Craftsman Automation Ltd (NSE: CRAFTSMAN) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Srinivasan Ravi — Chairman and Managing Director
Analysts:
Mumuksh Mandlesha — Analyst
Mukesh Saraf — Analyst
Abhishek Jain — Analyst
Nikhil Rao — Analyst
Ajox Frederick H — Analyst
Vignesh SBK — Analyst
Himanshu Singh — Analyst
Presentation:
operator
Ladies and gentlemen, thank you for your patience. The conference of Craftsman’s Automation Ltd. Will begin shortly. Please stay connected and do not disconnect. Ladies and gentlemen, thank you for your patience. The conference of Craftsman’s Automation Ltd. Will begin shortly. Please stay connected and do not disconnect. Thank you. Ladies and gentlemen, good day and welcome to the earnings conference call hosted by Craftsman Automation limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the opening remarks are concluded. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your Touchstone phone.
I now hand the conference over to Mr. Srinivasan Ravi, chairman and managing director of Craftsman Automation Limited. Thank you. And over to you, Mr. Ravi.
Srinivasan Ravi — Chairman and Managing Director
Thank you. Good afternoon everybody. Thanks for joining the earnings call. The presentation has been updated in the exchanges so I hope we had time to go through that. So we are ready for the Q and A. Please order us in the queue. I think we can start the Q and A.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, you may note that some of the statements which may be made by the management team during this earnings conference call may contain certain forward looking information which are not guarantees of future performance and are subject to a number of risks and uncertainties.
We encourage you to refer to the disclaimer in the investor presentation of the company. Further, the management will not be addressing any customer specific queries owing to confidential obligations. We kindly request that you avoid mentioning any customer names in your questions. Ladies and gentlemen, we further request all participants to ask maximum of two questions at a time to allow the other participants to ask their questions. We take the first question from the line of Mumukesh among Leisha from Anandrati Institutional Equities. Please go ahead. Yeah.
Mumuksh Mandlesha
Thank you sir for the opportunity. So, on the aluminum side, aluminum standard margin. Sir, this quarter there’s a dip sequentially Q and Q. I just want to understand what could be the reasons for the decline. Is it some aluminum higher cost impact? And also sir, how do you see the aluminum standard margins over period of times?
Srinivasan Ravi
For the annualized basis, I think the aluminium will be moderating at higher level Q3 I think there is a startup of a new plant in Sholagari. We have incurred operational losses in the first quarter to prove out all the parts totally. So as a consolidated standalone it had affected the standalone because it is quite also significant plant. So we have started production now and I think production will ramp up in the by Q2 to a reasonable level. I think it will be improving from Q4 onwards continuously. So I don’t see any big change in the aluminium business margins going forward.
Optically. Yes, the commodity prices have been quite violent in the upward surge and it is quite significant in aluminium and it is continue to remain that way. So our margin will be on the gross margin or value addition. I would say so optically your margin may come down but it will be quite intact as far as the margin is concerned. The second point will be that the for the secondary aluminium there is some volatility on the imports because of the sudden surge of the dollar or the rupee depreciation. I would say all this has played out but we have a pass through with the customer.
Some are immediate, some are taking a month or two. So there isn’t affect in the long term but in the short term. Yes, there has been minor corrections there. Yes, thank you.
Mumuksh Mandlesha
Got it sir. Sorry sir. On the along with side how we are seeing the utilization level for the 5.8 million capacity and also want to check have the allowable margins move to a normal range of something like high single digit margin or still the it’s ramping up in terms of margins so.
Srinivasan Ravi
We are not even touched 50% of the installed capacity. I would say because of the high variety of parts which are under is all subject to BS approval also and the model developments and also customer validation. So the second thing is the because of the steep ramp up and also addition of new plant we are not in the double digit margin yet or even high single digit we are lower than that. But with new plant becomes optimal. I think by Q3 we should be reaching that level. Q3 of next year. I mean.
Mumuksh Mandlesha
And next year Q3 we should also be at a good 60, 70% plus utilization levels for the plan, right?
Srinivasan Ravi
Yes, correct.
operator
I am sorry to interrupt you. Could you please join Bhagtiki for follow up questions? Thank you.
operator
Thank you. We take the next question from the line of Mukesh Saraf from Avendis Park. Please go ahead.
Mukesh Saraf
Yes, good evening and thank you for the opportunity. Firstly on the powertrain segment could you kind of give us some sense on the fact that commercial vehicle segments looking better now. The outlook seems more positive and so does tractors. So how do we see this segment fair for us? We’ve seen numbers around this 450crore now quarterly run date. How can this kind of ramp up further?
Srinivasan Ravi
The last most couple of years commercial vehicle was quite muted and even tractor was muted. Now tractor is doing very well in this financial year and commercial vehicle is showing some green shoots of some marginal growth. The more interesting portion will come in the coming years when commercial vehicle moves to the higher engine capacities and gearbox capacities which we expect the norm globally of heavy duty means higher horsepower, 400 plus horsepower plus also on 2,800 Newton meter. But we are seeing a little of seeding in the market by some of the OEMs in India and results have been quite positive for the they’re only battling with the delta cost whether the productivity and fuel efficiency are offsetting the initial investment.
So this will move just like any other product moves up the for the higher capability which is more productive for the fleet owners this will happen. That will be the more interesting. So absolute numbers growing will be growing at single digit. Yes. At the same time the growth in tonnage also will be at single digit. But I think the ability to turn around the fleet and the per vehicle cost, I think that is set to move up as we move forward.
Mukesh Saraf
Right, right. So we should kind of hence see that benefit for us flowing through.
Srinivasan Ravi
Yes. And the silver lining as far as Craftsman is concerned is this means new product development and at least we can really do the costing from scratch at the current capex. The CAPEX is also very high related to any infrastructure and also import of machinery because of the exchange rates. And we have the new labor code which is coming in very soon. That also will we need more automation. Craftsman has been preparing very well for the last three years on manpower productivity by investment into automation and better equipment or I would say more productive equipment in line with the international level of operations.
So the international competitors. So that in that sense I think new products call for also high reliability from the suppliers and high capability from the suppliers also. So that will help us to product price the product. Right. And the end product of the OEM which goes to the market, the product is so highly priced because of the technology is packed in and also the productive nature it will not impact them. But I think, I’m not saying there’s a price reset but I think reasonable pricing to the legacy prices.
Mukesh Saraf
Got it, got it. And secondly if you give some.
Srinivasan Ravi
We are benefiting not only from the volume growth but I think the Horsepower, average horsepower is increased.
Mukesh Saraf
Yeah. Right, understood, sir. And on Sunbeam if you could kind of just take us through, I mean, where are we in that journey towards double digit margins now that we’ve been running it now for a few quarters. So you know, do you, do you kind of see that it’s going to happen say the next 2/4, 3/4? How do you see that?
Srinivasan Ravi
Three headlines. One is the heavy weightlifting of Sunbeam is over that we crossed the most critical point of 50% and now it is a journey which will continue to improve. So we will be seeing margins from Q2 of next year improving. We will end the year for 10% sort of EBITDA level from the current year of around 7% totally. So the exit run rate will be much higher. That is the Q4 will be higher than the 10% is what we see. And we are not still taken any new business which we will be starting in the coming quarters.
You know, even on the two wheeler side there are premium vehicles coming up. There is a shift towards outsourcing of machining activity which the OEMs are doing in house. And we are strategically placed in many geographic locations for the business. So yeah, for Sunbeam especially we are also having a plant in Gujarat, Ludhiana and we can supply to Uttarakhand the plant at. Yes, and also in the south. We are not invested for Sunbeam but it’s possible to look at similar parts and maybe so invest in the future. But I would say that those set of family parts craftsman is doing as well as Sunbeam is doing for two wheeler.
Sunbeam has also got increased potential for the exports going forward. While we wait for the total restructuring of Sunbeam to happen thoroughly, we have more or less integrated the three teams on the working side of it. We have participated in the Eurogoose exhibition just two weeks ago in Nuremberg where all these key aluminium exhibition for aluminum suppliers and all three teams participated together. We have exhibited the projects together. See a good response. The traction of being at least getting to a medium sized aluminium company in the coming two years as a group will help Sunbeam to leverage that.
Mukesh Saraf
Okay, got it, got it. Understood. Great. So thank you so much. I’ll get back.
operator
Thank you. We take the next question from the line of Abhishek Jain from Alpha Accurate Advisors Private Limited. Please go ahead.
Abhishek Jain
Thanks for opportunity and congratulations for a strong set of numbers. Sir, in industrial and engine segment we have seen a very sharp jump in EBIT margin. So just wanted to understand is it sustainable and are we looking some improvement on the Business and on the top line and the margin, both sides.
Srinivasan Ravi
Yes, it is sustainable. And with the operating leverage which we are now started to generate, we will see margin expansion in the next financial year. And the demand for these products is increasing in India. And we are the second largest player in the country as far as the static racking. And we are one among the two largest Indian players, I would say on the automated storage. And both are gaining traction. The second important point is since the market is also growing and there has been consolidation of the supplier base, it is a very clear segregation which has happened from the top five players.
And the other players they have become regional players. And also on the top five players, I think the number one and number two, where we are number two and among the other three there is also clear gaps which is there just like in the passenger vehicle segment. This means the larger projects execution mostly lies on three of the suppliers. So that way I think there’s no need to undercut each other on this matter. And we feel that we have made enough traction and also proved the product in the market. So we need not also go on cost cutting, sorry, sales price cutting strategy to win orders.
So the optimum users of the plant will come in in the next 2, 3/4 where we will be able to see margin expansion due to better operating leverage and also better purchasing power from the steel.
Abhishek Jain
Okay, sir, got sir, my next question on the operating margin side, from last two quarters we have seen that operating margin is hovering between around 15 to 15.3%. So just wanted to understand what would be the margin level in quarter four on F27? As you said that this quarter margin also impacted because of that addition of the new plants and that impacted to some extent the aluminium margin. So if we take the FY27 number, what kind of the real. What kind of. What kind of the margin expansion we can build in our model?
Srinivasan Ravi
The model of percentage of revenue as the margin I think doesn’t hold good for many reasons. For example, aluminium exports from China has been dropped by 8%. So aluminum prices have jumped by around 16% from 2800 to around $3050. Something like this. So I mean highest level since April 22nd, which was the last peak. So when the top line only increases with the same value addition, not margin, but value addition, absolute value artificially looks like the margin reduces. So we have to look at it in relation with the commodity prices. So I would kindly request you to look at the gross margin and the margin versus the EBITDA margins or EBIT margins.
Versus the gross margins that will be the right figure because aluminium again further increases artificially. It looks like our margins have come down.
Abhishek Jain
But in the third quarter if I see that top line number of this aluminium business that was quarter on quarter flat. Despite that we have seen around 200bps margin contraction. So if you can throw some light over there that what were the key reasons for that 200bps of margin contraction on EBIC level and how these numbers will start to improve.
Srinivasan Ravi
See the revenue. What you see on the aluminium is the of the. Some of the increased aluminium prices. So you can say that the top line has been flat. It may be reduced for us as far as our contribution goes totally because it may be attributed the top line being flat or growing or being stable maybe because of the increased aluminium prices. So you cannot just come and look at the top line and look at it. I said only one time event about this new plant at Shulagiri for the alloy wheel which has impacted our margins.
Yes, that is will be there for a quarter or two then it will go away just like we had in the past about when we started the Bhiwadi plant if you remember. But otherwise the top line are not strictly comparable between even Q2 and Q3 because aluminium prices are different.
Abhishek Jain
Thank you sir. That’s also my time.
Srinivasan Ravi
Thank you.
operator
Thank you. We take the next question from the line of Nikhil Rao from I thought pms. Please go ahead.
Nikhil Rao
Yeah, thanks for the opportunity. So I have a question on the order book for stationary engines. Can you provide the split for the 100 million between prime power source and backup power source?
Srinivasan Ravi
So our customers do not tell us whether it’s for prime power or backup power. So we have no. These are fungible. At least the product what we make is fungible. They manufacture everything under one roof. So the second point is the order book. I think it is we are inching towards an annual level of around 60 million now dollars. That also for FY29 and now the balance 30, 40 million dollars also will get tied up in the next year or so. So we will be on track with the 100 million dollar revenue for FY29. FY30.
FY29 possibly if the testing and taxation the demand for the products is quite high and the customer support on the product order books as well as on the product development is quite significantly high. We will be touching a peak requirement in the market by 2030. All the OEMs are geared up towards that. So we are in time for this to catch this upward curve.
Nikhil Rao
Okay. And from the Stromberg acquisition, do you see any demand coming in beyond data centers like from other industries? And also what kind of steady state margins are you expecting from this business?
Srinivasan Ravi
See, energy per se has been growing not significantly in the past, but this data centers or AI has driven the energy to be suddenly spiked, I would say. But even after spike is over and even at larger base we still see energy will demands will be keep growing and backup requirements will keep growing. So. But it will not be as high as this. What is happening. So once we are into this elite league of this supply of these critical parts, I think there is a lot of validation required to onboard a supplier. We are through with the first phase.
Second phase is on now. So we will be starting to supply in a year. A year and half the first invoicing will start. So that is the most important point in a milestone. So that we will continue to leverage this relationship with our customers for future products. India per se is also well poised for this, taking advantage of this technological growth. Because there is not much of capacity in Europe nor in North America. Since Craftsman also owns a foundry for these large Craftsman Fronbergs which is near. It is in Hamburg, which is near Nuremberg. We have an insight into whatever capacities are available in Europe also.
Totally. And what is really happening to those capacities. So we are working hand in hand with the customers to see we align with their future requirements on volume.
Nikhil Rao
And one more question. What are the current debt levels of the company both short and long term? Given that OEMs finished 2025 with like near optimal inventory days, has that been like a bullwhip effect on your working capital needs because of the recent surge in demand because of the GST reduction? No.
Srinivasan Ravi
On the powertrain, I think there is no increased requirement of working capital per se. In aluminium, I think the delta price of the price increase will have that marginal 10% or 15% increase in the working capital requirement. So the question is net debt to. I would rather look at debt to EBITDA. Debt to EBITDA consolidated level, we are at 2.55. Okay. On a nine month figure which is annualized.
Nikhil Rao
Okay. Thank you. That’s all for my time.
Srinivasan Ravi
Thank you.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. We take the next question from the line of Edge of Frederick from Sundaram Mutual Fund. Please go ahead.
Ajox Frederick H
Hi sir. Thanks for the opportunity. Sir. In aluminium, are there products where we can benefit out of this aluminum price increase, meaning it is not on per tonnage basis? And on more product level pricing we.
Srinivasan Ravi
Never have ever quoted for per tonnage basis at all. Aluminium is a calculated material cost and that is it. And that is anybody can calculate it, not only the customer. So it is an very clear engineered number which nobody can dispute on the weight of the part nor on the cost of the material cost of the material. Of course there can be some dispute on plus minus 3% on market prices. That is it. So beyond that whatever is the gross mean value addition, what we do on the casting side and the post casting process can be painting, can be some heat treatment and also can be also the machining side.
So we are an engineer company where we do lot of machining per se as craftsman standalone. But Sunbeam and DRXIN are more on the casting on the side, Sunbeam on the exports. Yes, it is fully finished product. So we never have ever quoted for per turn basis on matter it is always component to component, this component, this price.
Ajox Frederick H
Okay, so I mean despite coding at those levels, you’re saying the spread is what we computers value at. So always when prices increase there will be a optical reduction in margins. So that that will always happen.
Srinivasan Ravi
Yes, correct. See, suppose a tailor is getting thousand rupees for stitching.
Ajox Frederick H
Yeah.
Srinivasan Ravi
And the government is 2000. The margin is on says has got rupees margin. So the material cost goes up. We have no it is a pass through. So it only optically increase the top line revenue.
Ajox Frederick H
Yeah, got it. So sir, secondly, on this euro fda can there be better opportunities than earlier unused charged in Kotavadi from Europe?
Srinivasan Ravi
No, I think the Kotavadi project is based on a very special product where there’s a unique once in a lifetime sort of requirement coming up for the OEMs who are manufacturing those products which are hardly less than 10 companies all over the world. So this is driving that they are going to lose their customer base if they don’t ramp up on that matter. So everybody is in a race to create capacities. Nobody is worried about this FTA per se. I think I mentioned in the previous earnings call the engine or the generator generator costs anywhere between 1 billion, sorry 1 million dollar to say 1.5 million dollar per generator.
Whereas our product may be around 20, 30 thousand dollars depending on the configuration and size of the engine, things like that. So we are not any significant game changer as far as their bill of material or the cost goes in. So it more is driven by the capability of the supplier, in this case craftsman. And also the reliability of quality is extremely important for the customer to take a Decision this was normally made in house. So the trust to give the orders outside to a supplier itself is a big, big step for these OEMs. If you ask for the other, not the bottom of the pyramid, at least the middle of the pyramid products where we are somewhat present a little.
But on the top of the pyramid products, this is not the criteria. FTA is not the criteria but middle of the pyramid products. There is an earlier it was we need to be 30% cheaper than what they develop in Europe. Now the Europe cost have gone up and now they’re feeling the pinch. Now they’re looking at 20%. We should be cheaper than Europe to get the order. We don’t really engage on the sort of businesses but with this FTA coming in, I think the gap will be further reduced totally. So the. And the trust on India supplier base has to improve because of infrastructure for shipping, logistics, reliability of quality and delivery.
Once it improves, we can come at even at 10% leverage we have on the pricing. We have lesser pricing than the European counterparts. We can easily win the order. But on aluminium the other things are happening now I’m switching over to aluminum. Sorry about that, but I. There is a lot of distress in the aluminium supplier community base, especially in the auto ancillary both in North America as well as in Europe. They all invested heavily for Europe and many of them are getting insolvent or they do not have the ability to invest further. So when the swing back is happening to hybrid and ice in a bigger way, these companies are not able to adopt at all and the products have to be outsourced to other regions.
So we are still competing with our Asian partners and other regions also. So I think between we are not really competing now with the European supplier base or the American supplier base on the products what we manufacture.
Ajox Frederick H
Very clear, sir. Thanks. Thanks for that.
operator
Thank you. We take the next question from the line of Mumukesh Amandla Institutional Equities. Please go ahead. Mumukesh, please unmute your line and proceed with your question.
Mumuksh Mandlesha
Yeah, sorry. Thanks for the opportunity again sir. On the capex side, what was the capex for the nine month and what is expected for the full year? Sir? And can you again indicate the debt level or what is the debt gross and net currently?
Srinivasan Ravi
Sir, I think this can be taken offline on this subject. Various subsidies also we have to as I mentioned consultant net debt EBITDA, you know the EBITDA levels it is 2.55 as of now and the today the return of capital employed is pre tax is around 16% totally. ROI is around 12% annualized. So the we look at it now there is big upsurge in orders as we speak also. So we are looking at standalone Capex for Craftsman around close to 1,000 crore this year because we have added quite significant revenue. If you recall our IPO value in the turnover was around say 1300,400 range.
And now this year alone we added our we are adding around 1000 crore to the top line overall and we are seeing that this growth is going to continue in the coming quarters also in the coming years. So we are incurring CAPEX at that level. So I would not like to comment on closing debt or this but I think we have seen the higher level of net to debt EBITDA at 2.55. This will keep improving.
Mumuksh Mandlesha
Got it sir. And sir, finally sir on this recently Sunbeam have sold his aluminum twisting asset to Sriram Twisting. Just want to understand, I mean what kind of business was that?
Srinivasan Ravi
Sir, it was generating around 30 crore revenue approximately with two customers there both on the tubular side and the NCR region. Totally. You know these customers and historically I think earlier it was slightly higher number but the products have migrated and moved during the Sunbeam’s troubled period and not developed the new products. So it doesn’t make any material change to this 30 crore revenue with the variety of products. And we are not a key market player also Sunbeam there. So we are simplifying the business model of Sunbeam to its core competencies overall and other strategies.
In fact not only that particular business and number of customers also we have or on the exit mode we have given three months, six months notice for that. These customers I think numbering around 10 contribute to 5% of our revenue. So this means that we will become more and more efficient as we move on. Now as we speak I think 97 or 95% of the revenue is coming from four, five customer groups I would say in total. So we want to focus on that, stabilize that and then add more customers which are sizable value here after adding a customer on value I think at threshold level, I think the initial orders itself we are looking at $10 million.
We are going all the way to $30 million even for a smaller company like Sunbeam because of the new costs of I would say labor, the infrastructure, the CapEx, the equipment cost has gone more and the demands from the customer also are quite high because of the new requirement of quality and things like that. Also as we speak the increased requirements for all sort of tax and other compliances software, all these things are also going up. So we cannot really handle retail business. This is why we are rationalizing Sunbeam’s business.
Mumuksh Mandlesha
Got it sir, thank you so much for the opportunity.
operator
Thank you. We take the next question from the line of Vignesh SBK from KCMA Wealth. Please go ahead.
Vignesh SBK
Hi sir. Am I audible?
Srinivasan Ravi
Yes, please.
Vignesh SBK
Yeah, thank you. I just want to know how do we see the revenues across the segments growing in the next couple of years? Do we see like industrial engineering like ramping up? What’s your view on.
Srinivasan Ravi
Yeah, industrial engineering, I think high single digit or low double digit will be there on powertrain also we see the similar number on aluminum products will be in the high teens.
Vignesh SBK
Okay, and how do you see like from ICE to electric vehicle shift and the benefiting or the usage of aluminum products more towards the ev? Is that happening or.
Srinivasan Ravi
Can you please repeat the question?
Vignesh SBK
The demand for the aluminum products, is it increasing as we slowly move to the EV side.
Srinivasan Ravi
Because of lightweighting two, two different ways. We’ll first I will answer it for ICE, which is applicable and then we will talk about hybrid ICE and then the ev. All the three segments will benefit from light weighting very clearly because it means lesser carbon footprint, lesser cost of the vehicle in engine size and better even the passenger car segment. We might have noticed slowly but surely that now 1.5 litre is becoming predominant even though the 1.5 liter of the current passenger cars are pumping out more power than the 2 litres of the gasoline earlier. So now earlier the 1.5 litre power was being used for 1.2 litre.
Also the engines have become more powerful and more smaller. So even in spite of all that, I think the engine capacity is moving in India from 1.2 to 1.5 liter. So this means that the other amenities or other features which the customers want, they will need some sort of engine power or an hybrid to supplement the activity. So all this, all the CAFE norms will drive them drive the OEMs to have lesser emissions in total to have meet the CAFE norms. So for that light weighting is the best way in? Yes, on EV will become more predominant because the more lighter the vehicle, the same battery will give a higher range.
Or we can reduce the size of the battery to give the same range. That means the cost of the battery in relation decrease in cost of the battery in relation with the increased content of aluminium. It is quite significant advantages for the OEM to move towards aluminium. On the ICE and hybrid the challenges are slightly different. The new platforms have to take the they have to bring out the new designs which the western world has already adopted in the last 10 years. And only then the aluminium content will increase. But as OEMs build new plants, it is only then possible for them to make this big change.
Always they say platform when we have to develop a new platform because existing platform will not meet the safety norms or will not meet the new requirements which have come up. So when they invest for a new platform which is much more than the powertrain investment, they build in features which can take in more aluminium. I would say so that is the time aluminum content will dramatically increase. We have got a long way to go for the increase of aluminum content in the passenger vehicle when compared to the western world. So it is happening but it’s not happening at the.
Vignesh SBK
Okay sir, thanks for the detail explanation. Thank you.
operator
Thank you. We take the next question from the line of Abhishek Jain from Alpha Accurate Advisors Private Limited. Please go ahead sir.
Abhishek Jain
My next question is on date side. So what’s your plan to reduce your date? As you were earlier indicated that you will sell one of your land and you will start to reduce date in FY27. We just wanted to understand how much debt reduction will happen in FY27 onwards. And what is your target for the medium term.
Srinivasan Ravi
See, we already stalled anything. Debt below debt to EBITDA below 2 is compatible. And we like to stabilize at 1.5 when we have gone through this big growth cycle. So as we speak it is 2.5 in spite of the land not getting sold. Land has become very hot property I would say in that region. And while we are waiting for the best price, we have engaged with multinational companies who are in the business of selling this land. Various advertisements have come in, offers have come in. So we are evaluating those offers for the best possible price.
We are carrying around 350 crores worth value in the books which was at the last year when we had done the evaluation. So we are seeing what best we can do for shareholders. So that will surely reduce the debt. But we are not in such a hurry that we have to sell the land at a lower price to reduce the debt.
Abhishek Jain
You mentioned that your debt to EBITDA reduction to be around 1.5 from the 2.5 now. So how much time it will take?
Srinivasan Ravi
Sir, I think I would need to be very honest. We grow at 5%. It will take only two years to get to debt to EBITDA. 1%. One is to one and another two years. We grow at 5%. The debt will be Gone totally, there will be no new customers. So we are balancing the tact on the matter. So at a steady state, at a lower growth at around 18% I think we can have a debt to ebitda anywhere between 1 to 1.5 totally. So there will be. Today we have grown the business from 1500 to 7000 crore.
The very fact that India and our Asian neighbor, we have not kept paces, all our customers are disappointed that we don’t have the capacity nor the infrastructure to handle those big orders totally. So for that I think without building bridges, I think the infrastructure will not grow in the country nor we invest. For we cannot have the multinational customers to place single orders of $50,100,000,000 with us unless we have the capability to deliver that. So with a smaller base, yes, it looks like as if the Capex is high. But I think we are looking at even in the aluminum space competitors who are having $8 billion only in the aluminium revenue.
And on the top 10 aluminum players are between 3 billion to 8 billion. And you know that we have stated fact is we are less than half a billion dollar in aluminium revenue. So unless we scale up capacity we cannot even bid for the orders. On one side we want to broad base the customer, we want export, we want to be one among the players who are capable of going to the next 10, 15 year cycle of this sort of not only growth phase, I would say sustainability. So I think we are doing capex to sustain the company for with getting new orders at the new technologies.
Abhishek Jain
In a power team business you are also adding capacity. So just wanted to understand when it will be completed and how much incremental revenue would be generated on this capacity.
Srinivasan Ravi
I hope we’ll continue to invest for the powertrain for the first next five to 10 years. And this was a stated fact that we bet on ICE rather than on EV and now we see that it is paying off. So there is a lot of consolidation happening within India as well as the rest of the world in the number of supplier base because again of the technological change and the new demands on the emission norms. I would say so we are becoming getting more inquiries as we speak. So as long that demand keeps going, we will continue to expand and invest in capacities.
Abhishek Jain
And what would be the near term capacity additions in the powertrain business, how much that would be?
Srinivasan Ravi
I think 10% capacity is 5 to 10% is what we are looking at in the next 12 months starting from even this January. Yes.
Abhishek Jain
Thank you.
operator
Thank you. We take the next question from the line of Nikhil Rao from I thought PMS. Please go ahead.
Nikhil Rao
Yeah, thanks for the opportunity. So Dr. Actions EBITDA margins are at 90% I think currently. So just wanted to know if this is the peak or in the coming year and how can we achieve this?
Srinivasan Ravi
See, we are putting up one more plant for drxn. We have done the disclosures in the stock exchange. You may be aware that we have received some orders. And it’s quite significant this plant investments and capacities as we move on. So as we move on when the new plant comes into operation 2/4 we will have a hit on the margins. Because there will be pre operative cost which is there and suboptimum utilization of the plant. But as you move forward again it will normalize. And when that plant comes in at full operating capacity in the coming three, four years we will see that margin expansion will happen.
Because the older projects may come down again. Margin expansion. I put a caveat here or I put a disclaimer here which is a very strong disclaimer. Our margins are related to only gross margins compared on percentage of the gross margins or the after the material cost is removed from the top line. So otherwise it is not an apple to apple. Today aluminum is around 230 rupees. 240 rupees or 280 rupees. On the special alloys. No, no, sorry. On special alloys it is more than 280300 rupees. Tomorrow it may be 500 rupees. So you calculate margins on that.
It will be wrong. So I would rather say it will come on operating leverage. How well we control our costs and how well we are controlling our. I mean the product mix and our strategies going forward.
Nikhil Rao
Okay, thank you.
operator
Thank you. We take the next question from the line of Himanshu Singh from Baroda BNP Pariba Mutual fund. Please go ahead.
Himanshu Singh
Hi sir. Thank you for the opportunity, sir. So just wanted to understand what is our exposure by segment. Can you give any rough figure like cv Passenger vehicle, two wheelers only on the powertrain.
Srinivasan Ravi
You’re talking about as a whole as a company. I think where you’re talking about as a whole as a company. Just a minute. Mr. Vimal is opening the slide and Mr. Nashikar also is giving me some inputs. Just a minute. I will take the exact slide as a consolidated revenue per se across all the subsidiaries. Also passenger vehicle contributes to 34% revenue. Two wheeler is 24, commercial vehicle is 12, storage is 9% and balance is tractor is around 4%. And all other products higher than our 5A is around 5%. Other powertrain is 4%. So it is quite, quite a long tail.
Himanshu Singh
Okay, okay, sure, sir. And sir, next question is on the standalone aluminium power performance. So we have seen the revenues also coming down in margins on the bit level, falling sharply, almost like 500 basis point particular reason. How should we see this going ahead?
Srinivasan Ravi
See there are OEMs shut shop for the annual maintenance and post the festive season inventory correction. The product mix would have been changed. Maybe our revenue would have been flat because of aluminum prices or because of new products we brought into line which are suboptimum. And the existing product lines will not be utilized properly in December. So because customers do not invert material in the last two weeks of the month because the year of manufacture and a lot of other things which are there, we also have increased our capacities quite significantly and we carried those costs in December, which in December it was not fully utilized.
Not the exact word, but it is below optimum level for December usage. So this will continue as we ramp up. It will not be a stable level. There will be fluctuations from 1/4 to 1/4 depending on festive season, depending on how the customer performs, how that particular product segment is contributing. So we will have that. But as an annual basis I don’t see any big change.
Vignesh SBK
Okay. Okay, sir, thank you so much.
operator
Thank you ladies and gentlemen. As there are no further questions from the participant, I now have the conference over to Mr. Srinivasan Ravi for his closing comments.
Srinivasan Ravi
Thank you very much for joining and what I wish to tell our shareholders and investors. I would say thank you for sham and staying with us during this large change. What we have brought about the company from a standalone to with the subsidiaries and things like that. We have more interesting things to do to make the company more strategically aligned in line with the global requirements. So we are working on that. And thank you for your support.
operator
Thank you on behalf of Craftsman’s Automation Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.