Craftsman Automation Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Craftsman Automation Ltd filed with BSE on 04 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Craftsman Automation management discussed segment-level performance across Powertrain, Aluminium, Industrial and Sunbeam businesses for Q1 FY27, describing the aluminium segment as being on a growth trajectory supported by recent capacity investments. Management outlined capex plans of roughly INR 1,000 crores standalone and INR 430 crores at DR Axion, along with progress on the heavy horsepower stationary engine order book targeting USD 100 million in revenue by FY29. Management also addressed the Sunbeam restructuring, capacity utilization levels across segments, and rising raw material cost pass-through discussions with customers.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
DR Axion approved capex: INR 430 crores (FY27)
p. 5
“The approved plan is around INR 430 crores capex for DR.”
Srinivasan Ravi, page 5 of the filed PDF · View the filing
Standalone capex: more than INR 1,000 crores
p. 5
“Standalone, we have been averaging more than INR 1,000 crores, I think, capex, and that will continue.”
Srinivasan Ravi, page 5 of the filed PDF · View the filing
Alloy wheel installed capacity: 5.8 million wheels
p. 4
“I think we declared whatever the installed capacity is 5.8 million.”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Alloy wheel production this year: crossing 4 million wheels (FY27)
p. 4
“And this year, hopefully we'll be touching or crossing 4 million wheels on the current year, that is at the combined plant of Bhiwadi as well as Shoolagiri.”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Powertrain capacity utilization: around 70%-odd
p. 9
“Powertrain is averaging around 70%-odd.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Aluminium capacity utilization: more than 80%-odd
p. 9
“And Aluminium, we are already operating at more than 80%-odd, I would say.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Powertrain depreciation: close to around INR 500 crores
p. 11
“You may recall that our depreciation is around close to around INR 500 crores now currently.”
Srinivasan Ravi, page 11 of the filed PDF · View the filing
Land cost for DR Axion plant: around INR 150 crores for 50 acres
p. 10
“the land alone for DR Axion plant costed us around INR 150 crores, which is around 50 acres of land.”
Srinivasan Ravi, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Heavy horsepower stationary engine revenue target — USD 100 million · FY29-30
stated firmly by Srinivasan Ravi
p. 3
“I'll reiterate that we have targeted USD 100 million sort of revenue in FY '29. We are on track for that.”
Srinivasan Ravi, page 3 of the filed PDF · View the filing
Heavy horsepower stationary engine revenue beyond initial target — beyond USD 100 million · FY30-31
stated conditionally by Srinivasan Ravi
p. 3
“So that can take it beyond the USD 100 million, whatever was initially projected.”
Srinivasan Ravi, page 3 of the filed PDF · View the filing
Sunbeam restructuring completion — 90% of restructuring complete · December
stated firmly by Srinivasan Ravi
p. 4
“So, with that, I think by December, I think 90% of the turnaround or the restructuring will be complete.”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Sunbeam EBITDA margin — mid-teens · Q4
stated firmly by Srinivasan Ravi
p. 8
“So, exit rate, I'm very confident about Q4 mid-teens sort of an EBITDA margin for Sunbeam.”
Srinivasan Ravi, page 8 of the filed PDF · View the filing
Sunbeam revenue — 10%-20% reduction in top line
stated conditionally by Srinivasan Ravi
p. 8
“And revenue, there may be a 10%, 20% sort of reduction in the top line, but there will be an increase in the gross margin or value addition.”
Srinivasan Ravi, page 8 of the filed PDF · View the filing
Consolidated capex — INR 1,500 crores · this year
stated conditionally by Srinivasan Ravi
p. 9
“Conservatively, yes. But the traction what we see, if this -- we thought because of the Iran crisis, everything will slow down and stop that was when the capex plans were made.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Heavy horsepower engine productionization — 30% by FY28, 50% by FY29 · FY28-FY29
stated firmly by Srinivasan Ravi
p. 6
“So, the -- I would say 30% of the production will be productionized by FY 28 and another 50% will come into FY 29, I would say.”
Srinivasan Ravi, page 6 of the filed PDF · View the filing
Powertrain capacity utilization gap closure — bridge 10% gap · Q2 or Q4
stated as an aspiration by Srinivasan Ravi
p. 9
“The 10%, hopefully, we will be able to bridge the gap in this Q2 or Q4 as we stand on the Powertrain.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said aluminium growth will outpace other segments due to recent investments and new capacities still maturing.
Answered by Srinivasan Ravi
Asked by Mumuksh Mandlesha: What are the key growing segments in the aluminium business and outlook for the order book?
p. 3
“Aluminium, we are on a growth path, and this growth journey will continue.”
Srinivasan Ravi, page 3 of the filed PDF · View the filing
Management clarified Hosur is for high-pressure die casting capacity, not alloy wheels, driven by running out of space at current plants.
Answered by Srinivasan Ravi
Asked by Mukesh Saraf: What is the purpose of the new Unit 3 capex at Hosur and current alloy wheel utilization?
p. 4
“So now the Hosur facility is not for alloy wheel. It is for the additional high fpressure die casting and to start with high-pressure die casting only on parts which are for the automotive industry.”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Management said customer response varies but expects alignment on alloy price pass-through over time.
Answered by Srinivasan Ravi
Asked by Mukesh Saraf: How is the company handling raw material cost pass-through with customers?
p. 5
“But we are confident all customers will need to align to the new reality that this sort of a situation, suppliers have to be fairly compensated for the alloy prices, which should be a pass-through.”
Srinivasan Ravi, page 5 of the filed PDF · View the filing
Management described a multi-year certification and productionization process, with newer orders taking less time due to established customer relationships.
Answered by Srinivasan Ravi
Asked by Chandramouli Muthiah: How long does it take heavy horsepower engine orders to move from initial batches to full production?
p. 6
“So, it has been a very difficult long passage to get all the data and the 2 teams to work together, which we are working for the last 3.5 or 4 years now totally.”
Srinivasan Ravi, page 6 of the filed PDF · View the filing
Management said margins may look depressed initially due to lower capacity utilization but expects return ratios to align with existing Powertrain business over time.
Answered by Srinivasan Ravi
Asked by Chandramouli Muthiah: What is the margin profile of the heavy horsepower engine business relative to Powertrain?
p. 7
“But our confidence is that the return ratios will be among similar lines on the current powertrain within a couple of years.”
Srinivasan Ravi, page 7 of the filed PDF · View the filing
Management attributed the improvement to rising demand in material handling and storage divisions along with operating leverage.
Answered by Srinivasan Ravi
Asked by Chandramouli Muthiah: What is driving the spike in the Industrial segment this quarter?
p. 7
“But our product lines, both in the material handling system as well as storage division, they are seeing upswing on demand, I would say.”
Srinivasan Ravi, page 7 of the filed PDF · View the filing
Management said the exited business is legacy, low-margin, and its removal should improve overall Sunbeam margins.
Answered by Srinivasan Ravi
Asked by Joseph George: How big is the Sunbeam business being exited and what is the margin impact?
p. 8
“So, it is a negative margin profile, which these products we are exiting.”
Srinivasan Ravi, page 8 of the filed PDF · View the filing
Management said the capex will be split between Powertrain and Aluminium depending on growth opportunities.
Answered by Srinivasan Ravi
Asked by Vignesh SBK: Will the INR 1,000 crore standalone capex go mostly toward Aluminium?
p. 11
“No, it will be for both Powertrain and Aluminium in the right proportion depending on the growth opportunities.”
Srinivasan Ravi, page 11 of the filed PDF · View the filing
Management indicated funding will primarily be internal accruals with no current need for external capital markets.
Answered by Srinivasan Ravi
Asked by Vignesh SBK: Will the capex be funded through internal accruals?
p. 11
“So, year after, it will be only internal accruals.”
Srinivasan Ravi, page 11 of the filed PDF · View the filing
Risks flagged
Global economic uncertainty affecting standalone capex decisions
p. 5
“But as of now, we don't see much need to react very quickly because still we have global problems.”
Srinivasan Ravi, page 5 of the filed PDF · View the filing
Seasonal nature of business limiting capacity utilization
p. 9
“I think beyond 75% is very difficult because of the seasonal nature of the business and the risk of stopping customer lines.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Rising input and infrastructure costs increasing capex requirements
p. 11
“The capex is around 5x to 7x more because the land has increased 8x, 9x, the construction cost has increased 3x, 4x.”
Srinivasan Ravi, page 11 of the filed PDF · View the filing
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