Craftsman Automation Plans ₹850 Cr Capex for FY25, Targets ₹7,000 Cr Revenue by FY26.

Craftsman Automation Ltd, a leading player in automotive and industrial components manufacturing, is gearing up for substantial growth with a projected revenue target of ₹7,000 crore in FY26. The company has set a capital expenditure (capex) guidance of ₹850 crore for the current fiscal year.

Chairman and Managing Director Srinivasan Ravi shared the company’s optimistic financial outlook during the Q3FY25 earnings call, noting that Craftsman’s revenue is expected to increase from ₹5,500 crore to ₹7,000 crore by FY26. This growth estimate reflects the company’s recent strategic acquisitions and expansions.

The company also anticipates a significant rise in profitability, with consolidated EBITDA expected to grow by 29%, from ₹850 crore to over ₹1,100 crore. EBIT is forecast to increase by 40%, reaching ₹700 crore from ₹500 crore.

Ravi highlighted that about 90-95% of the company’s investments have been focused on organic growth and domestic acquisitions, with only ₹150 crore allocated to international investments. The company’s key acquisitions include a ₹250 crore buyout of the remaining 24% stake in DR Axion, a ₹606 crore investment in Sunbeam, and ₹154 crore for Craftsman Germany.

Craftsman has already invested ₹1,015 crore this fiscal, and is in the process of relocating Sunbeam’s Gurgaon factory, which is expected to be completed by Q1FY26. Once the relocation is finished, the company plans to sell the land. Additionally, about 50% of employees who opted for Voluntary Retirement Scheme (VRS) were relieved in November 2024, with the remainder to be settled by April or May 2025.

For the current fiscal year, Craftsman has already spent ₹700 crore of its ₹850 crore capex target, including ₹219 crore for a greenfield project in Bhiwadi.

HBL