Craftsman Automation Limited (CRAFTSMAN) — Announcement

📢 Key Event
Crisil upgrades Craftsman Automation's long-term rating outlook to Positive while reaffirming AA- rating

🔄 What Changed
Long-term rating outlook revised from Stable to Positive; debt reduction target set for FY27

🔮 What's Next
Debt reduction target of Rs 3,000–3,100 crore by fiscal 2027; gearing ratio target below 0.7x

💡 Investor Takeaway
The upgrade signals stronger financial health and reduced leverage, enhancing investor confidence in Craftsman's capital management and growth sustainability.

Crisil Ratings reaffirmed Craftsman Automation's AA-/Positive long-term rating and upgraded its outlook to Positive, citing strong revenue growth (42% YoY to Rs 8,082 crore in FY26), healthy 15.8% operating margins, and Rs 1,500 crore debt reduction from QIP proceeds. The upgrade reflects improved financial risk from equity fundraising and targeted debt reduction to below Rs 3,100 crore by FY27, with gearing below 0.7x and interest coverage of 5.5-6.0x. Sunbeam Lightweighting Solutions remains under Rating Watch with Positive Implications pending merger integration. This credit enhancement underscores robust operational momentum and proactive capital management, reducing leverage while expanding market share in the auto sector.

📄 View Original Announcement (PDF)

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