Craftsman Auto Q2 FY27 Results (NSE: CRAFTSMAN)
Signal: Margin pressure
The read
The growth trajectory remains strong, with consolidated revenue +47.1% YoY and Aluminium Products revenue +51.1%, but the operating quality is mixed: gross margin contracted 550bps to 39.8%, consolidated PAT growth of 68.6% exceeded EPS growth of 53.8% after the QIP, and operating cash flow was negative 51,464 lakh in H1FY27 despite 40,648 lakh of half-year profit before tax.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,945.2 Cr | +47.1% | +21.1% |
| Net profit | ₹153.18 Cr | +68.6% | |
| EPS | ₹58.57 | +53.8% | |
| EBIT margin | 39.8% gross margin |
P&L walk
Consolidated revenue increased to 294,520 lakh, +47.1% YoY and +21.1% QoQ, but gross margin fell to 39.8% from 45.3% as cost of sales and inventory movements grew faster than revenue; PAT nevertheless rose to 15,318 lakh, +68.6%, helped by operating scale and lower exceptional drag.
Segments
Aluminium Products drove consolidated revenue at 181,945 lakh, +51.1% YoY, but dragged segment profitability as result fell 3.5% to 13,642 lakh; Industrial & Engineering was the sharpest profit inflection, with result rising 669.1% to 2,892 lakh.
Key positives
- Consolidated revenue reached 294,520 lakh, +47.1% YoY and +21.1% QoQ, with Aluminium Products revenue up 51.1% YoY to 181,945 lakh.
- Powertrain segment result rose 71.0% YoY to 13,466 lakh, while Industrial & Engineering result rose 669.1% to 2,892 lakh.
- Finance cost grew only 4.3% YoY to 8,030 lakh and declined 6.8% QoQ, supporting PAT growth to 15,318 lakh, +68.6% YoY.
- PPE and CWIP rose to 4,44,062 lakh and 73,253 lakh, respectively, indicating continued capacity and asset expansion.
Key concerns
- Gross margin compressed 550bps YoY to 39.8% and 470bps QoQ, despite revenue growth of 47.1% YoY, indicating weaker cost absorption or mix in the consolidated group.
- Aluminium Products revenue grew 51.1% YoY but segment result fell 3.5% to 13,642 lakh, the clearest profitability drag within the operating segments.
- EPS growth of 53.8% to ₹58.57 lagged PAT growth of 68.6% after the QIP expanded the share base.
- Operating cash flow was negative 51,464 lakh in H1FY27 versus negative 12,604 lakh in H1FY26, with inventories at 2,51,143 lakh and trade receivables at 1,53,219 lakh.
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