Craftsman Automation Ltd.growth intact, aluminium margin hit, net debt 1.7-1.8x

Craftsman Automation's Q2 FY27 call, held on 29 October 2026, was made up of opening remarks by Chairman and Managing Director Srinivasan Ravi and questions, with no prepared financial summary.

The Chairman said the company weathered the war and a sharp commodity spike, is still creating capacity, and will keep growing in H2 and the next two financial years, with a 15% real-terms CAGR committed. Standalone growth was about 35% in real terms. Aluminium margins fell as extra raw material bought during a shortage met falling prices and gas costs rose, and new plants are still ramping; compensation talks with customers should help over the next two quarters.

Net debt is about ₹3,000 crore, and management targets 1.7x to 1.8x net debt to EBITDA for FY27, with Q3 capex of ₹500 crore to ₹600 crore. Data-centre stationary engines should bring revenue from FY29, peaking near $100 million in FY30. Tractors will contract for two quarters, legacy products need price resets, and the company avoids large investments abroad.