Carraro India

Carraro India delivered a strong financial performance for Q3 and 9M FY26. Revenue from operations grew 27% year-on-year in Q3 to INR569.6 crores and 21% year-on-year in 9M FY26 to INR1,648.8 crores. Profitability saw significant improvement, with Q3 EBITDA growing 71% year-on-year to INR62.4 crores, translating to an EBITDA margin of 10.8% compared to 8.1% in Q3 FY25. For the nine-month period, EBITDA grew 28% year-on-year to INR176.5 crores, with a margin of 10.6% versus 10% in 9M FY25. PAT also increased significantly, up 91% in Q3 to INR28.1 crores and 38% in 9M FY26 to INR88.9 crores.

The broader agriculture equipment industry remained resilient, supporting Carraro India's domestic agriculture segment revenue growth of 17% year-on-year, driven by strong demand for four-wheel drive axles. Exports demonstrated even stronger growth of 29% year-on-year, primarily led by increased offtake of Tele Boom Handler axles. In the construction equipment segment, sales increased by approximately 4% during the first nine months, outperforming the overall market decline of 5%. The gear business, however, remained subdued, with near-term growth expected to be muted.

To meet robust demand and high plant utilization (nearly 90%), the board approved a capex outlay of INR623 million to expand axle capacity from 1,34,000 units to 1,54,000 units over the next 18 months. During 9M FY26, INR304 million was deployed to support new telescopic handler axle production, high-performance range transmission for agriculture, and incremental capacity additions. The total capex for FY27 is projected to be around INR130-INR140 crores.

Carraro Technologies, the company's engineering center, leveraged its in-house design capabilities to receive multiple inquiries from OEMs for engineering support. Engineering services revenue for Carraro India stood at INR50 million in Q3 FY26 and INR100 million during 9M FY26. The company developed 14 prototypes, with four already entering production, and successfully completed the first batch of CVT transmission units, marking a key milestone towards commercialization.

Carraro India advanced its efforts to strengthen the aftermarket and after-sales ecosystem by inaugurating its first authorized service center in Faridabad in January 2026. This is part of a long-term plan to establish four such centers across India, strategically positioned to serve customers with genuine spare parts and OEM quality service. The initiative aims to improve customer experience, minimize downtime, and is expected to contribute 10% of total revenue from spares in India, up from the current 3.5%-4%.

Management expressed optimism for the future, upgrading the FY26 revenue guidance from INR3,200 crores to INR3,500 crores. The company is focused on disciplined execution, value-led growth, and delivering sustained performance. Key strategic initiatives include achieving 100 bps year-on-year EBITDA margin improvement, increasing raw material localization from 78% to 86%-88% in 2-3 years, and capitalizing on the growing four-wheel drive tractor market, aiming for 26%-27% market share by FY27.