Craftsman Automation Limited has released the transcript of its earnings conference call concerning the unaudited financial results for the quarter and nine months ended December 31, 2025. The call was held on Thursday, January 29, 2026, at 4:00 PM IST. The transcript is now available on the company's website, www.craftsmanautomation.com. During the call, management discussed various aspects of the business. Regarding aluminium standalone margins, the Chairman and Managing Director, Mr. Srinivasan Ravi, noted that while commodity prices have seen an upward surge, impacting margins optically, the value addition remains intact. He mentioned operational losses in the first quarter due to the startup of a new plant in Shoolagiri, which affected standalone results but expects improvement from Q4 onwards. On the alloy wheel segment, utilization is below 50% of the 5.8 million capacity due to product variety, BIS approvals, and model developments. Margins are currently lower than high single digits but are expected to reach optimal levels by Q3 of the next financial year, with utilization also projected to be over 60-70% by then. The Powertrain segment is seeing positive signs, with commercial vehicles and tractors performing well. The company anticipates growth as commercial vehicles move towards higher engine and gearbox capacities. For Sunbeam, the heavy-weight lifting phase is over, with margins expected to improve from Q2 of next year, aiming for a 10% EBITDA level by the end of the current financial year, with an exit run rate higher than 10% in Q4. The Industrial and Engineering segment's EBIT margin is sustainable, with expected margin expansion in the next financial year due to operating leverage and increasing demand. The company is a significant player in static racking and automated storage. Regarding debt, the consolidated net debt to EBITDA is currently 2.55. The company plans to reduce debt, potentially through land sales, aiming for a debt-to-EBITDA ratio between 1 to 1.5 in the medium term. The company is incurring significant capex, around INR 1,000 crores for the current year, to support growth and new technologies. Sunbeam has sold its aluminium piston asset, generating around INR 30 crores in revenue with two customers, to simplify its business model and focus on core competencies. The company is also rationalizing its customer base, exiting smaller customers to focus on larger, more valuable ones. Across segments, passenger vehicles contribute 34% to consolidated revenue, followed by two-wheelers (24%), commercial vehicles (12%), and storage (9%). The company sees benefits from light-weighting across ICE, hybrid, and EV segments, with EVs expected to see a more predominant use of aluminium due to weight reduction benefits for range and cost.
