Craftsman’s margin slips QoQ after four quarters of expansion
Revenue growth remained strong YoY, but faster sequential expense growth narrowed the consolidated operating margin.
Filed 29 Jul 2026, 12:39 IST · Craftsman Automation Ltd (CRAFTSMAN)
Key takeaways
- Consolidated revenue grew +36.30% YoY and operating margin expanded 0.94 percentage points as expenses rose slower than revenue.
- Operating margin narrowed 0.31 percentage points QoQ because expenses grew +9.63% against revenue growth of +9.22%, ending four quarters of sequential expansion.
- Net profit rose +29.32% QoQ as the tax rate fell 7.61 percentage points, while other income contributed 11.79% of pre-tax profit.
Price around the results
YoY growth lifted operating margin
In consolidated Q1FY27, revenue grew +36.30% YoY to Rs 2,431.58 cr, while expenses rose +34.80%. The slower expense growth lifted operating margin by 0.94 percentage points, and operating profit increased +44.89% to Rs 383.87 cr. Net profit grew +116.31% to Rs 150.55 cr, helped by the improved operating result and a 0.62 percentage-point reduction in the tax rate.
Sequential margin pressure came with tax support
Revenue increased +9.22% QoQ, but expenses grew faster at +9.63%, narrowing operating margin by 0.31 percentage points. Net profit still rose +29.32% because the tax rate fell 7.61 percentage points, while interest was broadly flat at a -0.13% change. Other income accounted for 11.79% of pre-tax profit, making it a material contributor to reported earnings.
Margin now sits just above the sector median
The 15.79% operating margin was 0.10 percentage points above the 15.69% median for the 37 Consumer Discretionary peers that had reported the quarter. The multi-quarter trend had improved from 13.93% in Q4FY25 to 16.10% in Q4FY26, so the latest sequential decline interrupts a four-quarter run of margin expansion.
Prior-result reactions have been evenly split
There is no post-results price move to assess yet. Across the eight prior results, the stock rose after four and fell after four, with a median absolute move of 3.40%; the recorded moves ranged from -5.64% to +11.09%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,432 cr | ₹2,226 cr | +9.22% | +36.30% |
| Other income | ₹24 cr | ₹19 cr | +25.60% | — |
| Expenses | ₹2,048 cr | ₹1,868 cr | +9.63% | +34.80% |
| Operating profit | ₹384 cr | ₹359 cr | +7.07% | +44.89% |
| Operating margin (%) | 15.79% | 16.10% | — | — |
| Interest | ₹86 cr | ₹86 cr | -0.13% | +29.95% |
| Depreciation | ₹120 cr | ₹118 cr | +1.95% | +18.18% |
| Profit before tax | ₹201 cr | ₹173 cr | +16.17% | +114.51% |
| Tax | ₹50 cr | ₹57 cr | -10.86% | +109.33% |
| Net profit | ₹151 cr | ₹116 cr | +29.32% | +116.31% |
| EPS (₹) | ₹62.25 | ₹48.80 | +27.56% | +113.33% |
Operating margin of 15.79% compares with a Consumer Discretionary sector median of 15.69% across 37 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 15.79% after the 0.31 percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue after the +9.63% versus +9.22% QoQ gap.
- Whether the tax rate remains near 25.11% and other income stays below or above its 11.79% share of pre-tax profit.