Craftsman Automation Q2 FY27 results: net profit up 68.6% to ₹153.18 crore, revenue up 47.1%

How did Craftsman Automation perform in Q2 FY27?

Craftsman Automation reported consolidated revenue of ₹2,945.20 crore for Q2 FY27, the July–September 2026 quarter, up ₹943.61 crore or 47.1% from ₹2,001.59 crore in Q2 FY26. EBITDA was ₹391.84 crore against ₹301.90 crore, and the EBITDA margin was 13.3%, down 1.8 percentage points from 15.1%. Total income rose ₹953.75 crore to ₹2,964.93 crore.

Profit before tax rose 63.9% to ₹204.89 crore from ₹124.98 crore, and profit after tax was ₹153.18 crore against ₹90.86 crore, an increase of ₹62.32 crore or 68.6%. Basic EPS was ₹58.57 against ₹38.09. The net profit margin was 5.2%, up 0.7 percentage points. On a standalone basis, revenue was ₹1,848.25 crore and profit was ₹105.20 crore.

Against Q1 FY27, revenue rose ₹513.62 crore or 21.1% to ₹2,945.20 crore, while EBITDA increased ₹7.97 crore to ₹391.84 crore and the margin fell 2.5 percentage points from 15.8%. Profit after tax was ₹153.18 crore, up ₹2.63 crore or 1.7%, and basic EPS fell ₹3.68 or 5.9% to ₹58.57.

What changed in Craftsman Automation's costs and profit?

Total expenses rose ₹874.33 crore or 46.4% to ₹2,760.04 crore in Q2 FY27. Cost of materials was the largest increase, up ₹700.64 crore or 60.7% to ₹1,854.38 crore, while other expenses rose ₹139.84 crore or 30.4% to ₹599.97 crore. Employee cost increased ₹36.98 crore or 25.6% to ₹181.22 crore, depreciation ₹17.37 crore or 15.9% to ₹126.38 crore, and finance costs ₹3.29 crore or 4.3% to ₹80.30 crore.

Other income rose ₹10.14 crore or 105.7% to ₹19.73 crore. The company reported no exceptional item in Q2 FY27, against an exceptional charge of ₹0.49 crore in Q2 FY26. Tax expense rose ₹17.81 crore or 51.7% to ₹52.28 crore.

Management said on the earnings call that the correction in aluminium margins was temporary and reflected higher inventory built during a raw-material shortage and the subsequent fall in prices. It also said price increases being negotiated with customers, or compensation for aluminium price corrections, should play out over the next two quarters. On the call, Chairman and Managing Director Srinivasan Ravi said: "I have to be candid here, but I think wherever the fairness is there, yes, we will get it done."

How did the first half of FY27 go?

In the first half of FY27, Craftsman Automation reported consolidated revenue of ₹5,376.78 crore, up ₹1,591.19 crore or 42.0% from ₹3,785.59 crore in H1 FY26. Total income rose 42.6% to ₹5,419.59 crore, and profit before tax increased 85.5% to ₹405.29 crore from ₹218.48 crore.

Profit after tax for H1 FY27 was ₹303.73 crore, up ₹143.27 crore or 89.3% from ₹160.46 crore, and basic EPS was ₹120.65 against ₹67.26, a rise of ₹53.39 or 79.4%.

What do the balance sheet and cash flow show?

Total assets stood at ₹11,950.81 crore on 30 September 2026, up from ₹8,978.30 crore at 31 March 2026. Total equity rose to ₹5,510.76 crore from ₹3,264.06 crore, while borrowings were ₹3,618.60 crore against ₹3,340.63 crore. Cash and cash equivalents increased to ₹495.46 crore from ₹144.83 crore. Inventories were ₹2,511.43 crore, trade receivables ₹1,532.19 crore, and trade payables ₹1,696.11 crore.

Cash flow from operating activities in H1 FY27 was negative ₹514.64 crore, compared with negative ₹126.04 crore in H1 FY26. Investing outflow widened to ₹1,085.87 crore from ₹568.62 crore, while financing inflow rose to ₹1,951.18 crore from ₹737.51 crore. Capital expenditure was ₹1,106.97 crore in H1 FY27 against ₹569.22 crore a year earlier.

How has Craftsman Automation done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters. It moved from ₹1,576.09 crore in Q3 FY25 to a quarterly high of ₹2,945.20 crore in Q2 FY27, an increase of 21.1% from Q1 FY27. The EBITDA margin peaked at 16.1% in Q4 FY26 and was 13.3% in Q2 FY27.

Profit after tax rose from ₹12.93 crore in Q3 FY25 to ₹153.18 crore in Q2 FY27, with year-on-year growth in each of the last six quarters. From the previous quarter, profit increased 1.7%, while the EBITDA margin fell 2.5 percentage points and the net profit margin fell 1.0 percentage point to 5.2%.

Which businesses drove the quarter?

Powertrain reported revenue of ₹746.25 crore in Q2 FY27, up 38.7% from ₹537.97 crore in the year-ago quarter, with EBIT of ₹134.66 crore against ₹78.75 crore. The segment EBIT margin was 18.0%.

Aluminium Products recorded revenue of ₹1,819.45 crore, up 51.1% from ₹1,204.05 crore, while EBIT fell to ₹136.42 crore from ₹141.44 crore. The segment EBIT margin was 7.5%. Industrial & Engineering reported revenue of ₹379.50 crore, up 46.2% from ₹259.57 crore, with EBIT of ₹28.92 crore against ₹3.76 crore and an EBIT margin of 7.6%.

What else did the company announce?

The board of Craftsman Automation met on 28 October 2026 and approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review reports issued by the statutory auditors. The same-day filings covered the results and an investor presentation; no dividend or fund-raising decision was reported in those filings.

The company filed an investor presentation for the quarter and half year ended 30 September 2026 with BSE on 29 October 2026 under Regulation 30 and Regulation 46, stating it was also available on the company website. The presentation recorded FY27 Q2 revenue growth of 47%.

What did Craftsman Automation's management say?

Management maintained a 15% revenue CAGR in real terms for H2 FY27 and the next two financial years, supported by new powertrain and aluminium capacity, and said some years may exceed the target. It expected gross-profit growth of approximately 30% year on year to continue for the next two to three quarters, subject to energy and aluminium headwinds. Stationary-engine revenue is targeted at 30% by FY28, 50% by FY29 and an at-least-$100-million run rate by Q3 or Q4 FY30.

Management guided to consolidated capex of Rs. 500 crores-Rs. 600 crore in Q3 FY27, with Q4 capex expected to be materially lower as long-term projects are phased, and to FY27 consolidated net debt/EBITDA of 1.7x-1.8x. It expects the aluminium price-cost impact to be minimal in Q3 and absent in Q4, while the timing of OEM price resets remains uncertain. A gross-margin or value-add reset of roughly 6%-7% to 15%-20% is needed depending on commodity, product and order vintage, with benefits expected over the next two quarters.

On risks, management flagged war and commodity volatility affecting aluminium supply and input costs, delays in customer price-reset negotiations, working-capital and start-up drag from new aluminium plants, elevated debt limiting near-term deleveraging, and expected contraction in some powertrain lines, especially tractors. Chairman and Managing Director Srinivasan Ravi said: "The same machines do not understand whether it is EV or ICE, but light weighting of the passenger car is here to stay." He also said: "I want to make one very clear statement is, we are not a fan of investing outside India in a big way because we understand the risks which are associated."

How did Craftsman Automation shares react?

By the next day's close the stock was down 2.7% from its pre-results close. The Auto Components & Equipments industry median was up 0.8% on the reaction day and up 0.3% by the next day's close, so Craftsman Automation's move was 0.2 percentage points below the sector on the reaction day and 2.9 percentage points below it by the next close.

Earlier reaction-day moves were up 7.2% on 29 July 2026, up 12.5% on 7 May 2026, up 2.4% on 28 January 2026, down 0.1% on 8 November 2025, up 3.6% on 29 July 2025, down 2.6% on 7 May 2025, down 2.8% on 29 January 2025 and up 0.9% on 23 October 2024.

How did other Auto Components & Equipments companies do?

Of the 46 Auto Components & Equipments companies compared for Q2 FY27, the median revenue growth was 33.6%. Craftsman Automation's revenue growth of 47.1% was higher than that of 37 peers that grew more slowly and lower than that of 9 peers that grew faster.

Among the 47 peers for which profit was compared, 37 reported higher profit.