Craftsman Automation: consolidated PAT +69% YoY to ₹153 Cr, OPM compresses to 13.3%

Craftsman Automation's consolidated PAT rose 68.6% YoY to ₹153.2 Cr on revenue of ₹2,945.2 Cr (+47.1% YoY), with the adjusted YoY PAT growth essentially unchanged (~67.9%) since the only one-off involved was a negligible ₹0.49 Cr exceptional loss in the year-ago quarter. QoQ the picture is flatter — revenue is up 21.1% on Q1 FY27's ₹2,431.6 Cr, but PAT grew just 1.7% from ₹150.6 Cr, consistent with margin pressure rather than a seasonal pop. The filing itself flags that the YoY consolidated comparison is not fully like-for-like: DR Axion, Sunbeam, Suprash Developers and Srikara Technologies were consolidated during FY26, so part of the revenue and profit growth is inorganic. The operating margin story is the real driver: consolidated OPM (EBITDA/revenue) compressed to 13.3% from 15.8% in Q1 FY27 and 15.1% a year ago. This traces to the Aluminium Products segment, where margin fell to 7.5% (₹136.4 Cr on ₹1,819.5 Cr) from 11.7% a year ago even as segment revenue grew 51% YoY — consistent with the newly consolidated, lower-margin DR Axion/Sunbeam entities diluting the blend. Powertrain (18.1% vs 14.6% YoY) and Industrial & Engineering (7.6% vs 1.5% YoY) segment margins both expanded, so the compression is isolated to the aluminium/casting business. Net profit margin still rose YoY to 5.2% (from 4.5%) despite the OPM hit, helped by a lower finance-cost ratio (2.7% of revenue vs 3.9% a year ago — the ₹2,000 Cr QIP completed in Q1 FY27 was used to pay down borrowings) and a lower effective tax rate (25.4% vs 27.5%). Standalone tells a stronger story than consolidated — standalone revenue grew 55.0% YoY to ₹1,848.3 Cr and standalone PAT grew 122.8% YoY to ₹105.2 Cr, both well ahead of the consolidated growth rates, underscoring that the core domestic business is outgrowing the newly added lower-margin subsidiaries. On guidance, management's FY27 capex plan of ~₹1,500 Cr (standalone ₹1,000+ Cr, DR Axion ₹430 Cr) looks on track to be exceeded on pace: H1 FY27 standalone capex (purchase of PP&E/intangibles) already stands at ₹871.4 Cr, ~87% of the full standalone guide in just two quarters. The company's other FY27-28 targets — Heavy HP engines toward USD 100M revenue by FY30 and Sunbeam EBIT reaching mid-teens by Q4 FY27 — are not separately disclosed this quarter, so neither can be verified yet; both remain open. No street consensus specific to Q2 FY27 could be located (only a stale FY27 full-year estimate of ~₹9,240 Cr revenue that predates the Q1 FY27 beat), so vsStreet is unknown rather than guessed. Corporate developments this quarter were incremental: a new German subsidiary, Craftsman Fronberg Precision GmbH, was incorporated 27 August 2026 for engine/engineering-component machining, and the company separately disclosed a minor ₹68.72 Lakh GST demand, neither of which is financially material to the quarter. Going into Q3 FY27, the key markers are whether the Aluminium Products segment margin recovers from 7.5% as the acquired entities integrate, and whether H2 capex pushes the full-year spend materially past the ₹1,500 Cr guide.