Synopsis: Craftsman Automation Limited reported its strongest-ever annual performance in FY26, with net profit surging 91% year-on-year to Rs. 384 crore and revenue crossing the Rs. 8,000 crore mark for the first time. Strong growth in its aluminium products business helped drive earnings, while rising debt levels and a newly approved Rs. 2,000 crore fundraise suggest the company is entering an aggressive expansion phase.
Craftsman Automation Limited gained 5.18% to Rs. 9,379.50, emerging as a strong industrial mover after hitting an intraday high of Rs. 9,388. The stock saw solid activity with Rs. 44.03 crore turnover, while maintaining strong long-term momentum with 21.36% YTD gains and an impressive 76.78% 1-year return, reflecting continued strength in the auto components and manufacturing sector.
Craftsman Automation delivered its best financial year so far, reporting consolidated revenue of Rs. 8,069 crore in FY26, marking a strong 41.8% growth compared to Rs. 5,690 crore in FY25. The company’s profitability improved even faster, with net profit rising 91.2% to Rs. 384 crore, nearly doubling from Rs. 200 crore reported last year.
Profit before tax also saw a sharp jump, increasing to Rs. 534 crore from Rs. 270 crore a year ago, while earnings per share climbed to Rs. 160.96 compared to Rs. 83.68 in FY25, reflecting the company’s significantly stronger bottom-line performance. The board has also proposed a final dividend of Rs. 11.25 per share, subject to shareholder approval at the upcoming annual general meeting.
Aluminium Business Emerges as Biggest Growth Driver
The biggest contributor to this strong performance was the company’s Aluminium Products division, which has now become the largest segment within the business. Revenue from this segment jumped to Rs. 4,789 crore, compared to Rs. 3,033 crore last year, registering nearly 58% annual growth. The division now contributes well over half of the company’s total revenue, making it the primary engine of growth for Craftsman Automation.
The Powertrain business also delivered steady growth, generating revenue of Rs. 2,179 crore, while the Industrial and Engineering segment contributed Rs. 1,102 crore, continuing its own growth momentum. At the profit level, the aluminium division remained the biggest contributor, further highlighting management’s increasing focus on this high-growth vertical.
Expansion Strategy Pushes Debt Higher
While operational performance remained extremely strong, the balance sheet shows the company is currently investing aggressively for future expansion. Total assets increased significantly to Rs. 8,978 crore, but this growth has largely been funded through borrowings. The company’s debt-to-equity ratio increased sharply from 0.72 to 1.02 during FY26, showing that Craftsman has taken on substantially more debt to finance expansion. Total borrowings rose from Rs. 2,054 crore to Rs. 3,340 crore, as the company continued investing heavily in new manufacturing capacity.
This aggressive expansion is visible in capital expenditure spending as well. During FY26, Craftsman invested nearly Rs. 1,186 crore into property, plant and equipment, while ongoing projects under capital work-in-progress stood at Rs. 389 crore, indicating that major capacity additions are still underway.
Despite the higher debt, operational efficiency remained healthy, with return on equity improving from 9% to 13%, while return on capital employed improved from 12% to 16%, suggesting that management is deploying borrowed capital effectively so far.
In another major development, shareholders recently approved a proposal allowing the company to raise up to Rs. 2,000 crore through multiple funding options, including equity issuance, QIP, rights issue, preferential allotment, or private placements. The resolution received over 97% shareholder approval, giving management significant flexibility to raise fresh capital whenever needed.
This signals that Craftsman Automation is preparing for another major phase of expansion, likely focused on increasing manufacturing capacity and funding future acquisitions. Notably, this follows an earlier Rs. 1,200 crore QIP fundraising completed in FY25, showing that the company has remained consistently aggressive in pursuing long-term growth opportunities.
Acquisition-Led Growth Continues
Apart from organic growth, Craftsman Automation continued expanding through acquisitions during FY26. One of its wholly owned subsidiaries acquired Suprash Developers Private Limited and its subsidiary for Rs. 145 crore, continuing the company’s strategy of strengthening its manufacturing ecosystem.
This follows earlier acquisitions completed in FY25, including Sunbeam Lightweighting Solutions and manufacturing assets in Germany, which helped expand the company’s presence both in India and overseas. Management appears focused on building scale aggressively through a combination of internal expansion and strategic acquisitions.
Outlook: Company Entering High-Growth Investment Cycle
Craftsman Automation appears to be entering an aggressive long-term growth cycle. Revenue has now crossed Rs. 8,000 crore for the first time, profitability has nearly doubled, aluminium products are emerging as the company’s strongest growth engine, and management has secured approval for another Rs. 2,000 crore capital raise.
At the same time, rising debt levels show that the company is making a major bet on future demand growth, particularly from the automotive sector. For investors, the key question going forward will be execution.
If management successfully converts this heavy capital spending into sustained revenue growth, Craftsman Automation could be entering its next major expansion phase. However, the rising leverage also means investors should closely monitor debt levels, project execution, and future profitability over the next few quarters.
Craftsman Automation Limited is a Coimbatore-based engineering and auto components manufacturer supplying precision-engineered products to automotive, industrial, and aluminium sectors. The company operates across powertrain systems, industrial engineering, and aluminium products, serving both domestic and global OEM customers.
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