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.

Carraro India Limited has received significant tax relief from income tax authorities, marking a favorable resolution to a long-standing tax dispute. The company announced receipt of an Order Giving Effect (OGE) dated January 16, 2026, from the Deputy Commissioner of Income Tax, Circle-1(1) Pune, providing substantial financial benefits related to Assessment Year 2011-12.

Tax Relief Details

The income tax authorities have granted Carraro India comprehensive relief following the Bombay High Court's favorable ruling on the company's writ petition. The OGE, bearing DIN & Document No. ITBA/GEA/S/91/2025-26/1084874057(1), was received through the income tax portal after weekly working hours on January 16, 2026.

Court Victory and Implementation

The order gives effect to the Bombay High Court's decision, where the writ petition filed by Carraro India was allowed in the company's favor. This judicial victory has resulted in relief from the tax demand of ₹2.74 crores that was originally raised by lower tax authorities for Assessment Year 2011-12. The court's ruling validates the company's position in the tax dispute that has been ongoing since the 2011-12 assessment period.

Financial Implications

The favorable order will have multiple positive impacts on Carraro India's financial position. The company will experience a reduction in contingent liabilities by ₹2.74 crores, representing the amount of tax demand relief granted. Additionally, Carraro India is entitled to receive a tax refund of ₹5.26 crores, which represents funds paid under protest when filing the original appeal.

Regulatory Compliance

Carraro India has disclosed this development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company had previously disclosed this litigation at Serial Number 15 of Section VI in its prospectus dated December 26, 2024, demonstrating transparent communication with stakeholders about material legal proceedings.

Conclusion

This favorable tax ruling represents a significant positive development for Carraro India, providing both immediate financial relief and improved cash flow prospects. The resolution of this decade-old tax dispute removes uncertainty and strengthens the company's financial position through reduced contingent liabilities and expected cash inflows totaling nearly ₹8 crores.