View Risks →