Craftsman targets $100 million stationary-engine run rate by FY30

Craftsman Automation Limited targets a $100 million annualised revenue run rate from its stationary-engine programme by the third or fourth quarter of FY30. Management said the programme would be at 30% of that target by FY28 and 50% by FY29, citing demand for generators used for backup and mainstream power as artificial intelligence-related data-centre demand grows.

What is Craftsman's stationary-engine revenue target?

Craftsman's stated target is a $100 million annualised revenue run rate from stationary engines by Q3 or Q4 of FY30. Management described the programme as a long-term opportunity for which the bulk of capital expenditure, or CAPEX, had already been undertaken. In opening remarks on 29 October 2026, management said revenues from the stationary-engine project would start from FY29 and build into FY30, when the business would peak at about $100 million.

In a later response, management gave a more detailed but earlier ramp-up schedule, saying it expected the programme to reach 30% of the FY30 level by FY28 and 50% by FY29. The transcript does not reconcile the FY28 milestone with the earlier statement that revenues would start from FY29. Craftsman did not disclose current stationary-engine revenue, a monthly run rate, customer names, order-book value or expected programme margins.

How does data-centre demand support Craftsman's plan?

Management said artificial intelligence, or AI, would continue to support demand for backup-power and mainstream generators over the next five to seven years. Craftsman linked stationary-engine expansion to this generator requirement, including demand associated with data centres. This was management's market view rather than a disclosed sales forecast, customer commitment or data-centre revenue estimate.

Craftsman said on 29 October 2026 that it was receiving enquiries for the next level of capacity, mostly for products already being developed. Management said this product overlap could reduce the time needed to reach market because development work was already under way. It did not disclose the number of enquiries, their conversion prospects, the regions involved or the capacity that could be added.

When will Craftsman add a second stationary-engine phase?

Craftsman indicated that a second phase could follow once the first phase reaches its FY30 peak. Management said the next phase would be less capital intensive because foundry infrastructure and the basic machine shop were already in place. The sequence leaves the first programme as the immediate focus, while further capacity depends on enquiry and order momentum.

Management said future facilities would be more flexible so Craftsman could serve different customers as global market conditions change. The company wants customers to be able to develop products and increase production more quickly through those facilities. Craftsman did not provide a phase-two start date, revenue target, production-capacity figure or CAPEX amount, so the $100 million goal applies to the first disclosed ramp.

What investment supports Craftsman's stationary-engine expansion?

Craftsman said it had completed the bulk of CAPEX for the stationary-engine opportunity while also expanding powertrain, aluminium-casting and machining capacity. Management said on 29 October 2026 that some capacity was still being created, not all capacity had entered production and some pipelines were not yet full. It expected previous investment, product approvals and plants coming on stream to support growth over the next two to three quarters.

For the consolidated business, management said first-half FY27 CAPEX had been significant and projected Rs 500 crore to Rs 600 crore of CAPEX in Q3. It said Q4 CAPEX might be lower because longer-term projects would move into subsequent years in phases. Greenfield facilities across India in powertrain and aluminium, alongside land and base infrastructure, were intended to support expansion over the next three to five years, according to management.

What could affect Craftsman's stationary-engine ramp?

The disclosed execution issue is that some new plants were operating below optimum levels and would need another two quarters to become more profitable, according to management. Craftsman also said working capital had risen as it added lines and plants and carried pipeline inventory. Those comments concern the broader manufacturing build-out, but they show that capacity creation and revenue conversion may occur at different times.

Management also identified aluminium-price volatility and cost inflation in its wider operations. It said higher aluminium inventory, built during supply concerns, had affected recent results when prices dropped, while customer discussions on price corrections were continuing. Management expected a marginal aluminium effect in Q3 and none in Q4, but did not identify a direct effect on stationary engines. The call's forward-looking statement disclaimer said actual results could differ materially from projections.

Conclusion

Craftsman has set out a multi-year stationary-engine plan centred on a $100 million annualised run rate by Q3 or Q4 of FY30. Management's stated FY28 and FY29 milestones suggest an earlier ramp, while its opening comments placed revenue commencement in FY29; the transcript does not explain that difference. The programme is therefore presented as a future growth stream rather than a near-term contributor.

The next points to watch are whether enquiries result in added capacity, whether newer plants improve utilisation within the next two quarters, and whether Craftsman provides clarification on the FY28 milestone. Management has said a second phase could follow the FY30 peak and should require less CAPEX because core foundry and machine-shop infrastructure is already installed.