Pune, May 27: Carraro India Limited, a leading Tier-I solution provider for axles, transmission systems, gears and related components, announced its audited financial results for the quarter and year ended March 31, 2026, delivering robust growth across domestic and export markets.
The company reported strong operational and profitability performance during FY26, supported by sustained demand in the agricultural vehicle segment, strong traction in construction equipment exports, and improved operational efficiencies.
FY26 Business Highlights
Strong Growth Across Key Segments
- Revenue from operations grew by 25% year-on-year.
- Domestic revenues increased by 19% YoY, while exports recorded a strong 37% YoY growth.
- EBITDA rose by 33% YoY, with EBITDA margin improving to 10.8% from 10.2% in FY25.
- Profit After Tax (PAT) increased by 48% YoY.
Construction Equipment Business Gains Momentum
Tele Boom Handler (TBH) Axles
- Continued ramp-up of the new range of TBH axles for a major international OEM.
- Strong order visibility and healthy traction expected to drive sustained growth in the coming quarters.
- New TBH axle projects with domestic and global customers remain on track.
Backhoe Loader (BHL) Drivelines
- Sales to construction equipment customers in India increased by approximately 9% during FY26, despite a 2% decline in the overall CE market.
- Export growth helped offset softness in domestic demand.
Engineering Services Business Expands
The company continued to strengthen its engineering services vertical with rising enquiries for higher horsepower and advanced technology configurations.
Key developments include:
- Signing of an engineering services agreement worth approximately INR 17.5 crore with Montra Electric for industrialisation and supply of e-transmissions.
- Receipt of prototype orders for field validation.
- Positive progress in discussions with additional customers.
- Engineering services revenue stood at approximately Rs. 10 crore in FY26.
Domestic Agriculture Business Sees Structural Shift
Carraro India benefited from the accelerated transition from 2WD to 4WD tractors following GST rationalisation, which narrowed the price gap between both categories.
- Strong growth recorded in the domestic 4WD axle market.
- Capacity expansion underway to support future demand growth.
- Higher HP transmission projects with customers in Turkey and India progressing well.
- SOP for the Turkey customer expected in FY27 and Indian customer by FY28.
Gears Business Update
- Secured a business nomination from a major OEM for bull gears valued at approximately Rs. 15 crore annually from FY28 onward.
- Engaged with two additional customer projects to strengthen the segment.
Export Business Continues Strong Trajectory
Exports remained a major growth driver for the company:
- Construction equipment exports witnessed strong momentum, particularly in TBH and BHL categories.
- Export market recovery for higher HP tractors expected to support transmission demand going forward.
Capacity Expansion and Capex
During FY26, the company deployed capex of approximately Rs. 417 million toward:
- New telescopic handler axle production,
- High-performance transmission programmes for agricultural applications,
- Incremental capacity expansion.
The Board also approved axle capacity expansion to 1,54,160 units to support future growth requirements.
Dividend Announcement
The Board of Directors recommended a final dividend of Rs. 6.75 per equity share for FY26, translating into an approximate payout ratio of 30%, subject to shareholder approval.
Management Commentary
Commenting on the results, Balaji Gopalan, Managing Director, said:
“FY26 was a strong and encouraging year for Carraro India, with the Company delivering healthy growth across both domestic and export markets, along with EBITDA profitability in line with our guidance. Revenue growth was supported by sustained demand in the agricultural vehicle segment and strong export traction led by construction equipment.”
He further added:
“The domestic agriculture business continued to benefit from the structural shift toward 4WD tractors, while exports remained a key growth driver supported by momentum in TBH and BHL exports. Our engineering services business also gained traction with increasing customer enquiries and strategic projects such as the agreement with Montra Electric.”
“With continued investments in capacity, technology and localisation, Carraro India enters its next phase of growth with a stronger business foundation, enhanced engineering capabilities and a healthy demand outlook across key end markets.”