Craftsman Automation Ltd Q2 FY26 Results — Aluminium Dreams, German Schemes, and the Coimbatore Machine Factory That Ate 7,000 Crores in Sales
1. At a Glance
Ladies and gentlemen, meet Craftsman Automation Ltd, the Coimbatore-born engineering wizard that decided “machining” means machining everything from India to Germany. With a market cap of ₹16,151 crore, and a price tag of ₹6,770 per share (as of 7 November 2025), this is no small-town lathe shop anymore.
Q2 FY26 numbers? Brace yourself — Revenue ₹2,002 crore, up 64.9% YoY, PAT ₹91.2 crore, up 47.8% YoY, and an operating profit margin of 15%. It’s like the company’s CNC machine started printing cash instead of metal chips.
The aluminium segment, once the underdog, now rules the house with 47% revenue contribution (up from 20% in FY22). Post-acquisitions of DR Axion, Sunbeam Lightweighting, and two shiny German foundries, Craftsman now has a European accent too.
But wait — debt sits heavy at ₹3,311 crore (Debt/Equity 1.09x). So while profits grew, interest costs have become the office villain nobody can fire. Promoters hold 48.7%, foreign investors 15.4%, and domestic institutions a chunky 24.4%.
If you think “automation” sounds sexy, remember — at 62x P/E, you’re paying for a Lamborghini, not a Maruti.
2. Introduction
Once upon a time in Coimbatore, someone decided that instead of making idli plates, they’d make engine blocks. Thus, Craftsman Automation was born in 1986 — a humble precision shop that grew up to be the most talked-about manufacturing player in India’s auto component sector.
Fast forward nearly four decades, and it’s a beast of ₹7,111 crore in FY25 revenue, ₹260 crore PAT, and an expanding empire from Hosur to Germany. This is not your uncle’s lathe workshop — this is a 12-plant, 10-satellite-unit, multinational machine with aluminium in its veins and debt in its bloodstream.
What makes Craftsman spicy is not just growth — it’s how they’re doing it. A string of acquisitions, capex explosions, and QIP fundraises make it feel like a Bollywood montage of “small-town boy goes global.”
But here’s the catch: while revenue went from ₹3,183 crore in FY23 to ₹7,111 crore in FY25 (a 2.2x jump), margins went the other way — from 21% to 14%. Why? Because aluminium’s heavy, Germans are expensive, and expansion eats profit like pac-man.
Still, in a manufacturing landscape that’s either sleepy or shady, Craftsman is that one player actually building things — literally.
3. Business Model – WTF Do They Even Do?
Let’s decode the Craftsman menu card before we choke on acronyms:
(1) Aluminium Products – 47% of H1 FY25 revenue (vs 20% in FY22) They make crankcases, cylinder blocks, and engine parts that go inside your car, tractor, or truck. After gobbling up DR Axion and Sunbeam, this segment went full Fast & Furious. It’s now the company’s star child, growing 380% between FY22–FY24.
(2) Powertrain – 36% (vs 52% in FY22) This is old-school Craftsman — machining heavy components for M&HCVs, gearboxes, and transmission systems. Think of it as the iron heart that keeps the automotive sector running, but it’s slowly losing share to the shinier aluminium sibling.
(3) Industrial & Engineering – 17% (vs 28% in FY22) Includes storage systems and industrial sub-assemblies. So yes, Craftsman also builds racks and shelves. If your Amazon parcel reached you on time, there’s a chance it rested on a Craftsman shelf before leaving the warehouse.
The company runs 16 facilities across India, including new ones at Bhiwadi (Rajasthan) and Kothavadi (Coimbatore), plus a greenfield setup at Shoolagiri, Hosur (started operations in October 2025).
So basically:
They cast aluminium, machine steel, and store your boxes.
It’s like Godrej met Bharat Forge and had a Coimbatore baby.
Commentary: Revenue zoomed 65%, but PAT grew “only” 48%. Aluminium expansions deliver volume, but not yet fat margins. The company’s like a bodybuilder — bulked up, but still working on definition.
5. Valuation Discussion – Fair Value Range
Let’s crunch the numbers before the CFO does yoga on them:
Method 1: P/E-based EPS (annualized) = ₹152 Industry median P/E = 32.4x → Fair Value Range = ₹152 × (32–40) = ₹4,864 – ₹6,080
Method 2: EV/EBITDA-based EV = ₹19,285 Cr; EBITDA (FY25) = ₹1,009 Cr → EV/EBITDA = 19.1x Industry average ~15x → Fair Value Range = (15–18) × 1,009 = EV ₹15,135–₹18,162 Cr → Equity Value (subtract ₹3,311 Cr debt) = ₹11,824–₹14,851 Cr Per-share fair value = ₹4,950 – ₹6,220
Method 3: DCF (educational estimation) Assuming 12% growth next 5 years, WACC 11%, terminal 6% → equity value around ₹5,000–₹6,400 per share.
Educational Fair Value Range: ₹4,800 – ₹6,400 (This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
New Plants Everywhere: Coimbatore, Bhiwadi, Hosur — if you throw a spanner in Tamil Nadu, it’ll probably land in a Craftsman factory.
