Carraro India Q1 FY27 Consolidated Results

Pune, Aug 07: Carraro India Limited, an independent Tier-I solution provider for axles, transmission systems, gears and other related components, has reported its unaudited financial results for the quarter ended 30th June 2026.

Financial Highlights:

Operational Highlights:

Other Key Business Highlights (Q1FY27)

• Tele-boom Handler (TBH): Construction Equipment:
• The ramp-up of the new range of TBH axles for a major international OEM continued during the period under review, with healthy traction and strong visibility for sustained growth, while export programmes progressed as planned.
• New Projects with a domestic customer (Global and Indian) for the TBH family of axles, are progressing well and remain on track, as the Company continues to expand its TBH business and strengthen its presence in the domestic market.
• Backhoe Loader (BHL) transmission & axles:
• Overall BHL sales by Indian OEMs, comprising domestic sales and exports, grew by ~14% year-on-year during the quarter.
• During the same period, Carraro’s sales of drivelines to Indian OEMs increased by ~18% year-on-year, outperforming the broader market.
• Engineering services business:
• Receiving several enquiries for higher HP and technology configurations.
• The INR 175 million e-transmission engineering project with Montra Electric is progressing well, with a prototype order received for field validation.
• Engineering services assignments worth ~INR 33 million were under discussion at quarter-end and were subsequently received (finalized and concluded on July 2026).
• Discussions with another customer are progressing positively, while efforts to secure additional engineering services business remain ongoing, supporting expected year-on-year revenue growth in the segment.
• Domestic AG 4WD Axle & Gears business update:
• The GST reduction has narrowed the price gap by bringing post-GST 4WD tractor prices close to pre-GST 2WD levels, accelerating the shift towards 4WD models. Consequently, domestic 4WD axle demand continues to grow as anticipated, with CIL ramping up capacity to support future demand.
• During Q1FY27, the gears business remained subdued. However, efforts are underway to strengthen the business, which is expected to support a gradual improvement over the coming quarters.
• In the gears business, secured a business nomination from a major OEM for bull gears, valued at approximately ~INR 150 million p.a. effective FY28. The company is also working with two new customers / projects

• Agri higher HP Transmission:
• Export market gradually recovering, which could positively impact transmission offtake for high HP tractors.
• Higher HP tractor transmission projects with a customer in Turkey, and customers in India are progressing well. Start of production for the Turkish customer commenced in Q1 FY27, while SOP for the Indian customer is expected by FY28.
• Export business Update: (Both direct & indirect):
• Export market conditions remained challenging during the quarter, as ongoing geopolitical uncertainty and uneven demand across key overseas markets weighed on overall export performance. However, resilient domestic demand continues to support the overall volume trajectory.
• Capex:
• In Q1 FY27, construction of the new paint-shop building commenced, while a side-drive sub-assembly line and a backlash machine were commissioned to enhance Portal axle capacity and increase differential-support capacity on the 4WD line.
• During FY26, CIL deployed INR 417 million towards new telescopic-handler axle production, high-performance agricultural transmissions, and capacity expansion.

Commenting on the results Dr. Balaji Gopalan, Managing Director, Carraro India Limited said,

Q1FY27 Performance Overview

“Carraro India reported a resilient start to the financial year. Q1 FY27 Revenue from operations increased by 10% year-on-year to INR 5,447 million, supported by sustained momentum in the domestic business. Domestic revenue grew by ~26% year-on-year, driven by robust demand for 4WD axles in the agricultural vehicle segment, despite uncertainty surrounding the monsoon outlook. Export revenue declined by ~14% year-on-year due to geopolitical disruptions and uneven demand across global markets.

Profitability improved in absolute terms, with EBITDA rising by ~6% and PAT by ~8% year-on-year. EBITDA Margins were affected by higher energy and raw-material costs arising from geopolitical disruption, along with labour availability constraints. However, disciplined cost management and execution efficiencies helped contain the impact and sustain earnings growth.

The domestic agriculture business continues to benefit from the GST reforms, accelerating the shift towards 4WD tractors, with demand for our axles growing in line with expectations. We are accordingly expanding capacity to support anticipated demand.

In the construction-equipment segment, the export programme for TBH axles continue to progress as planned. We are also expanding our domestic TBH presence through new projects with Indian OEMs and the Indian operations of global OEMs. Carraro’s BHL sales to Indian OEMs continued to outperform the broader market.

Our engineering-services business gained further momentum during the quarter. The Montra Electric project is progressing well, while assignments worth ~INR 33 million that were under discussion at quarter-end have since been received. These developments reflect growing customer confidence in our engineering capabilities and technology solutions. Discussions with another prospective customer are also progressing, supporting further growth in this business.

Our higher-HP transmission programmes reached an important milestone, with series production for a Turkish customer beginning in Q1 FY27. The programme for an Indian customer is advancing as scheduled, with start of production targeted by FY28.

The gears business remained subdued during the quarter. However, focused initiatives are underway to strengthen the portfolio and support a gradual recovery over the coming quarters.

We also made progress on our manufacturing and capacity-enhancement roadmap. Construction of the new paint-shop building commenced during the quarter, while a side-drive sub-assembly line and a backlash machine were commissioned to enhance Portal axle capacity and expand differential-support components used in 4WD axle production.

Global market conditions remain uncertain due to geopolitical developments and mixed demand trends. Nevertheless, strong domestic momentum, recovering supply chains, the ramp-up of new programmes and ongoing capacity additions position us well for the year ahead. We remain focused on delivering positive growth in FY27. Better cost absorption, improved operating efficiencies, higher utilisation levels and continued cost discipline are expected to support margin improvement as we work towards our medium-term revenue and profitability objectives.”