Craftsman Automation Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Craftsman Automation Ltd filed with BSE on 13 May 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's management discussed ramp-up of its alloy wheel plants at Bhiwadi and Hosur, restructuring efforts at the recently acquired Sunbeam aluminum business to exit unprofitable customers and products, and consolidation plans for its aluminum entities including DR Axion and Sunbeam. Management described net debt to EBITDA at 2.43x with an expectation of it declining, and discussed capacity utilization across powertrain, aluminum and industrial engineering segments. The call also covered capex plans, a new greenfield project at Sriperumbudur, and inflationary manpower cost pressures across the group.
Numbers mentioned
Alloy wheel exit run rate: around 3 million wheels annualized (March 2026 exit rate)
p. 2
“It is equal to around 3 million alloy wheels is the exit rate for the month of March.”
Srinivasan Ravi, page 2 of the filed PDF · View the filing
Alloy wheel revenue: around INR280 crores (FY26)
p. 14
“Around INR280 crores is the revenue in the last financial year for the alloy wheel.”
Srinivasan Ravi, page 14 of the filed PDF · View the filing
Net debt to EBITDA: 2.43
p. 13
“we are already at 2.43 net debt to EBITDA”
Srinivasan Ravi, page 13 of the filed PDF · View the filing
ROCE: 16% (consolidated basis)
p. 8
“our ROCE on a consolidated basis has been 16%”
Srinivasan Ravi, page 8 of the filed PDF · View the filing
Powertrain capacity utilization: 65%-70%
p. 8
“Powertrain, we are still at around 65%, 70% because there are some pockets and segments where the customers are not doing well.”
Srinivasan Ravi, page 8 of the filed PDF · View the filing
Alloy wheel capacity: 5.5 million (nos)
p. 9
“our capacity is around 5.5 million (nos)”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Sunbeam capacity utilization: 70% coming down to 45%-50%
p. 9
“Capacity utilization, which is around 70%, will come down to around 45%, 50% in the near for the Sunbeam because some of them are legacy products unviable to continue manufacturing.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
DR Axion capacity utilization: 80%-85%
p. 10
“Their capacity utilization is the tune of around 80%, 85%, I would say.”
Srinivasan Ravi, page 10 of the filed PDF · View the filing
Debt excluding Gurgaon land sale: INR2,700 crore consolidated
p. 13
“The land sale of Gurgaon, if you take away the land sale of Gurgaon, then look at the debt, we should look at the debt at, say, INR2,700 on the consolidated basis, not at INR3,100.”
Srinivasan Ravi, page 13 of the filed PDF · View the filing
DR Axion land acquisition cost: around INR150 crores
p. 10
“We have taken around 50 acres of land at around INR150 crore cost, but we have taken over those companies.”
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.
Revenue growth FY27 — mid-teens · FY27
stated conditionally by Srinivasan Ravi
p. 3
“It is truly double digit, most probably, in the mid-teens, I would say.”
Srinivasan Ravi, page 3 of the filed PDF · View the filing
Stationary engine business revenue — $100 million · FY29, FY30
stated firmly by Srinivasan Ravi
p. 4
“we will be able to reach that $100 million sort of revenue in '29, '30”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Aluminum business revenue — $1 billion · 2 to 3 years
stated conditionally by Srinivasan Ravi
p. 12
“I think it will be 2 to 3 years' time. It is also a little sensitive towards aluminum prices, but I would say that at the current aluminum prices, I think 2 to 3 years we should be there.”
Srinivasan Ravi, page 12 of the filed PDF · View the filing
Net debt to EBITDA — less than 2, then 1.5 · current year and beyond
stated as an aspiration by Srinivasan Ravi
p. 13
“We are looking at, going forward, it'll be less than 2, I would say, in the coming, the current year itself, totally.”
Srinivasan Ravi, page 13 of the filed PDF · View the filing
Powertrain Phase 2 expansion decision — September
stated conditionally by Srinivasan Ravi
p. 5
“I think we should take a decision by September based on the order input.”
Srinivasan Ravi, page 5 of the filed PDF · View the filing
Alloy wheel volume next year — close to 4 million (nos) · next year
stated as an aspiration by Srinivasan Ravi
p. 9
“I think we should touch around close to 4 million (nos) in the next year.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Sriperumbudur plant commissioning — December
stated firmly by Srinivasan Ravi
p. 10
“The civil construction is on, and the plant will be commissioned by December.”
Srinivasan Ravi, page 10 of the filed PDF · View the filing
FY2027 capex — FY2027
stated conditionally by Srinivasan Ravi
p. 7
“On FY 2027 itself, we are not very clear about the capex as today because we have taken some interim requirements.”
Srinivasan Ravi, page 7 of the filed PDF · View the filing
Sunbeam margin improvement — Q2 onwards
stated conditionally by Srinivasan Ravi
p. 3
“From Q2 onwards on the current year, we will see some traction.”
Srinivasan Ravi, page 3 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 margins remain single-digit due to restructuring, exiting unprofitable customers and products, and resetting legacy prices, with improvement expected from Q2.
Answered by Srinivasan Ravi
Asked by Pritesh Chheda: What is the status of the aluminum die casting business (Sunbeam) margin capture?
p. 3
“We are just lacking behind on the margin-wise with a single, still at single-digit for various reasons.”
Srinivasan Ravi, page 3 of the filed PDF · View the filing
Management attributed the margin change mainly to reduced repair and maintenance costs and manpower efficiency rather than scale, with scale benefits expected in future years.
Answered by Srinivasan Ravi
Asked by Joseph George: Is the powertrain margin improvement due to scale benefits and will it sustain?
p. 6
“I would say that the repair and maintenance which went on for almost 4, 5 quarters, which was depressing the EBIT margins, was the main -- EBITDA margins were the main reason for that change.”
Srinivasan Ravi, page 6 of the filed PDF · View the filing
Management said this reflected the ramp-up of the aluminum business and that payment cycles have since normalized, with no major change expected going forward.
Answered by Srinivasan Ravi
Asked by Joseph George: What explains the negative working capital impact in cash flows over FY25 and FY26?
p. 7
“I think it is the same way going forward. I don't think there is any big change.”
Srinivasan Ravi, page 7 of the filed PDF · View the filing
Management explained the goal is to achieve synergy and scale to compete with larger global competitors and reduce redundancy in equipment, people and processes.
Answered by Srinivasan Ravi
Asked by Ram Seshan: What is the strategy behind consolidating the aluminum entities Sunbeam and DR Axion?
p. 12
“Our competitors across the world are $3 billion to $6 billion in revenue.”
Srinivasan Ravi, page 12 of the filed PDF · View the filing
Management said continued capex investment would likely offset margin gains from existing capacity in the near term.
Answered by Srinivasan Ravi
Asked by Vinay Nadkarni: Will aluminum segment EBIT margins improve by a couple of percentage points this year given consolidation efforts?
p. 14
“If you're going at this rate, no. Because the future capex in this year will again spoil the margins.”
Srinivasan Ravi, page 14 of the filed PDF · View the filing
Management said the consolidation was more about funding future investments, while debt-to-EBITDA was expected to decline naturally.
Answered by Srinivasan Ravi
Asked by Karthi: Is aluminum business consolidation a deleveraging strategy or are there other debt reduction plans?
p. 13
“It will be more to fund our future investments maybe, but I think this debt portion of it, debt to EBITDA-wise, if you look at it, the forward-looking EBITDA, I think we are already at 2.43 net debt to EBITDA.”
Srinivasan Ravi, page 13 of the filed PDF · View the filing
Risks flagged
Inflationary manpower costs difficult to pass on to customers
p. 12
“What is worrying us the inflationary manpower cost, which is very difficult to pass on to customer.”
Srinivasan Ravi, page 12 of the filed PDF · View the filing
Rising aluminum, energy and labor costs pressuring casting margins
p. 4
“The margins on basic raw casting is not going to be viable.”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Legacy Sunbeam customers and products are unprofitable
p. 3
“These are non-profitable businesses and unviable going forward.”
Srinivasan Ravi, page 3 of the filed PDF · View the filing
Lead-lag risk in aluminum commodity price pass-through from customers
p. 9
“There should not be lead lag there, which will hurt us badly.”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Possible future competition from imports after BIS norms settle
p. 9
“Second thing is, imports of this alloy wheel. What is the way going forward? Is there going to be some competition coming there again back after the BIS norms has been more or less settled down now?”
Srinivasan Ravi, page 9 of the filed PDF · View the filing
Truck segment demand remains muted
p. 4
“Truck segment is somewhat muted, I would say, in general.”
Srinivasan Ravi, page 4 of the filed PDF · View the filing
Delay in Sunbeam land sale due to buyers seeking discount
p. 11
“Still, I think the sale is little elusive because whoever is looking for buying it is asking a discount from the current market price.”
Srinivasan Ravi, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.