Carraro India Limited, an independent Tier-I solution provider for axles, transmission systems, gears and other related components, delivered exceptional financial performance in Q3 FY26, demonstrating strong momentum across its key business segments. The company reported robust growth in both quarterly and nine-month periods ended December 31, 2025.

Financial Performance Highlights

The company's financial results showcase significant improvement across all key metrics. For Q3 FY26, total income reached INR 5,768 Mn compared to INR 4,528 Mn in the previous year, representing a substantial 27% year-on-year growth.

*Includes impact of New Labor Code of INR 95 Million

The nine-month performance was equally impressive, with total income of INR 16,698 Mn reflecting 21% year-on-year growth. EBITDA margins improved to 10.6% from 10.0% in the corresponding period, while PAT margins expanded to 5.3% from 4.7%.

Segment-wise Operational Performance

The company demonstrated strong performance across all business segments. Agricultural equipment revenue reached INR 2,608 Mn in Q3 FY26, showing 27% growth, while construction equipment generated INR 2,386 Mn with 20% year-on-year increase.

The domestic market contributed INR 3,782 Mn in Q3 FY26 with 28% growth, while exports generated INR 1,913 Mn, marking 26% year-on-year increase. Export performance was particularly strong for the nine-month period, growing 29% to INR 6,027 Mn.

Key Business Developments

Several strategic initiatives contributed to the company's strong performance. The Tele Boom Handler axles business continued its ramp-up for a major international OEM, showing healthy traction with strong visibility for sustained growth. Sales of drivelines to construction equipment customers increased approximately 4% during the nine months, outperforming the broader market decline of 5%.

The engineering services business gained significant traction, generating INR 50 Mn in Q3 FY26 and INR 100 Mn for the nine-month period. The company signed an engineering services agreement worth INR 17.5 crore with Montra for industrialization and supply of e-transmissions.

Capacity Expansion and Strategic Investments

The Board approved a capex outlay of INR 623 Mn to expand axle capacity from 115,000 to 154,160 units over the next 18 months. This expansion addresses the strong demand outlook, with the plant currently operating at over 90% utilization. During 9M FY26, the company deployed capex of INR 304 Mn to support new telescopic handler axle production and high-performance transmission range for agricultural applications.

Management Commentary

Dr. Balaji Gopalan, Managing Director, highlighted the company's transformation and innovation leadership across markets and technologies. He emphasized the strong revenue growth supported by healthy momentum across domestic and export markets, with domestic revenues increasing 17% year-on-year and exports growing 29% year-on-year. The management expressed confidence in scaling Carraro India beyond earlier guidance in revenues by FY30, while maintaining focus on disciplined execution and value-driven growth.

Carraro India Limited has inaugurated its first authorised service centre in Faridabad on January 22, 2026, through PHE Industries Pvt. Ltd., marking a significant milestone in the company's aftermarket expansion strategy. This development forms part of Carraro India's comprehensive growth roadmap to establish four authorised service centres across the country by 2026, spanning the North, South, East, and West regions.

Strategic Expansion Initiative

The inauguration ceremony was conducted in the presence of key leadership including Andrea Conchetto, CEO of Carraro Group Italy, and Dr. Balaji Gopalan, Managing Director of Carraro India Limited, along with partners, customers, and other stakeholders. The Faridabad service centre is strategically positioned to serve customers across North India, providing comprehensive service support and access to genuine Carraro spare parts.

Service Capabilities and Market Focus

The planned rollout of four state-of-the-art authorised service centres, combined with a strengthened nationwide network of authorised spare parts distributors and dealers, is designed to meet growing demand across the agriculture, construction, and material handling sectors. The service centres will deliver OEM-grade spare parts, expert repairs, and rapid technical support for tractors, construction equipment, and material handling machinery.

This expansion aims to enhance equipment uptime for OEMs and end-users while reinforcing Carraro India's authorised service and distribution network. The initiative seeks to ensure reliable access to genuine components while reducing downtime and operating costs in a market positioned for growth driven by infrastructure development and farm mechanisation.

Leadership Perspectives

Dr. Balaji Gopalan, Managing Director of Carraro India Limited, commented on the expansion: "Our expansion reflects Carraro's commitment to powering India's off-highway sector. These four regional hubs and expanded dealer network will drive an important growth in spares business. This initiative directly supports Atmanirbhar Bharat by ensuring Indian OEMs and end-users in agriculture, construction, and material handling gain faster access to genuine OEM-grade parts, expert repairs, and minimised downtime."

Andrea Conchetto, CEO of Carraro Group, added: "India's dynamic market demands robust aftermarket support, and this network rollout positions Carraro as the go-to partner for sustainable, high-performance drivetrains. With four new state-of-the-art service centres spanning North, South, East, and West India by 2026, plus an expanded ecosystem of authorised distributors and dealers, we're building a future-proof infrastructure."

Company Background

Carraro India Limited, established in 1997, operates as a technology-driven integrated supplier developing complex engineering products and solutions for OEM customers. The company serves as an independent Tier-I solution provider for axles, transmission systems, gears, and other related components with in-house product design and manufacturing capabilities supporting the full value chain of services.

The company manufactures products for agricultural tractors, construction equipment including backhoe loaders, compact wheel loaders, telehandlers, cranes, forklifts, and aerial working platforms. Additionally, Carraro India produces gears, shafts, and ring gears for industrial and automotive vehicles, supported by strong in-house R&D capabilities with proprietary IP rights.