Carraro India Ltd, (NSE:CARRARO BSE:544320), part of Italy-based Carraro Group, reported robust quarterly growth, supported by strong domestic demand and improving exports. The company is a Tier-1 supplier of axles, transmission systems, and gears for agricultural and construction equipment OEMs.
The company operates two manufacturing facilities and an R&D center in Pune, serving domestic and global customers with driveline solutions and engineering services.
Q3 FY26 Financial Performance
- Revenue from operations rose 27% year-on-year to ₹5,696 million.
- Total income increased to ₹5,768 million.
- EBITDA surged 71% YoY to ₹624 million, lifting EBITDA margin to 10.8% from 8.1%.
- Profit after tax nearly doubled to ₹281 million, up 91% YoY, with PAT margin improving to 4.9%.
- Gross margin expanded to 28.2%, reflecting operating leverage and disciplined cost management.
9M FY26 Financial Performance
- For the nine months ended December 2025, revenue from operations grew 21% YoY to ₹16,488 million, driven by domestic volumes and export recovery.
- Total income reached ₹16,698 million.
- EBITDA increased 28% to ₹1,765 million, while PAT rose 38% to ₹889 million.
- Domestic revenues grew 17%, supported by strong 4WD axle demand in agriculture, while exports expanded 29%, led by construction equipment demand.
- EBITDA margin improved to 10.6% and PAT margin to 5.3%.
Segment Highlights
- Agricultural vehicles and construction equipment remained key revenue contributors.
- Construction vehicle revenue rose sharply, reflecting strong demand for tele-boom handler (TBH) axles and backhoe loader drivelines.
- Domestic agricultural growth was supported by the shift toward 4WD tractors following GST changes.
- Engineering services gained traction, generating ₹50 million revenue in Q3 and ₹100 million in 9M FY26, supported by development programs including electric tractor transmissions and new prototypes.
Business & Operations Update
- The company continued ramping up TBH axle production for a global OEM and advanced new projects with domestic customers.
- Capacity expansion remains a focus, with board approval for ₹623 million capex to increase axle capacity from 1,15,000 units to 1,54,160 units over 18 months.
- Manufacturing capability upgrades and new equipment additions enhanced throughput and quality.
- Carraro India also inaugurated its first authorized service center and plans to establish four centers in India in 2026 to strengthen aftermarket support.
Other Major Highlights
- Exports demonstrated strong momentum, while domestic construction equipment driveline sales outperformed market declines.
- The company signed a ₹17.5 crore engineering services agreement with Montra Electric for e-transmission development.
- Capex deployment of ₹304 million supported new product development, telescopic handler axle production and expanded transmission offerings.
Investor Sentiment & Outlook
Management highlighted positive off-highway market sentiment and sustained volume momentum, indicating confidence in exceeding earlier revenue ambitions by FY30. Profitability improvements were driven by execution efficiencies and cost discipline, despite dynamic product mix trends.
Summary
Carraro India delivered strong Q3 and 9M FY26 results, marked by revenue growth, expanding margins and rising profitability. Export recovery, agri 4WD axle demand and engineering services traction supported performance. Capacity expansion, product innovation and strengthening aftermarket presence position the company for continued growth amid improving off-highway equipment demand.