Craftsman Automation Limited is deploying capital expenditure of around INR 10 billion to scale up manufacturing operations, as rising order inflows and capacity constraints drive a sustained investment cycle across aluminium, powertrain and engineering businesses. The company said the scale-up follows a sharp expansion in operations, with approximately INR 10 billion added to revenue in the current year.
The capex is aimed at expanding capacity and strengthening infrastructure to support larger and longer-cycle original equipment manufacturer (OEM) programmes. “We are looking at stand-alone capex for Craftsman around close to INR 1,000 crores this year because we have added quite significant revenue,” said Srinivasan Ravi, Chairman and Managing Director of Craftsman Automation, during the earnings call.
Aluminium remains a key area of investment, particularly alloy wheels, where installed capacity stands at 5.8 million units per year. Utilisation is currently below 50 percent, reflecting customer validation timelines, regulatory approvals and the ramp-up of a new plant at Shoolagiri. Ravi said capacity utilisation is expected to improve as production stabilises, adding, “When the plant becomes optimal, I think by Q3 of next year, we should be reaching that level.”
In the powertrain segment, the company plans to increase capacity by 5 to 10 percent over the next 12 months starting January 2026, supported by improving demand and consolidation in the supplier base. Craftsman reiterated its long-term focus on internal combustion engine and hybrid platforms, despite slower-than-expected electric vehicle adoption. “We bet on ICE rather than on EV, and now we see that it is paying off,” Ravi said.
The company is also investing in DR Axion, where a new manufacturing plant is under development following recent order wins. Management indicated that margins may face short-term pressure due to pre-operative costs and low initial utilisation, with benefits expected to accrue as volumes scale over the medium term.
Beyond automotive applications, Craftsman is expanding its stationary engine components business linked to energy infrastructure and data centre demand. The business is progressing towards an annualised revenue run rate of about USD 0.06 billion, with a longer-term target of USD 0.1 billion by FY29–FY30. “We are on track with the USD 100 million revenue,” Ravi said.
At subsidiary Sunbeam, the company is simplifying operations by exiting non-core activities and smaller customers. Sunbeam recently divested an aluminium piston business generating around INR 0.3 billion in revenue as part of this rationalisation.
Despite the elevated investment cycle, management said balance sheet discipline remains a priority. Consolidated net debt to EBITDA stood at 2.55 times on an annualised basis, with a medium-term target of stabilising between 1.0 and 1.5 times. “Debt-to-EBITDA below two is comfortable, and we would like to stabilise at 1.5 when we have gone through this big growth cycle,” Ravi said.
Craftsman Automation Limited manufactures automotive and industrial components, including aluminium castings, powertrain systems and storage solutions, supplying domestic and global OEMs across passenger vehicles, commercial vehicles, two-wheelers and industrial applications.
