Craftsman Automation sets ₹850 cr capex in FY25, pegs consolidated topline at ₹7,000 cr in FY26

Craftsman Automation Ltd, a leading manufacturer of automotive and industrial components, is poised for substantial revenue growth following recent acquisitions and strategic expansions. The company anticipates its consolidated revenue to reach ₹7,000 crore in the next fiscal year, while setting a capex guidance of ₹850 crore for the current fiscal.

Positive outlook

The Coimbatore-headquartered company, which is integrating multiple projects simultaneously, has traditionally not provided revenue guidance, but with recent shifts in its growth trajectory, including several acquisitions, Craftsman now projects a strong financial outlook. “We are looking at consolidated revenue growing from ₹5,500 crore to about ₹7,000 crore in FY26,” said Srinivasan Ravi, Chairman and Managing Director, during the company’s Q3FY25 earnings call.

This growth estimate is not a direct comparison, as some acquisitions occurred in the latter part of the current fiscal year. The company anticipates its consolidated EBITDA to rise from ₹850 crore to over₹1,100 crore, a 29 per cent increase, while EBIT is projected to grow 40 per cent, from ₹500 crore to ₹700 crore.

Ravi explained that around 90-95 per cent of the company’s investments have been directed towards organic growth and domestic acquisitions, with only ₹150 crore invested outside India, specifically in a subsidiary supporting the growth of stationary engines.

Key investments

Craftsman has made significant strategic investments of about ₹1,015 crore in this fiscal. Key investments include acquiring the remaining 24 per cent stake in DR Axion for ₹250 crore, a ₹606 crore investment in Sunbeam as OCD (part of which is expected to be recouped through a land sale), and ₹154 crore allocated to Craftsman Germany. Of this, ₹94 crore was used for acquisition and ₹60 crore for working capital needs.

Meanwhile, the company is in the process of relocating the Gurgaon factory of Sunbeam, now a wholly-owned subsidiary, with the project set for completion by Q1FY26. Once finished, the land sale will be considered. About 50 per cent of employees who opted for VRS were relieved in November 2024, with the remaining to be settled in April or May of this year.

Ravi said that in this fiscal the company would incur a total capex of about ₹850 crore, of which ₹700 crore has already been made. This includes ₹219 crore in a greenfield project in Bhiwadi.