Carraro India Ltd (NSE: CARRARO) Q1 2026 Earnings Call dated Aug. 06, 2025
Corporate Participants:
Unidentified Speaker
Balaji Gopalan — Managing Director
Davide Grossi — Chief Financial Officer
Analysts:
Unidentified Participant
Sonal Gupta — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the Carraro India Limited Q1FY26 earnings conference call. 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 presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 100 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Dr. Balaji Gopalan, Managing Director of Karao India Limited. Thank you. And over to you Balaji sir.
Balaji Gopalan — Managing Director
Yes, thank you very much. A very good morning to all of you and thank you for joining us today. For Kararu India Limited Quarter 1 FY26. Earning call, I am joined by Mr. Davide Grossi, our Full Time Director and CFO Mr. Manikar, Full Time Director and COO Mr. Ashok Rai, Director Sales and Marketing along with other members of our leadership team and our Investor Relations partner Strategic Growth Advisors. Let me start by giving you an overview of the quarter gone by. FY26 has begun on a very positive note. In Q1 our revenues from operations grew by 4% year on year largely driven. By volume growth across both domestic and export markets. On the domestic side we saw a 3% increase led by strong demand in. Our four wheel drive axle segment. Exports also grew 5% year on year, showing early signs of recovery after two relatively weak quarters. Even though indirect exports of agriculture drive lines continue to remain soft, overall volumes. Were supported by strong demand from domestic market. I am pleased to report that we. Maintained an ebitda margin of 11% during the quarter and this reflects our continued. Focus on cost efficiency and operational discipline. Let me touch upon some segmental insights and trends. Both the agricultural equipment and construction vehicle segments showed stable performance this quarter. In the construction equipment segment, we continued the export ramp up of our new tele boom handlers or TBH axles which we introduced in Q4 of FY25 for a major international OEM that’s progressing well and has helped drive export sales. On the domestic front, we have secured a new tele boom handler axle project which is expected to be completed by Q3 of financial year 26. In backhaul orders we witnessed a softening trend in domestic demands compared to last year.
However, this was partly set off by increased traction from a couple of Indian OEMs who are gaining market share in exports. The agriculture segment continued to benefit from increased adoption of four wheel drive axles. In fact, we hit a new milestone in May 2025 where nearly 4000 units of four wheel drive axles were produced, our highest ever in a single month. A key highlight for us was the successful completion of a prototype for our high transmissions for an export customer series Production of this high horsepower transmission is set to begin in Q2 of this year.
In addition, we have secured two new projects in the high horsepower category, one with an export OEM and another with a domestic tractor manufacturer. Both of these are for transmissions vehicles above 105 horsepower. 105 horsepower with production starting in FY2627 and FY2728 respectively. Coming to gears and spares business, this saw a marginal decline and we expect that part of the portfolio to remain stable with limited upside in the near term. On the engineering services front, we have seen growing demand especially for high horsepower and more tech enabled platforms. A significant development this quarter was the conclusion of a commercial agreement to design an electric tractor transmission.
The formal contract is being worked out and expected to be signed shortly. This opens up the possibility for Keral India to to eventually supply the electric transmission to all the markets, creating a new and consistent revenue stream from this segment. On the operational enhancement side we achieved several milestones. We successfully completed the pilot batch of CVT or what we call continuously variable transmission gearboxes which marks an important step towards potential commercialization. CVT transmissions basically are related to automatic gearboxes. We also commissioned a new 800mm pallet Mazak Machining center in June this year. This will significantly improve both throughput and flexibility in machining, supporting our ongoing capacity enhancement.
During the quarter we also secured new orders from major OEMs in both construction and agriculture segments, further strengthening our forward pipeline coming to CAPEX and investments during Q1 we deployed INR101 million in capital expenditure. This was mainly to support three areas. Number one new telescopic handlers, axle production, number two high performance new transmission range for agriculture applications and three grant incremental capacity for FY26 sales. This CapEx is aligned with our strategy to support the expected growth in FY26 and beyond. Customer trust and recognition our relationship with OEMs continue to strengthen. I want to highlight that despite short term weakness in some markets, we haven’t lost a single customer or contract.
That speaks to the trust our clients have in us. We also received several recognitions during the year. In April, Bull Machine awarded us the Best Supplier Award for Strategic Excellence which is a testament to our customer centric approach and consistent performance. Coming to FY26 outlook looking ahead for FY26. We are confident about delivering results as guided in our Q4 FY26 earnings call. We expect FY26 revenue growth in the range of 8% to 12% on margins. Our goals remain to move towards adding incremental 1% EBITDA that is 100bps every year for the next two to three years.
While quarterly margins may fluctuate due to product mix, we urge stakeholders to focus. On full year delivery. Our growth drivers for the year include strengthening domestic demand in both agriculture and construction sectors. Number 2 ramp up of teleboom handler axle volumes 3. Revenue from engineering services 4. Recovery in gears and spare parts and finally higher localization where we are targeting 86 to 88% localization over the next three years. In short, Carrado India is well positioned for sustained profitable growth. Our foundation is solid, our pipeline is strong and our focus is clear to deliver innovative value added solutions while growing in close alignment with our OEM partners. With that I now hand over the call to Mr.
David Grotsi, our CFO to walk you through the financials. Davide Grossi, please.
Davide Grossi — Chief Financial Officer
Thank you Balajin and good morning everyone. I will now take you very quickly to the highlights of the quarter and then of course so when we look at Q1 of 2026, our total income INR 4,999 Million, almost 500 crores with a growth of 5% year on year. Our income from operation grew by 4% year on year to INR 4,929 Million. This was driven by domestic volume growth, by a partial early recovery in export and by the progressive ramp up of the new turbomendal business. As already mentioned, our other income primarily doubled on back of increased export incentive for 42 million rupees and 19 million of one off effect for a revertal of all the provision that was previously made.
In the past years EBITDA came at INR 548 million almost 55 crores translating to an EBITDA margin of 11%. We also recorded the profit after tax for the quarter at 299,000,029 crores. In addition, we continue to maintain a strong balance sheet and this allow us to fund our operations, support our strategic investment and to remain agile in responding to opportunities in the market. Looking ahead, we remain optimistic. Our financial outlook for FY26 is supported by growth in high value product lines, increasing contribution from engineering services and continued gains from localization. That’s all for a moment and I’ll give it back to you.
Balaji Gopalan — Managing Director
Yes, thank you Davide. Now to summarize FY26 has started well and is aligned with our full year growth guidance. Strategic bets in teleboom handler axles, high horsepower transmissions and engineering services are beginning to yield results. We thank all our investors, partners and. Customers for your continued support. We deeply value your trust and are. Excited about what lies ahead. We now welcome your questions.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all participants if you wish to ask any questions you may press star and 1. We have our first question from line of Shriram, an individual investor.
Please go ahead.
Unidentified Participant
Thank you for the opportunity. So what is the contribution of 4wd to our numbers? And if you can give some color on the market size because in the last call I think you mentioned that you’ll be able to give the numbers. So if it’s possible, please do that.
Balaji Gopalan
Yeah, thank you for the question. I will request our sales director Ashok Rai to throw some light on the market and our four wheel drive journey.
Unidentified Speaker
As we indicated in the last call also that the market, the pie of the four wheel drive tractor in the domestic market is increasing. Last year in the financial year it was in the range of 20% to 22% of the market was in the four wheel drive segment. And the way the quarter has started in this financial year we are expecting that this should be around 23 to 25% of the market will move to the four wheel drive. Now as a Carraro we are maintaining the almost 60 to 65% market share in the non captive segment.
So both the captive and the non captive segments are growing and our volumes are also growing in the similar range. That means almost 8 to 10% volume. We are growing it. And when it comes to the revenue contribution we are talking about Almost Carrara, India’s 20, 25% of our turnover is now will be in the four wheel drive segment.
Unidentified Participant
So just one clarification. So when you say 25%, it’s 25% of overall numbers or 25% of domestic numbers.
Unidentified Speaker
It should be overall total number but. Domestic will be almost 35. 40% of our turnover will be coming from the four wheel drive. Because as you know we operate in the construction as well as the agricultural segment and agriculture and construction segment is 50, 50% of our total as a share of business between the agriculture and construction and domestic market. And within the agricultural out of that will be around. Total domestic would be around 35 to 40% of our turnover is coming from four wheel drive.
Unidentified Participant
Okay, that’s helpful sir. Just a follow up. So if I include the cap to and non captive what will be the market size? Currently.
Balaji Gopalan
The tractor domestic market last year was almost 950,000 tractors. So this year we are expecting that it should cross 1 million. So if 1 million tractor are crossing with the way the monsoon is going well. So I’m expecting that of course I don’t have. There is no formal number available. It is only the trend we are seeing it. It should be around 240,000 to 260,000 tractors should be converted into the four wheel drive which was almost seven, eight years ago was hardly 2% or 3% of the market.
Unidentified Participant
Okay, and as a value, can you give some ballpark value? Because it’s very, very difficult because we. Are talking about this market which is between 20 horsepower or 15 horsepower up to 7580 horsepower. Putting a value would be very, very unjustified and not a right way to portray it.
Balaji Gopalan
The numbers is there which is which. Talks about the number of tractors which are getting converted into the four wheel drive.
Unidentified Participant
Okay, thanks, I’ll join that. Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask any questions you may press Star and one. Anyone willing to ask a question, you may press Star and one. Now we have our next question from the line of Pranav Doshi from Aldeco Asset Management. Please go ahead.
Unidentified Participant
Yes, thank you for the opportunity. And so I have a couple of questions. First is that we’ve observed quite a bit of volatility in our gross margins for the last three quarters. So can we just like break down the specific cost and the effects of the product mix and pricing factors behind the volatility? And like more importantly, with our upcoming strategic SOPs as well as new product launches, how will they stabilize and potentially lift the gross margins over the next six to 12 months? So yeah, that is my first question.
Davide Grossi
Okay. On the gross margin, I would say volatility was probably seen in Q3 of last year. But if we enlarge a little bit the horizon, we see that we do not have a major volatility. We are talking about variation in the range of 1 to 2 points quarter by quarter. And this is actually quite, let’s say common in our business to consider that our gross Margin is really much the effect of the different mix that we see quarter by quarter. And we have seen also in the past that and it will keep happening also in the future.
Unidentified Participant
So. There is no specific reason that justifies this other than the variation of the mix of sales from quarter to quarter. Having said that, of course we are looking for a structural improvement of our gross margin that will happen and will be. You will be able to appreciate it when you look at the full year results. Okay.
Davide Grossi
And this would be the result of the increased level of localization that we are targeting, as we already mentioned. And in addition to that, the strategy of Terraro is of course to add products that will be gradually margin accretive for the company. So those are the two major, let’s say, ways in which we plan to structure gross margin over time.
Davide Grossi
Okay, so great. And next other question would be that let’s say if you can help us understand the strategic importance of Indian units within our wider group portfolio and like, what are the specific actions or frameworks that we put in place to ensure that any incremental business routed through India not only drives our top line but also sustains or possibly enhances the profitability of the Indian subsidiary?
Balaji Gopalan
Sorry, but your voice cracked in the beginning so we could not figure out the context and the question. Can you please repeat it, please?
Unidentified Participant
Yes sir, surely I’ll repeat my question. So my question was that I wanted to understand the strategic importance of the Indian unit within the wider group portfolio. And so what are the actions or the frameworks that are being put so that you know, whichever. The incremental business that is routed through the Indian subsidiary not only drives our top line but also enhances the profitability of the Indian subsidiary.
Balaji Gopalan
Yeah. Carraro India is one of the largest plants within Carraro Group in terms of the industrial footprint that we have. And it is a strategy driven by our group that we have created Karao India as a center of excellence for agriculture transmission. So any transmission product connected with agriculture, the possibilities are very, very high that it will be passed on to India. That is because we have the supplier network, we have done the vendor development, we have the infrastructure, we have the test benches. So the whole infrastructure, the industrial layout has been made favorable for agriculture transmissions within our group.
So there is a natural choice to. Send it to India. This is number one. Having said this, in the last two. And a half decades we have established ourselves as a reliable and credible manufacturing base within Kanaro Group. And we have lot of laurels to our credit to the extent that we have The Caterpillar Global Excellence Award which is given only to the top 1% suppliers of the Caterpillar global supplier network. So this is not even present in many of our other facilities. So these kind of recognitions from the customer because the customer also is now very, very proudly, I can say that they are opting for products to be rolled out from the India plant considering the infrastructure and competencies that we have.
So looking at the Carraro perspective, we are contributing close to about 20 to 25% of the global revenue. And we have become very, very important in the business strategy of Kararu Group. So there is no doubt about it. Secondly, we are already in receipt of IPs which very rarely you will find headquarters passing it on. And around 154 IPs for all products that are being sold in India has been passed on to Carraro India because. We have the technical competence in our. R and D center to manage all the design and the product lifecycle of those IT products. So this further strengthens the result that Carrara Group is focusing on India now. We are even looking at expanding our R and D and engineering services to make it a global competence center. And to that effect we have already. Shifted the PLM platform of product life. Cycle management under Windchill for the Carraro Group to be operated from Carraro Technologies in India. Now all these things are fillers and. Indications that India is the pivotal point. It is a point of focus where everything in future we will get an opportunity and we can ask for the business to come into India. So this is where the importance of the Indian operations is there with respect to the group. Have I answered your question or you want any specific clarification?
Unidentified Participant
Yes, you answered my question. So just one part on the royalty parts or royalties? I think given that the IPs have been transferred, they would be staying minimal, right?
Balaji Gopalan
They will be zero. We will only pay for the brand royalty that is in a decimal, so 0.3, 0.2, 0.4 it is in that range. But earlier the royalty that we were paying that has become zero.
Unidentified Participant
Okay, perfect. And just one question that let’s say for the FY26, we are guiding for 8 to 12% growth despite the weak, let’s say domestic growth and like even the export recovery has been at a nascent stage. So let’s say beyond FY26, what are the levers which you know, could realistically lift our growth into mid teens? And like how is our capacity and the CAPEX aligned to manage the incremental growth that we are seeing in the future.
Balaji Gopalan
Yeah, See we have a target which. We will call it the business journey. And in the business journey we are very clear in a very realistic way we are looking at touching 315 million euro by 2829, which translates to roughly 3300 crore to 3400 crore. This is the business we are having a clear visibility for. And as I have explained in the past, we are estimating not based on how the market is moving, that is one element in our projection, but we. Are driven more by projects that we are working on and prototypes that we. Are building for the future projects of our customers. Now that is the bellwether. If I am submitting a proto because we don’t make protos without proper orders from our customers. So it’s not a catalog kind of an item that we are developing products and waiting for customers. It is a co designing activity. And for that reason proto becomes very, very important indicator for our future revenue stream. So considering the protos and the projects that we are working on, realistically these numbers have been arrived at. To give you an example, I explained. To you that we are signing a contract for the electric tractor engineering services. For which the work has already started. It is already ongoing. And if you remember in the past we had even done their feasibility study and then we had said next year we will get the agreement for the final configuration and supply of transmission, which we have got it. So we are consistent in what we are saying. But the volumes of this electric transmission. Is not considered in my projection of 350. So we are very, very realistic in. The numbers that we project. What is there in my pocket is. What we are projecting. And to that reason 3300 is very clear, number one. Number two, we were looking at some capacity enhancement in this year itself. Probably towards end of this year we are very, very cautious. We put one foot in the water to ensure we are stable and we are not making any mistakes. So our there is a slight deferment, I would say, of the expansion which now we will be doing in a step by step way instead of going in for a major expansion in one shot and putting all our money in capex. So we are doing a very, very cautious, steady and reliable expansion of our activities so that we are able to. Absorb our fixed cost and have some benefit of economy of scale. Scale also if my top line is growing and my capex also is growing, my other fixed costs are growing, then. That’S not a real efficient way of doing business. So Carraro is very Conscious of these things, we are ensuring that every has a payback period. And we are ensuring our margins should improve as we are growing. And to that reason, we are looking at a 1% enhancement in EBITDA year on year. We have a clear visibility, we have a clear plan based on localization and cost efficiency measures in operations that will. Lead us for sure for the next. Two to three years. We don’t want to commit something beyond. It is very easy for me to say we will continue similar actions beyond also. But unless we are sure of delivering, Carraro does not believe in making an announcement. So. So that is the reason EBITDA plus 1% guaranteed from our side. We are looking at it as a target which we will achieve. And we have the motivation and the plan and strategy to do it. So 1% for the next two to. Three years is what we are optimistic and confident of achieving.
Unidentified Participant
Great, sir. So just one clarification here that.
operator
May I please request you to rejoin the queue?
Unidentified Participant
Sure, sir.
operator
Thank you. We have the next question from the line of Sonal Gupta from HSBC Mutual Fund. Please go ahead.
Sonal Gupta
Yeah, hi, good morning sir. And thanks for taking my question. So just on the, I mean the growth this quarter, right? Like this quarter domestic, if I look at domestic tractor production has grown about 10%. And so I’m just trying to understand in that context and like we’re saying that the share of four wheel drive is sort of going up as well. So I would have thought that, I mean like given that a strong tractor quarter should ideally be good for us. So if you could just sort of tell us a little more on how the seasonality works for you so that we can better understand on that side.
Balaji Gopalan
Yeah, sure. Ashok, would you like to.
Unidentified Speaker
See, as you know, as you rightly mentioned, that there is a seasonality of the tractor market. So right now we are entering into the peak season. Okay. So normally December, January, those are the period which is a lean period. And this quarter, because of the monsoon, good monsoon, and because of the positive environment around the rural economy, it’s pulling more tractors today. And we are expecting that this market is expected to touch at least 7% to 9% it will grow this year. This is one. When it comes to four wheel drive traction within the same, within the same basket, the pie of the four wheel drive is increasing.
When it is increasing. So we are expecting that this volume will grow moving forward in the next quarter also. But at the same time our OEMs do the indirect export also. So this increase the indirect export, especially to the US market or to the European market is not that great. It is not in the same level as it used to be around three years ago. We are still at the bottom level. So that is affecting the growth in the total revenue which is given by the four wheel drive domestic market visery the drop in the export market.
So that is where the total revenue growth in the agricultural market is not same as what is happening in the tractor industry, 9 to 10%. However, with the way the four wheel drive is growing and we are expecting at least it should be, the export should be stable. So that is where we are seeing a conservative kind of estimate that we will grow around 7 to 10% this year in overall revenue. So it’s a mix of decline and increase.
Sonal Gupta
No, no, I was basically I was just trying to understand for this quarter itself. Right. So what sort of agri domestic growth would you have seen? Right. Like your overall agriculture is down 3% but I guess that’s because exports have declined. But the domestic agri revenues would have grown how much? If you.
Unidentified Speaker
If you talk about our as a growth we would have. Because see quarter on quarter, what happens? I’ll tell you it all. It’s a very short looking at year on year. So. Year on year?
Unidentified Participant
Yes, if you talk about the year, our guidance remains same what doctor said.
Unidentified Speaker
I’m talking about Q1 this quarter. I mean your agri equipment revenues are down 3% year on year. If you could split that into export and domestic. Right? Yeah. I’ll ask Davide to come in over here. Okay. So you want to understand the street by application market of our. Okay, so if you look Q1 versus. Q1, okay, my. Agri was actually increasing by 5%. I think we did this data. We have 83 million of increment on the agri segment on the domestic market, which includes the fewer domestic as well as what we call indirect exports. And when we look at the construction equipment, we are flat. We lost 10 million INR. But substantially we are flat. So as Shock was mentioning, when you read this agriculture segment for the domestic business, you ideally should try to split it in pure domestic and indirect export. This is an exercise which is a bit complicated. We try also ourselves to do it, but we do not have any official number.
That’s why we do not give a lot of disclosure on this. But the concept, the logic that Shock has mentioned is also what we see in our unofficial data. The pure domestic business is actually growing with the percentages that you have pretty much mentioned. But this growth is partially offset by the cooling down that we see on the indirect export front. We see that our customers which are typically exporting are suffering a little bit here. And the overall growth gets diluted on the domestic market. When we talk about the construction business, as we said, we are flattish with the backlog segment which is, which has slowed down during this quarter.
At the same time, actual sales went quite well with a bit of, let’s say, reshuffling of the mix of volumes. Because again in this case we have the opposite dynamic. We have seen that fewer domestic sales in construction have grown a little bit, mostly due to the introduction of the strength five regulation. And what the OEMs have done, they have tried to push more the export side at their end. So overall it’s pretty much even. But the internal mix of those volumes has changed a little bit in this quarter.
Unidentified Participant
Got it. Thank you, Davide. And just on the. I mean the point around non captive. So would what would be the share of non captive in the four wheel drive segment for tractors domestically?
Davide Grossi
I’m expecting almost, I’m expecting almost in. The total market it should be around. 35% should be the 35 to 40% would be non captive from 41 horsepower. To 41 horsepower and above. But in case of below 41 horsepower. And all, it’s normally a captive, 100% captive. So that is why overall market. But in our segment in which we. Operate 35 to 40% should be the captive.
Unidentified Participant
Okay, so we’re not operating in that 20 to 30.
Davide Grossi
No, we know 40 we don’t operate.
Unidentified Participant
Oh, okay.
Davide Grossi
Those are very small practice. 15 horsepower, 20, 25 in that range. So technology. And technology is also very basic. Right, but I thought that, I mean like some players like Mahindra Oja and all are also playing in those segments which are sort of a little. Doesn’t have the legacy to work on small tractors. Ours our strength is 40 and above. Because the challenge of technology, durability and the reliability from an engineering point of view increases as the horsepower goes higher. So lower horsepower, the duty cycles are much easier. The technology is much simpler. So that is the reason Carraro focuses on higher horsepower. So we start with minimum 40 horsepower and we can go up to 150, 170 horsepower.
Sonal Gupta
Got it sir. And this last question from my side on the order wins that you’ve got especially on the high horsepower transmission systems. And one you mentioned that you will see a order starting Q2 as well. So are, I mean like just trying to get a magnitude or size of these orders. I mean like is this, something like that can really contribute a few percentage points of growth for us. Will that be the right way to look at the order sizes here?
Balaji Gopalan
We haven’t actually bifurcated exactly between higher horsepower versus the other products that we have, because these are all product mix. And that is why we have been struggling with convincing investors not to look at it from a quarter basis. It has to be at an annual basis. So these fluctuations are also very, very situational. And it is not really seasonal. We call it seasonal as a vocabulary, but it fluctuates based on the situation and the context. So what is a good quarter in 25 may not necessarily be a good quarter in 26. So we have to look at it in totality.
And when we look at the entire basket, we know that at the end of the year, where we will reach and what will be the numbers during that period. Because the order book changes based on what the customer needs, what is the season, what is their pipeline, what is the inventory level. So there are many things that get into it, even in terms of holidays, in terms of working days. So there is a spillover that happens. But within the 12 month period we are able to fill the order book. The commitment that OEMs have, book the capacities with us. So that is the reason we look. At it in totality. Revenue growth, like we said, 8 to 12% is a very realistic number. We are talking at looking at. We are not doubtful about it unless there is a major disaster during the year, that is a different thing, out of our control. Otherwise we should be crossing 215 to 220 million euro in terms of revenue for this financial year. So we are confident on that.
Davide Grossi
Maybe I just wanted to add one point here. When we talk about higher Earth power transmission, usually we are not talking about gigantic numbers. We are not talking about a boost in terms of size of the turnover or a game changer product in that sense. But whenever we talk about higher horsepower transmission, we usually talk about products which can help us to improve our overall profitability. So that’s the point that we want to highlight. Introducing more complex products, introducing more advanced products shows that we are moving in the direction of improving the overall profitability of our.
As we said that when we started business 27 years back, the technology that the market wanted was below what Carraro was having its strengths on. In the last five years. There is an uptick in that technology because everybody is looking at food security, efficiency, contract manufacturing, sorry, contract farming. So these things are kicking in. And the cream for Cararo lies in Higher technology products and higher horsepower products. So these are a kind of an indication the moment higher horsepower is picking up. These are positive signs for us. Similarly, electrification and hybrid in off highway. Probably five years back, everybody said it is a distant possibility to come into the off highway market. But in the last one year, 1.5 years, we are seeing lot of interest globally and locally for hybrid and electrification even in the off highway market. And that reason is we are working on couple of projects globally also for a big French OEM for electric vehicles.
We are working with an Indian OEM for launching the commercial electric tractor. So these are places where Carrara will improve its margin and that is the way forward for Carraro. So these are numbers like Davide said, not very big numbers but they are having good margins and that is the way forward for us. So in about five years, six years, we should have a portfolio wherein all these high horsepower, high tech products are passed of the portfolio that we will be deploying at that point in time.
Sonal Gupta
Thank you sir.
Balaji Gopalan
Thank you.
operator
A reminder to all participants, if you wish to ask any questions you may press star and 1. Anyone who wishes to ask a question, you may press star and one. Now we have a next question from line off. Mahesh Bindri from NIC Mutual fund. Please go ahead.
Unidentified Participant
Hi, good morning sir. Thank you for the opportunity.
operator
Sir, sorry to interrupt you. Mr. Mahesh, can you please be a little louder? Yes, I’m audible now.
Unidentified Participant
Yeah. Yes. Sir, exports have grown in this quarter. So what is the outlook for next year? I mean we have indicated that export has not picked up and might remain soft during the current year. But is there any possibility we see a turnaround in next year.
Balaji Gopalan
When we talk, as you rightly mentioned, that the exports are softening. But you have to understand when something is softening and we are also giving new products in the market. Especially when we talk about tele boom handler where we have introduced the new product in the last quarter and some high horsepower. So collectively we should be more or less even though dropping market, we should be stable or slightly higher in the export side in the next three to four quarters. And. Assuming that the situation remains same, if situation goes best, probably it will increase depending on how the global market performs. And that’s all in all, it’s just a mix of market drop and new. Product launches and increasing our market share in TBH in the export market. So the net effect will be we will have higher exports.
Unidentified Participant
Okay. And sir, given the new orders and. The new products, we are Planning to. Launch FY27 will also be like a. Double digit growth feasible in terms of sales growth.
Balaji Gopalan
It’s very, very difficult to predict because. You know, both geopolitical environment and how the monsoon fare in the next year. So there are many, many variables which it’s very difficult to predict beyond one year or beyond three, four quarters. But as Dr. Balaji said, as a next three to four years, we have a project in hand which will take us to the growth which we are projecting as a medium to long term.
Unidentified Participant
Sure. Okay, sure. Thank you so much, sir.
operator
Thank you. As there are no further questions from the participant, I now hand the conference over to the management for closing comments.
Balaji Gopalan
So thank you all for your active. Participation and interest in Carraro, India. We hope we have addressed your queries satisfactorily. For any further questions, please feel free. To reach out to Strategic Growth Advisors, our investor relations team. So thank you very much and have a good day. Thank you.
operator
Thank you. On behalf of Carraro India Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Balaji Gopalan
Thank you.