Carraro India Reports Strong FY26 Growth with 48% Rise in Profit After Tax

Carraro India Limited has reported strong financial performance for FY2025-26, supported by healthy domestic demand, robust export growth, and improving profitability across its agricultural and construction equipment businesses.

The company’s total income for FY26 stood at ₹22,840 million, reflecting a 25% year-on-year increase. EBITDA, including other income, rose 33% to ₹2,475 million, while EBITDA margins improved to 10.8% compared to 10.2% in FY25.

Profit after tax (PAT) increased 48% year-on-year to ₹1,306 million, with PAT margins improving to 5.7% from 4.8% in the previous financial year. The reported PAT includes the impact of the new labour code amounting to ₹95 million.

The company recorded strong growth across all major operational segments. Revenue from agricultural equipment rose 19% year-on-year to ₹10,192 million, while construction equipment revenue grew 31% to ₹9,837 million. Revenue from other business segments increased 25% to ₹2,526 million.

Domestic business revenue grew 19% to ₹14,430 million, while export revenue surged 37% to ₹8,125 million, driven primarily by rising demand in the construction equipment segment.

Dr. Balaji Gopalan said FY26 marked a strong and encouraging year for the company, supported by sustained growth across domestic and international markets along with improved operating profitability.

The company highlighted strong momentum in India’s transition from two-wheel-drive to four-wheel-drive tractors following GST-led pricing changes that narrowed the cost gap between the two categories. Carraro India said this structural shift has accelerated demand for 4WD axles, prompting the company to ramp up production capacity.

In the construction equipment segment, the ramp-up of Tele Boom Handler (TBH) axle production for a major international OEM continued during the year, with management indicating strong visibility for sustained export growth.

Carraro India also strengthened its engineering services business during FY26, reporting revenues of approximately ₹100 million from the segment. The company signed an engineering services agreement worth ₹17.5 crore with Montra Electric for the industrialisation and supply of e-transmissions.

The project has progressed to prototype supply for field validation, while discussions with additional customers for engineering services are ongoing.

The company further secured a new business nomination from a major OEM for bull gears valued at approximately ₹15 crore annually beginning FY28, supporting its efforts to strengthen the gears business.

On the manufacturing front, Carraro India deployed capex of ₹417 million during FY26 to support new telescopic handler axle production, advanced agricultural transmission programmes, and incremental capacity expansion.

The Board of Directors has also recommended a final dividend of ₹6.75 per equity share for FY26, translating into a payout ratio of around 30%, subject to shareholder approval.

Carraro Group operates globally in driveline systems for agricultural and construction equipment, with Carraro India serving as a key engineering and manufacturing hub with strong in-house research and development capabilities.

Industry analysts note that rising mechanisation in agriculture, growth in construction equipment exports, and increasing demand for advanced driveline technologies position Carraro India favourably for continued expansion in both domestic and international markets.
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