Carraro India has seen a significant reduction in Motilal Oswal Mutual Fund's stake through a block deal, with the fund selling 10 lakh shares at ₹449.00 per share. Bajaj Allianz Life Insurance Company was identified as the buyer in this transaction.

Stake Reduction

Prior to this sale, Motilal Oswal's Small Cap Fund held a 1.85% stake in Carraro India, equivalent to 10.52 lakh shares, as of the end of the June quarter. This block deal represents a near-complete exit from their position in the company.

Stock Performance

Carraro India, which made its stock market debut in December, has been facing challenges since its initial public offering (IPO). The stock, initially priced at ₹704.00 during the IPO, listed at a discount. Following the news of this block deal, Carraro India's stock closed at ₹446.05, marking a 1.77% decline for the day. The current stock price remains approximately 37% below its IPO price.

Mutual Fund Holdings

Despite Motilal Oswal's exit, mutual funds continue to maintain a significant presence in Carraro India's ownership structure. Collectively, mutual funds hold a 12.66% stake in the auto components manufacturer. Some of the prominent fund houses with stakes in the company include:

This block deal highlights the dynamic nature of institutional investments in the Indian stock market, particularly in the small-cap segment. It also underscores the challenges faced by some recent IPOs in maintaining their listing prices in the face of market volatility and changing investor sentiments.

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.