Craftsman Automation Ltd

Craftsman Automation Limited's earnings conference call for the quarter and half year ended 30 September 2026 highlighted ongoing growth in Powertrain and Aluminum segments despite headwinds from rising commodity prices and energy costs. Management noted that the company has completed significant CAPEX, with new capacities in stationary engines and Aluminum casting, expecting revenue growth to peak at around $100 million in FY'30. The Aluminum segment faced temporary margin compression due to inventory adjustments and price fluctuations, but management emphasized discussions with customers on price rationalization to offset rising costs. Sunbeam's transformation and new customer orders were noted, while the company remains selective in expanding its customer base. Gross debt increased to Rs. 3,618 crores, but management expects net debt to EBITDA to stabilize at 1.7-1.8x by FY'27. The company is expanding its global footprint with a German subsidiary focused on foundry operations and is cautiously evaluating future CAPEX in foreign markets. Management reiterated confidence in achieving 15% CAGR growth, driven by new product development, exports, and industry trends toward outsourcing. The EV segment is seen as a long-term opportunity, though current exposure remains limited to structural components and alloy wheels.

The summary reflects both positive growth outlooks and challenges such as margin compression and debt increases.