India · Delayed Price · Currency is INR Craftsman Automation Earnings Call Transcripts
Fiscal Year 2026
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Alloy wheel and aluminum businesses are ramping up, with restructuring and consolidation efforts underway to improve margins and efficiency. Revenue growth in the mid-teens is expected, with a focus on deleveraging and managing inflationary cost pressures.
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Aluminum margins declined due to new plant ramp-up and commodity volatility but are expected to recover as utilization improves. Industrial & Engineering and Powertrain segments show strong growth prospects, while Sunbeam's restructuring is set to enhance efficiency and margins.
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H1 FY26 sales surged 60% year-over-year to INR 3,786 crore, with robust growth in aluminum and powertrain segments. CapEx of INR 1,000 crore is planned, targeting 20% ROC, and Sunbeam aims for double-digit EBITDA margin in FY27.
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EBITDA margin reached 15% with strong growth in aluminum and powertrain segments, while net debt rose to INR 2,400 crore due to acquisitions and CapEx. FY 2025 guidance remains unchanged, with aluminum expected to outpace powertrain and CapEx of INR 800 crore planned.
Fiscal Year 2025
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EBIT guidance for FY25 was achieved ahead of schedule, with strong growth expected across powertrain, aluminum, and storage segments. FY26 guidance remains at INR 7,000 crore revenue and INR 1,100 crore EBITDA, supported by margin improvements, consolidation, and robust order books.
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Major investments and acquisitions have driven expansion, with new plants and integration costs impacting margins in the short term. Revenue and EBITDA are projected to grow significantly next year, supported by strong order books and strategic capacity additions.
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H1 results were slightly lower year-over-year due to extraordinary expenses from new plants and acquisitions, but three acquisitions and two greenfield projects are set to drive revenue above INR 7,000 crore next year. Debt should normalize as land sales proceed, and EBITDA margins are targeted at 17-18%.