1. At a Glance – Blink and You’ll Miss the Debt
Craftsman Automation is currently trading at ₹7,790, flexing a ₹18,582 Cr market cap and behaving like it just discovered fire. The stock is up 17% in 3 months, 77% in one year, and trades at a spicy 71× earnings, while ROCE politely sits at 11.7%, wondering how it got invited to this valuation party.
Latest quarter (Dec FY26) shows ₹2,057 Cr revenue, ₹312 Cr EBITDA, and ₹107 Cr PAT. Quarterly profit growth is a headline-grabbing 477% YoY, mostly because last year’s base was flatter than South Indian dosa. Debt stands tall at ₹3,311 Cr, with management openly saying it could hit ₹3,500 Cr by FY26. Promoters hold 48.7%, zero pledge, but also a ~10% dilution over three years.
This is not a sleepy auto ancillary anymore. This is a capital-hungry, expansion-crazy, aluminium-obsessed precision monster. Question is — monster returns or monster leverage?
2. Introduction – From Coimbatore Workshop to Wall Street Valuation
Craftsman Automation started in 1986, back when CNC machines were exotic and Coimbatore entrepreneurs solved problems with lathes, not PowerPoints. Fast forward four decades, and the company now runs 16 manufacturing facilities, including Germany, supplies critical engine and transmission components, and has quietly pivoted from boring powertrain machining to aluminium-heavy future-facing components.
But the journey hasn’t been smooth. The company is mid-way through one of the most aggressive capex and acquisition cycles in Indian auto ancillary history. Aluminium share has jumped from 20% in FY22 to 60% in H1 FY26, thanks to DR Axion integration. Meanwhile, legacy powertrain is shrinking in revenue mix, not because it’s dying, but because aluminium is sprinting like it stole something.
Investors love the growth story. Credit rating agencies are cautiously optimistic. Bankers are smiling. Balance sheet is sweating.
So the real question — is Craftsman building a future-proof auto component empire, or just levering
up at peak optimism?
3. Business Model – WTF Do They Even Do?
Think of Craftsman Automation as the guy who builds the internal organs of vehicles. You never see them, but without them, nothing moves.
Three Engines of Business:
1️⃣ Aluminium Products – The New Favourite Child
This segment now contributes 60% of H1 FY26 revenue, up from 20% in FY22. It manufactures crankcases, cylinder blocks, gearbox housings, and structural aluminium parts for 2W, PVs, HCVs, and power transmission.
Revenue here grew 380% between FY22–FY24, largely due to DR Axion. This is where EV transition, lightweighting, and future growth live.
2️⃣ Powertrain – The Mature Middle Child
Now down to 27% of revenue from 52% in FY22. This includes cylinder heads, camshafts, gearboxes, turbochargers — all solid, cash-generating, but not sexy anymore.
Margins are stable, growth is okay, but nobody on Dalal Street writes poetry about powertrain.
3️⃣ Industrial & Engineering – The Side Hustle
Contributes 13%, split into:
- Storage solutions (racking, ASRS, warehouses)
- High-end sub-assemblies, SPMs, toolrooms
Revenue grew 19% FY22–FY24, helped by e-commerce, pharma, and cold storage demand. It’s not flashy, but it diversifies cyclicality.
So yes, they machine metal, but they also machine balance sheets.

