CRAFTSMANNSECraftsman Automation LimitedMediumNeutral
Announced Mon, 4 Aug · 17:04 IST

Craftsman Automation Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementOrder Pipeline DisclosedCfo Debt Reduction RoadmapMgmt Evaded Key QuestionInvestor Communications View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Craftsman Automation reported consolidated EBITDA margin of around 15% in Q1 FY26, with net debt-to-EBITDA at 2.27x. Subsidiary revenues were DR Axion at INR408 crores, Sunbeam at INR291 crores, and Craftsman GmbH at INR67 crores. The Sunbeam Gurgaon plant ceased operations at end-May with all labor settled. The Kothavadi plant's $100 million revenue target by 2030 remains intact, with order book already crossing 50% of the target. Full-year guidance was maintained at INR7,000 crore revenue, INR1,100 crore EBITDA, and INR650-700 crore EBIT. Bhiwadi alloy wheel plant saw 20% sequential revenue growth, crossing INR50 crores. Capex guidance for FY26 stands at around INR800 crores targeting 20-25% growth. Net debt consolidated was reported at INR2,400 crores.

Likely market impact

Shareholders can take comfort from maintained full-year guidance and improving margin trajectory, particularly with Bhiwadi turning EBITDA-positive and Powertrain margins at a 4-quarter high of 15.2%. However, the INR2,400 crore net debt and capital-intensive expansion plans keep leverage elevated, though management expects debt-to-EBITDA to improve and Gurgaon land sale (valued at INR350+ crores) could meaningfully reduce debt.