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Informist, Tuesday, Oct. 27, 2026

 

By Deesha Jadhav

 

MUMBAI – Craftsman Automation Ltd. is expected to report substantial on-year growth in net profit for the September quarter, backed by sharp revenue growth driven by new business ramp-ups and robust automotive demand, according to brokerages tracking the company. However, rising commodity costs are likely to weigh on margins.

 

The company is expected to report a consolidated net profit in the range of INR 1.50 billion and INR 1.71 billion for September quarter, according to the estimates from three brokerages. The highest estimate for the net profit is from Anand Rathi Share and Stock Brokers Ltd. and the lowest is from

Motilal Oswal Financial Services Ltd. The net profit is expected to rise 64% on year at the lower end of the range and is expected to climb over 87% on year at the upper end of the range.

 

Craftsman Automation's consolidates net sales are projected between INR 23.35 billion and 26.20 billion for the September quarter, according to the estimates. The highest estimate for the company's net sales is from Anand Rathi and the lowest is from ICICI Securities Ltd. Net sales are expected to rise 17% on year at the lower end of the range and 31% at the upper end.

 

The auto ancillary company's revenue is expected to grow due to robust double-digit growth in aluminium production, ICICI Securities said. The revenues will also be supported by a ramp-up in the company's wholly-owned subsidiaries Sunbeam Lightweighting Solutions Pvt. Ltd. and Craftsman Fronberg Guss GmbH, Motilal Oswal said. Anand Rathi expects the company's revenue to rise due higher production volumes across the automotive segments, premiumisation, and price increases.

 

Craftsman Automation's net profit is expected to be among the stronger performers in the automobile components sector, according to Motilal Oswal. However, the brokerage expects profit growth across the automobile components sector to remain subdued, with aggregate net profit projected to increase only 4% due to pressure from rising commodity prices and delays in passing on higher input costs to customers.

 

ICICI Securities expects the company's earnings before interest, tax, depreciation, and amortisation for the reporting quarter to rise 36% on year to INR 4.11 billion from INR 3.01 billion. Meanwhile, Motilal Oswal expects the company's EBITDA to rise roughly 28% on year to INR 3.85 billion.

 

The EBITDA margin for the reporting quarter is likely to expand on year by 110 basis points to 16.2% from 15.1%, according to ICICI Securities. Improved operating efficiencies from recent acquisitions and higher operating leverage are expected to support margins, which will be partly offset by elevated commodity inflation, the brokerage added. Motilal Oswal expects margins to be affected sequentially due to delays in passing on aluminium price hikes.

 

Craftsman Automation is an engineering company focused on precision manufacturing and diversified engineering solutions across three key segments - powertrain, aluminium products, and industrial and engineering. It serves a wide range of industries, including medium and heavy commercial vehicles, passenger vehicles, tractors, off-highway vehicles, and warehousing.

 

The company will report its earnings for the September quarter Wednesday. Tuesday, shares of the company ended nearly 3% higher at INR 11,011 apiece on the National Stock Exchange. The stock has risen 11% since the company announced its June quarter earnings. Of the three research reports on the company available with Informist, two have a "buy" call on the stock with an average target price of INR 11,400 apiece, which is nearly 4% higher than the closing price Tuesday. One brokerage has a "hold" call on the stock.

 

Following are earnings estimates for Craftsman Automation for the September quarter from three brokerages in descending order of the estimate for net profit, in INR billion:

 

Brokerage Name	Net Sales	Net Profit	EBITDA
Anand Rathi Share and Stock Brokers Ltd.	26.20	1.71	-
ICICI Securities Ltd.	23.35	1.69	4.11
Motilal Oswal Financial Services Ltd.	24.84	1.50	3.85

 

End

 

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

 

Edited by Megha Rawat

 

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