Craftsman Automation Ltd (CRAFTSMAN) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- The stationary engine business has a $100 million order book, with revenues commencing in FY29 and peaking in FY30, signaling a major new long-term revenue stream.
- Management is negotiating price increases of 6% to 20% on the value-add portion of legacy contracts to combat significant cost inflation, with outcomes expected in two quarters.
- Capex will moderate after a significant H1 surge, with a guided INR 500-600 crore spend for Q3 and a target net debt-to-EBITDA ratio of 1.7-1.8x for FY27.
Performance Overview
- The company is confident in maintaining its growth trajectory into H2 and the next two financial years, supported by past investments and a strong product pipeline.
- Significant capacity has been added and is still being created, although not all new capacities are fully operational or have full order pipelines yet.
- Craftsman Automation is actively negotiating price corrections and resets with customers for legacy products to offset increased manpower, energy, and capital goods costs.
- The company is strategically winning new orders, becoming more selective about customers and products to focus on lifecycle profitability and larger, more profitable opportunities.
- While the Powertrain and Aluminum segments are poised for strong growth, temporary margin pressures were experienced in the Aluminum segment due to inventory buildup and raw material price volatility.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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