Craftsman Automation Limited (CRAFTSMAN)

Automobile and Auto Components · Auto Components · NSE · Updated 15 July 2026
₹9,158 ↑ 49.42% (1Y)

🎯 Key Takeaways

  • Craftsman Automation Limited is in a high-growth phase driven by strong top-line expansion and improving operational efficiency, transitioning from a mature cash cow to a scalable growth-oriented player in the auto components sector. Management is actively de-leveraging the balance sheet and targeting strategic capital allocation to sustain momentum.
  • Revenue grew 29.8% QoQ to ₹1,576 in Q3FY25.
  • ⚠️ 1) Margin volatility remains a concern, with operating and net profit margins fluctuating despite stable OPM, potentially due to cost inflation or dem
Market Cap
₹20,188
P/E Ratio
97.3
Div Yield
0.00%
Promoter
0.0%

📖 The Story

Craftsman Automation Limited is in a high-growth phase driven by strong top-line expansion and improving operational efficiency, transitioning from a mature cash cow to a scalable growth-oriented player in the auto components sector. Management is actively de-leveraging the balance sheet and targeting strategic capital allocation to sustain momentum.

📰 What's Happening

In the latest filings, Crisil upgraded the company's long-term rating outlook to Positive, citing 42% YoY revenue growth to Rs 8,082 crore in FY26 and a 15.8% operating margin, supported by Rs 1,500 crore debt reduction from QIP proceeds. The company completed a qualified institutional placement raising nearly Rs 200 crore, increasing paid-up capital and share count. Additionally, the 40th AGM is scheduled for 23 July 2026 to approve FY2025-26 results, declare a final dividend of ₹11.25 per share (225% payout), and re-appoint key directors including Chairman Srinivasan Ravi for a term until 2031.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricQ4FY23Q1FY24Q2FY24Q3FY24Q4FY24Q1FY25Q2FY25Q3FY25
Revenue9801,0381,1791,1301,1051,1511,2141,576
Operating Profit193218242224212202199193
OPM %19.2%20.6%20.1%19.5%18.7%17.1%15.9%12.6%
Net Profit80811048171596213
EPS₹36.76₹35.25₹44.75₹34.61₹29.50₹24.82₹27.24₹5.42

Quarterly revenue has grown steadily from ₹980 crore in Q4FY23 to ₹1,576 crore in Q3FY25, reflecting strong demand and execution in core segments. However, operating margin and net profit have shown volatility, with Q2FY25 seeing a sharp decline in NP to ₹62 crore and EPS to ₹27.24, followed by partial recovery. This inconsistency suggests margin pressure in certain quarters, possibly due to operational or forex headwinds, despite OPM holding firm around 12-18%. The company's ability to sustain growth will depend on managing cost structures and capitalizing on scale.

🔮 Management Outlook & What's Next

Management has provided clear forward-looking targets, including reducing net debt below Rs 3,100 crore by FY27 and maintaining a gearing ratio below 0.7x, supported by proceeds from the QIP. Crisil's upgrade underscores confidence in this capital efficiency strategy. However, no forward earnings guidance was provided during the AGM announcement. Management emphasized proactive debt reduction and sustainable growth, aligning capital structure with long-term financial resilience.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Auto Components

Company MCap (₹ Cr) P/E ROCE ROE D/E
Samvardhana Motherson International Limited 1.37 L Cr 30.6
Bosch Limited 1.11 L Cr 55.0
Bharat Forge Limited 91,463 99.6
UNO Minda Limited 64,785 66.7
Schaeffler India Limited 62,984 67.0
Tube Investments of India Limited 55,168 47.4
MRF Limited 54,558 31.1
Balkrishna Industries Limited 41,530 23.4
Endurance Technologies Limited 35,848 44.7
Sona BLW Precision Forgings Limited 35,667 58.5

⚠️ Risk Factors

1) Margin volatility remains a concern, with operating and net profit margins fluctuating despite stable OPM, potentially due to cost inflation or demand shifts. 2) Execution risk in ESG targets, particularly in achieving 100% renewable energy by FY 2030 and 40% MSME procurement by FY 2028, which require supply chain transformation. 3) No forward earnings guidance leaves uncertainty on near-term profitability trajectory, especially amid competitive pressures in the auto components space.

📋 Recent Filings

🧠 Analyst's Read

Craftsman Automation is executing a disciplined capital management strategy with strong ESG integration and credit profile improvement, but near-term profitability remains uneven. Investors should monitor margin recovery in upcoming quarters and progress on debt reduction targets, while remaining cautious about execution risks in sustainability and supply chain initiatives.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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