Carraro India Limited has reported a strong set of numbers for FY26, underscoring its growing role as a Tier‑I supplier of axles, transmissions, and gears to global OEMs. The company’s consolidated income rose 25% year‑on‑year to ₹22,840 million, while profit after tax surged 48% to ₹1,306 million, reflecting disciplined cost management and operating leverage.
Exports emerged as a key growth driver, climbing 37% on the back of sustained momentum in construction equipment, particularly Tele Boom Handler (TBH) and Backhoe Loader (BHL) axles. Domestic revenues also grew 19%, supported by the accelerated transition from 2WD to 4WD tractors following GST-led price equalization.
Operationally, Carraro India ramped up its TBH axle programme for a major international OEM, while expanding its footprint in the domestic BHL segment despite a broader market decline. The engineering services division gained traction, signing a ₹175 million agreement with Montra Electric for e‑transmissions and reporting revenues of ₹100 million in FY26.
The company also secured a bull gear nomination worth ₹150 million annually from FY28, signaling long‑term confidence in its gears business despite current subdued demand. Capex of ₹417 million was deployed to expand axle and transmission capacity, with the Board approving further investments to raise axle capacity to 154,160 units. Dividend payout has been recommended at ₹6.75 per share, translating to a 30% distribution, reflecting strong cash flows and shareholder commitment.
Managing Director Dr Balaji Gopalan described FY26 as “a strong and encouraging year for Carraro India, with healthy growth across domestic and export markets. The accelerated shift to 4WD tractors and sustained export traction in construction equipment have positioned us well for the next phase of growth. Our engineering services business is scaling up meaningfully, and with continued investments in capacity and technology, we are confident of sustaining momentum across key end markets.”
With exports continuing to anchor growth and domestic agriculture showing structural shifts toward higher‑performance driveline solutions, Carraro India enters FY27 with a stronger foundation, deeper customer relationships, and a healthy demand outlook across its core segments.
Marex Media