CRAFTSMAN's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,945.20 Cr (+47.10% YoY) and PAT growth of +68.60% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,945.20 Cr (+47.10% YoY) |
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| PAT (Q2) | Rs. 153.18 Cr (+68.60% YoY) |
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| EBITDA margin | 13.32% (-178 bps YoY) |
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| EPS (Q2) | Rs. 58.57 (+53.70% YoY) |
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| Market cap | Rs. 27,820.46 Cr |
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| CMP | Rs. 10,637.00 |
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Quarter Snapshot
Revenue grew 47.1% YoY to Rs.2,945.20 Cr with PAT up 68.6%, but EBITDA margin compressed 249 bps QoQ to 13.32% on aluminium pass-through lag, with the Aluminium segment margin at 7.50%. The Rs.2,000 Cr QIP cut D/E to 0.66x, but H1 operating cash flow was negative Rs.514.64 Cr on a Rs.766 Cr inventory build. FY27 mid-teens revenue guidance is on track; the open H2 questions are aluminium margin recovery and a possible capex envelope revision.
Key Investment Insights
Key Positives
- Consolidated revenue grew 47.1% YoY to Rs.2,945.20 Cr and 21.1% QoQ; H1 revenue Rs.5,376.78 Cr (+42.0% YoY)
- Powertrain EBIT margin expanded ~340 bps YoY to 18.04% with EBIT up 71.0% YoY
- Industrial & Engineering EBIT margin rose to 7.62% from 1.45% a year ago, with revenue +15.1% QoQ, sustaining the Q1 recovery
- Standalone revenue +55.0% YoY and standalone PAT +122.8% YoY with 15.03% standalone EBITDA margin
- QIP of Rs.2,000 Cr (net Rs.1,971.01 Cr) fully deployed toward debt repayment; D/E improved from 1.02x to 0.66x; net debt/EBITDA 2.01x on annualized H1 EBITDA
- Finance cost fell 6.8% QoQ to Rs.80.30 Cr and is only +4.3% YoY despite much higher revenue
- FY27 mid-teens revenue growth guidance is arithmetically secure: H2 needs only −8.9% YoY for +15% FY growth
Risk Factors
- EBITDA margin compressed 178 bps YoY and 249 bps QoQ to 13.32%; Aluminium segment EBIT margin fell to 7.50% from 10.13% in Q1 and 11.75% a year ago
- Cost of sales grew 60.7% YoY vs revenue growth of 47.1%, reflecting aluminium pass-through lag
- H1 operating cash flow was negative Rs.514.64 Cr; free cash flow −Rs.1,606.08 Cr, funded by the QIP rather than operations
- Inventories rose Rs.766 Cr and trade receivables Rs.422 Cr since March 2026 amid the aluminium ramp
- Aluminium Products EBIT fell 3.6% YoY despite 51.1% revenue growth
- Q2 other income of Rs.19.73 Cr (vs Rs.9.59 Cr year-ago) contains grant income and asset-sale gains of undisclosed quarterly quantum, flattering PAT growth