EBITDA rises 33 per cent and PAT jumps 48 per cent as export acceleration and structural agri demand reshape growth profile

Carraro India Limited, an independent Tier-I solution provider for axles, transmission systems, gears and related driveline components, reported its audited financial results for the quarter and year ended 31 March 2026, delivering strong growth across revenue, profitability, and exports, driven by robust demand in agricultural and construction equipment markets.

For FY26, the company reported total income of Rs 22,840 Mn, up 25 per cent year-on-year, supported by strong domestic demand and robust export traction. EBITDA (including other income) stood at Rs 2,475 Mn, growing 33 per cent year-on-year, with EBITDA margin improving to 10.8 per cent from 10.2 per cent in FY25, driven by operating leverage, disciplined cost management, and execution efficiencies. Profit after tax (PAT) rose sharply to Rs 1,306 Mn, marking a 48 per cent year-on-year increase, despite a one-time impact of Rs 95 Mn related to the New Labour Code, with PAT margin expanding to 5.7 per cent from 4.8 per cent in FY25.

In Q4 FY26, total income stood at Rs 6,067 Mn, up 37 per cent year-on-year compared to Rs 4,443 Mn in Q4 FY25, with agricultural equipment revenue at Rs 2,784 Mn (up 37 per cent), construction equipment at Rs 2,613 Mn (up 36 per cent), and others at Rs 670 Mn (up 40 per cent), reflecting broad-based growth across segments.

On a full-year basis, agricultural equipment revenue rose to Rs 10,192 Mn, up 19 per cent year-on-year, while construction equipment grew to Rs 9,837 Mn, up 31 per cent year-on-year, and the “others” segment increased to Rs 2,526 Mn, up 25 per cent year-on-year, taking total revenue from operations to Rs 22,555 Mn. Domestic revenue stood at Rs 14,430 Mn, up 19 per cent year-on-year, while exports surged 37 per cent year-on-year to Rs 8,125 Mn, driven primarily by strong traction in construction equipment, particularly Tele-boom Handler (TBH) and Backhoe Loader (BHL) applications, supported by continued demand from global OEM programs.

Operationally, the agricultural segment witnessed strong momentum driven by an accelerated shift from 2WD to 4WD tractors following GST-led price parity improvements, resulting in robust growth in the domestic 4WD axle market, with 4WD adoption outpacing overall tractor market growth, prompting capacity expansion to meet future demand. In construction equipment, TBH axle ramp-up continued for a major international OEM with strong visibility for sustained growth, while new TBH programs with domestic customers remained on track; BHL driveline sales to Indian CE customers increased by approximately 9 per cent despite a broader CE market decline of around 2 per cent, while domestic BHL sales outperformed a nearly 10 per cent industry decline, with exports further supporting overall growth.

In the agri higher horsepower transmission segment, export markets showed gradual recovery, with multiple projects progressing across Carraro Tractors, Turkey-based customers, and Indian OEMs, including a tractor equipped with Carraro driveline showcased at Agritechnica in Hanover in November 2025; SOP timelines include FY27 for the Turkey customer and FY28 for Indian customers. The engineering services business gained traction with revenues of approximately Rs 100 Mn in FY26, including a Rs 17.5 crore agreement with Montra Electric (TICMPL) for industrialisation and supply of e-transmissions, with prototype orders already received for field validation and additional customer discussions underway, indicating strong future scaling potential.

The gears business remained subdued during FY26, although the company secured a nomination from a major OEM for bull gears valued at approximately Rs 15 crore per annum starting FY28, alongside ongoing engagement with two additional customers/projects, expected to support gradual improvement in the coming quarters. Export performance remained strong with 37 per cent year-on-year growth, led by TBH and BHL construction equipment programs, while indirect agri exports remained soft, partially offset by resilient domestic demand.

During FY26, Carraro India deployed capex of Rs 417 Mn toward new tele-boom handler axle production, high-performance agricultural transmission programs, and incremental capacity expansion, with the Board approving axle capacity expansion to 1,54,160 units to support future demand growth. The Board also recommended a final dividend of Rs 6.75 per equity share, implying an overall payout of approximately 30 per cent, subject to shareholder approval at the AGM, reflecting strong cash flow generation and shareholder return commitment.

Commenting on the performance, Managing Director Dr. Balaji Gopalan said FY26 was a strong year marked by healthy growth across domestic and export markets, margin expansion, and improved profitability driven by operating leverage and execution efficiency, while highlighting that structural growth in 4WD tractors, recovery in exports, and scaling engineering services will continue to drive the next phase of growth, supported by ongoing investments in capacity, technology, localisation, and customer ecosystem strengthening.