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Informist, Tuesday, Jul. 28, 2026

By Deesha Jadhav

MUMBAI – Craftsman Automation Ltd. is expected to report sharply higher net profit and revenues for the June quarter due to growth in its aluminium segment and recovery in the powertrain segment, according to the brokerages tracking the company.

The company is expected to report a consolidated net profit in the range of INR 909 million and INR 995 million, according to the estimates from three brokerages. The highest estimate of net profit is INR 995 million from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 909 million from ICICI Securities Ltd.

At the lower end of the band, the net profit will be around 17% higher on-year and at the upper end it will be nearly 28% higher from INR 778 million. 

The consolidated net sales of Craftsman Automation are seen between INR 21.17 billion and INR 21.40 billion, according to the estimates. The highest estimate of INR 21.40 billion is from Anand Rathi and the lowest is INR 21.17 billion from Motilal Oswal Financial Services Ltd. At the lower end of the band, the net sales are expected to be 19% higher on year and at the upper end, it is likely to be 20% higher from INR 17.84 billion. 

The brokerages expect Craftsman Automation's revenues to grow on the back of healthy demand in the automotive industry. The revenue growth will also be supported by robust growth in the production of aluminium components. The ramp-up in aluminium production was supported by the company's wholly-owned subsidiaries Sunbeam Lightweighting Solutions Pvt. Ltd. and Craftsman Fronberg Guss GmbH.

The auto ancillary sector is expected to post around 15% revenue growth in the quarter, Motilal Oswal said. The profit growth is likely to remain lower due to margin pressure from higher raw material costs and delayed cost pass-through. Craftsman Automation is identified as one of the key performers, with an expected net profit growth of 24% on year, the brokerage said.

The brokerage said demand across the automobile industry remained healthy during the quarter and supported the growth in original equipment manufacturing in the auto ancillaries segment. However, elevated commodity prices are expected to weigh on profitability in the near term. The brokerage believes that easing input cost pressures, price hikes undertaken by original equipment manufacturers, and stable demand across segments should improve the sector's outlook in the coming quarters.

The net profit for the companies in the automotive industry is likely to decline 14% due to margin contraction, Anand Rathi said. 

Craftsman Automation's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected in a range of INR 3.15 billion and INR 3.16 billion, according to estimates from two brokerages. The higher estimate is from ICICI Securities and the lower is from Motilal Oswal.

Craftsman Automation's EBITDA is likely to grow 20% on year, Anand Rathi said. The EBITDA margin is likely to decline for automobile companies due to high input costs and commodity prices caused by the war in West Asia. However, the depreciation of the rupee is likely to support the margin, the brokerage said.

The EBITDA margin is likely to remain flat due to higher operating leverage and the recent acquisition of Sunbeam and Craftsman Fronberg, ICICI Securities said. Key margins will be affected sequentially due to the elevated aluminium price.

Craftsman Automation is an Indian engineering company which specialises in precision manufacturing and diversified engineering across three primary business segments, including powertrain, aluminium products, and industrial and engineering. The company caters to diverse sectors including medium and heavy commercial vehicles, passenger vehicles, tractors, off-highway vehicles, and the warehousing industry.

The company will report its earnings for June quarter Wednesday. At 0929 IST, shares of Craftsman Automation traded at INR 9,322 per share on the National Stock Exchange, unchanged from Monday. The stock rose nearly 8% since the company announced its March quarter earnings on May 7.

Of the three research reports on the company available with Informist, two have a "buy" recommendation on the stock with an average target price of INR 9,950 per share, which is around 7% higher than the stock's current market price. The one brokerage with a "hold" recommendation has a target price of INR 8,315.

Following are the Apr-Jun earnings estimates for Craftsman Automation from three brokerages, in descending order of the estimate of net profit, in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Shubhayan Bhattacharya

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