Carraro India Limited, a leading Tier-I supplier of axles, transmission systems, gears, and driveline solutions for agricultural and construction equipment, reported a robust financial performance for the fourth quarter and full year ended March 31, 2026.
The company posted a 25% year-on-year increase in total income for FY26, reaching INR 22,840 million, compared to INR 18,234 million in FY25. EBITDA, including other income, rose 33% year-on-year to INR 2,475 million, while EBITDA margins improved to 10.8% from 10.2% in the previous fiscal.
Profit After Tax (PAT) surged 48% year-on-year to INR 1,306 million, with PAT margins expanding to 5.7%, reflecting improved operational efficiency and strong demand across key business segments.
For the fourth quarter of FY26, Carraro India reported total income of INR 6,142 million, marking a 37% increase over the same quarter last year. Quarterly PAT rose sharply by 76% to INR 417 million.
Export Business Drives Growth
Exports emerged as a major growth engine for the company during FY26, recording a 37% year-on-year increase to INR 8,125 million. The company attributed the strong export performance primarily to rising demand for construction equipment components, especially Tele Boom Handler (TBH) and Backhoe Loader (BHL) driveline systems.
Domestic revenues also remained healthy, increasing 19% year-on-year to INR 14,430 million, supported by strong momentum in the agricultural equipment segment.
Strong Momentum in Agricultural and Construction Equipment Segments
Revenue from the agricultural equipment segment grew 19% year-on-year to INR 10,192 million during FY26, while the construction equipment business registered an even stronger growth of 31%, reaching INR 9,837 million.
Carraro India said the domestic market witnessed accelerated adoption of 4WD tractors following GST-related pricing changes that narrowed the price gap between 2WD and 4WD tractors. This trend significantly boosted demand for 4WD axles, prompting the company to ramp up manufacturing capacity.
The company also highlighted continued traction in its TBH axle programs for global OEMs and improving demand visibility in the export market for higher horsepower tractor transmissions.
Expansion in Engineering Services and EV Projects
Carraro India’s engineering services business gained momentum during FY26, generating approximately INR 100 million in revenue. The company signed an engineering services agreement worth INR 175 million with Montra Electric for the industrialization and supply of e-transmissions.
According to the company, the project is progressing well, and prototype orders have already been received for field validation.
The company also reported growing customer enquiries for advanced driveline technologies and higher horsepower configurations, indicating rising demand for specialized engineering solutions.
Capacity Expansion and Future Outlook
During FY26, Carraro India invested INR 417 million in capital expenditure to support new axle production programs, transmission expansion, and capacity enhancement initiatives.
The Board of Directors has recommended a final dividend of INR 6.75 per equity share, representing a payout ratio of approximately 30%, subject to shareholder approval.
Commenting on the performance, Dr. Balaji Gopalan, Managing Director of Carraro India Limited, said the company enters its next growth phase with stronger customer relationships, increasing localization, improved engineering capabilities, and healthy demand visibility across both domestic and export markets.
Established in 1997, Carraro India operates two manufacturing facilities in Pune and serves global OEMs in the agricultural and construction equipment industries. The company is part of the global Carraro Group, known for designing and manufacturing transmission systems and driveline solutions for off-highway vehicles.
