Auto ancillary stock jumps 4% after reporting 723% YoY increase in net profits

Synopsis: A small cap auto components stock has witnessed its 9MFY26 revenue and profit surpass the total number of FY25. The company in context has a 3 year sales CAGR of 37 percent, with the stock giving a compounded return of 34 percent for the same period of time.

A small cap stock where the company is in the business of manufacturing several auto components saw its stock surge by more than 4.5 percent soon after the company announced its Q3FY26 result stating a 723 percent YoY profit growth.

With a market cap of Rs 18,560 Cr, Craftsman Automation Ltd saw its stock hit an intraday high of Rs 7928 which is 4.6 percent higher than the previous close of Rs 7579.  The company’s stock has given a compounded return of 34 percent in the last 3 years, while the 1 year number stands at 77 percent

The Q3FY26 Result

In the latest quarterly result Craftsman Automation Ltd has seen its revenue from operations increase by 38 percent YoY, from Rs 1,576 Cr in Q3FY25 to Rs 2,057 Cr in Q3FY26, while the QoQ increased by 2.3 percent from Rs 2,002 Cr. The net profits grew by 723 percent going from Rs 13 Cr in Q3FY25 to Rs 107 Cr in Q3FY26, while the QoQ increased by 17 percent from Q2FY26’s Rs 91 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 48 percent YoY, from Rs 3941 Cr in 9MFY25 to Rs 5842 Cr in 9MFY26. The net profits for the same period grew by 100 percent going from Rs 134 Cr to Rs 267 Cr.

The company has a 3 year sales CAGR of 37 percent, while the TTM is at 50 percent. The company’s 3 year profit CAGR is at 9 percent, while the TTM number is at 79 percent.

Segment Wise Revenue

The company generates majority of its revenue from the Aluminium Products segment which grew by 31 percent from Rs 916 Cr in Q3FY25 to Rs 1203 Cr in Q3FY26, while the Powertrain saw a 17 percent growth in revenue from Rs 457 Cr to Rs 536 Cr in the same period of time as above, and the biggest growth was seen in the revenue from Industrial &. Engineering as this grew from Rs 202 Cr to Rs 317 Cr which is a 57 percent growth.

The New Ludhiana Plant

Craftsman Automation Limited has approved the setting up of a new manufacturing plant in Ludhiana, Punjab, following a board meeting held on January 28, 2026. The proposed facility aims to enhance operational convenience and ensure timely and efficient service delivery to customers in the Ludhiana region. The new unit will support the company’s powertrain segment, where current capacity utilisation stands at around 75percent, with a proposed peak capacity addition of 5percent. The project is expected to be completed within 9–12 months, with an estimated investment of Rs 60 crore, largely funded through term loans, while maintaining minimal overall capital expenditure

Business Overview

Craftsman Automation Ltd is a diversified engineering and manufacturing company incorporated in 1986 and headquartered in Coimbatore, Tamil Nadu. The company operates across automotive powertrain and aluminium products, as well as industrial and engineering solutions, offering end-to-end capabilities from casting to precision machining and assembly. With multiple manufacturing plants across India and overseas subsidiaries, Craftsman Automation serves domestic and global OEMs across automotive, industrial, and infrastructure sectors.

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