Carraro India Limited , a leading manufacturer of transmission systems for off-highway vehicles, has reported a 4% year-on-year growth in revenue from operations for the first quarter of fiscal year 2026. The company's performance was driven by volume growth across both domestic and export markets, with a notable increase in the four-wheel drive axle segment.

Financial Highlights

• Revenue from operations reached INR 4,929.00 million in Q1 FY26
• EBITDA stood at INR 548.00 million, maintaining an 11% margin
• Profit after tax recorded at INR 291.00 million

Segment Performance

• Domestic volumes grew by 3% year-on-year
• Exports increased by 5% year-on-year
• Four-wheel drive axle segment showed strong demand, with a record production of 4,000 units in May 2025

Strategic Developments

• Secured a new teleboom handler axle project for the domestic market
• Completed a prototype for high horsepower transmission for an export customer
• Signed a commercial agreement to design electric tractor transmission

Market Position and Outlook

Dr. Balaji Gopalan, Managing Director of Carraro India Limited, stated, "We maintain a 60-65% market share in the non-captive four-wheel drive segment. Our focus remains on high-value product lines, increasing contribution from engineering services, and continued gains from localization."

The company has reiterated its FY26 revenue growth guidance of 8-12% and aims to improve its EBITDA margin by 100 basis points annually for the next 2-3 years.

Future Prospects

Carraro India is targeting to achieve EUR 350.00 million in revenue by FY28-29, driven by ongoing projects and prototypes for future customer requirements. The company is cautiously expanding its capacity to support growth while ensuring efficient cost management.

Mr. Davide Grossi, Whole-Time Director and CFO, commented, "Our strategy is to add products that will be gradually margin-accretive for the company. We are looking at touching EUR 350 million by FY28-29, which translates to roughly INR 3,300 crores to INR 3,400 crores."

Market Trends

The tractor market in India is showing positive signs, with expectations of 7-9% growth this year. The share of four-wheel drive tractors is increasing, currently estimated at 23-25% of the market.

Ashok Rai, Director of Sales and Marketing, noted, "We are expecting that this volume will grow moving forward in the next quarter also. However, indirect exports, especially to the U.S. and European markets, are not at the same level as they were around three years ago."

Carraro India continues to focus on higher horsepower and technologically advanced products, positioning itself for sustained growth in the evolving off-highway vehicle market.

Carraro India Limited , a leading Tier-1 supplier of axles and transmission systems, has reported a 5% year-on-year increase in total income for the first quarter. The company also announced a record date for its proposed final dividend of Rs. 4.55 per share.

Financial Performance

For the quarter ended June 30, Carraro India's consolidated total income stood at Rs. 4,999.00 million, up from Rs. 4,776.00 million in the same quarter last year. The company's EBITDA (including other income) grew by 2% to Rs. 548.00 million, maintaining a healthy margin of 11%. Net profit for the quarter rose by 5% to Rs. 291.00 million, with the profit margin holding steady at 5.8%.

Segment-wise Performance

The company's revenue from operations, which excludes other income, increased by 4% to Rs. 4,929.00 million. This growth was primarily driven by the construction equipment segment, which saw a robust 16% year-on-year increase to Rs. 2,178.00 million. However, the agricultural equipment segment experienced a slight decline of 3%, generating Rs. 2,219.00 million in revenue.

Domestic vs. Export Sales

Carraro India's domestic sales grew by 3% to Rs. 3,016.00 million, while export sales showed a stronger performance with a 5% increase to Rs. 1,913.00 million. The export growth was particularly noteworthy as it showed signs of recovery after two subdued quarters.

Operational Highlights

Dr. Balaji Gopalan, Managing Director of Carraro India, highlighted several key developments:

• The company achieved a new production high for 4WD axles in May, approaching 4,000 units.
• A pilot batch of Continuously Variable Transmission (CVT) units was successfully completed.
• A new 800-pallet MAZAK machining center was commissioned in June, enhancing throughput and machining flexibility.
• New orders were secured from key OEMs in both construction and agriculture segments.

Dividend Announcement

The Board of Directors has recommended a final dividend of Rs. 4.55 per equity share (45.50%) for the financial year ended March 31. The company has set September 3 as the record date for determining shareholder eligibility for the proposed dividend. If approved at the upcoming Annual General Meeting scheduled for September 11, the dividend will be paid to eligible shareholders between September 16 and October 10.

Future Outlook

Dr. Gopalan expressed optimism about the company's prospects, stating, "With the Indian economy expected to sustain its growth momentum, we anticipate increased infrastructure activity and capital spending, which should benefit both our construction and agriculture-linked portfolios." He projected a topline growth in the range of 8-12%.

Carraro India's focus on technology, automation, and customer alignment, coupled with its strong market position in the non-captive segments of agricultural tractor transmissions and construction vehicle transmissions, positions the company well for future growth in India's evolving automotive and off-highway vehicle markets.