Carraro India Limited, a Tier-I supplier of axles, transmission systems, gears and related components for off-highway equipment, reported a robust performance for the first half of FY27, supported by strong domestic demand in the agricultural and construction equipment sectors.
The company posted total income of ₹12.64 billion in H1 FY27, marking a 16% year-on-year increase, while revenue from operations grew 15% to ₹12.41 billion. EBITDA, including other income, rose 8% to ₹1.23 billion, and profit after tax increased 9% to ₹665 million.
Domestic operations remained the principal growth engine during the period. Domestic revenue climbed 30% year-on-year to ₹8.65 billion, offsetting softer export demand, which declined 9% amid continued geopolitical and supply-chain challenges in international markets.
The agricultural equipment segment delivered particularly strong performance, recording 23% growth in H1 FY27, while construction equipment revenue increased 8%. The company attributed this growth to sustained demand for agricultural four-wheel-drive axles and encouraging traction in the domestic construction equipment market.
Commenting on the results, Dr. Balaji Gopalan, Managing Director of Carraro India Limited, said the company had demonstrated resilience despite global uncertainties, with its balanced business model helping mitigate volatility across geographies and customer segments. He highlighted the domestic agricultural market as a key opportunity, noting that the ongoing shift towards 4WD tractors continues to outpace overall tractor industry growth.
In the construction equipment business, Carraro reported continued progress in its Tele-boom Handler (TBH) axle programmes, with several projects already in production and additional programmes undergoing prototype and field validation. The domestic backhoe loader market also showed encouraging growth trends during the period.
The company continued to invest in future growth and manufacturing capabilities. During H1 FY27, it incurred capital expenditure of ₹204 million, including the start of construction of a new paint-shop facility and investments aimed at expanding production capacity for portal axles and differential-support assemblies.
Carraro also reported progress in its engineering services business, including ongoing development work with Montra Electric on an e-transmission project and additional engineering assignments from domestic customers. The company developed seven prototypes during the first half, with one programme progressing to production.
Looking ahead, management remains optimistic about demand across its key product segments. While acknowledging margin pressures from higher input and logistics costs, the company expects continued revenue growth supported by capacity expansion, a broader product portfolio, cost optimisation initiatives, and a strengthening aftermarket network.
Marex Media
Release By Adfactors PR