Craftsman Automation Q2 FY26 Concall Decoded: From Machined Blocks to Billion-Dollar Dreams 🔧
Opening Hook Remember when everyone thought “Make in India” was just another slogan? Craftsman Automation is quietly building the hardware backbone while others are still tweeting about it. Revenue’s revving up, CAPEX is ballooning, and the MD sounds like he’s planning for 2029 already — not next quarter. Between alloy wheels spinning in Hosur and engine blocks brewing in Kothavadi, it’s all torque and ambition. But hold on — debt’s climbing, margins are twitching, and the “$100 million data center dream” feels both bold and bonkers. Stick around, because this call has everything — German precision, Indian optimism, and just enough financial caffeine to keep analysts awake.
At a Glance
Revenue ₹3,786 Cr (+60%) – Growth so fast even Excel crashed.
EBITDA ₹582 Cr (+~40%) – Profit muscles flexing but panting a bit.
EBITDA Margin 15% – Strong, but inflation nibbled at the edges.
Net Debt ₹2,800 Cr – Debt’s doing more heavy lifting than forklifts.
ROCE 15% – They swear it’s “temporary,” like every engineer’s deadline.
Stock sentiment: Traders now believe in aluminum more than AI.
Management’s Key Commentary
“Powertrain contributed ₹2,034 Cr, Aluminum ₹2,275 Cr, Industrial Engineering ₹476 Cr.” (Translation: Aluminum’s the new boss. Steel can take a seat.)
“Net debt-to-EBITDA at 2.46; we’ll bring it down by selling land.” (Because who needs Gurgaon when you’ve got global dreams.)
“Hosur and Bhiwadi plants are ramping up; margins are sustainable.” (Classic CFO optimism — sustainable until power bills arrive.)
“CAPEX of ₹1,000 Cr planned; DR Axion adding ₹280 Cr more.” (They’re spending like it’s Diwali every quarter.)
“Sunbeam restructuring done; aiming 10% EBITDA in FY27.” (Union deals done, now chasing profit deals. 😏)
“Data center engine orders worth $100M expected by 2029.” (When ChatGPT 9 is out, these engines might finally roar.)
“German subsidiary doing ₹158 Cr revenue with ₹8 Cr PAT.” (Even Germans can’t resist an Indian growth story. 🇩🇪)
“Minimum ROCE threshold 20% for new CAPEX.” (Ambitious, but spreadsheets don’t lie — people do.)
