The company reports Q2 total income of Rs 705.8 crore, while H1 FY27 income increases 16% to Rs 1,264.4 crore, driven by strong domestic demand.
Carraro India Limited has reported a 19% year-on-year increase in total income to Rs 705.8 crore for the second quarter of FY2027, compared to Rs 593.1 crore in the corresponding period last year. EBITDA, including other income, increased 10% to Rs 65.2 crore, while profit after tax (PAT) rose 11% to Rs 35.1 crore.
For the half year ended September 30, 2026, the company’s total income stood at Rs 1,264.4 crore, registering 16% growth over Rs 1,093 crore in H1 FY2026. EBITDA increased 8% to Rs 123.2 crore, while PAT grew 9% to Rs 66.5 crore.
The performance was supported by strong domestic demand, particularly for agricultural equipment components and construction equipment applications. However, profitability margins continued to face pressure from higher raw material, energy, transportation and conversion costs.
Domestic Business Drives Carraro India’s Q2 Growth
Carraro India’s operational revenue increased 19% year-on-year to Rs 696.5 crore in Q2 FY2027, compared to Rs 586.3 crore in the year-ago period.
Domestic revenue grew 33% to Rs 485.9 crore, while export revenue declined 4% to Rs 210.6 crore. The company attributed the domestic performance primarily to demand for agricultural four-wheel-drive (4WD) axles and encouraging activity in the construction equipment segment.
Agricultural equipment revenue increased 29% to Rs 330 crore during the quarter, compared to Rs 256.2 crore in Q2 FY2026. Construction equipment revenue rose 12% to Rs 297.9 crore, while the Others category recorded 9% growth to Rs 68.6 crore.
For H1 FY2027, operational revenue increased 15% to Rs 1,241.1 crore. Domestic revenue grew 30% to Rs 865.4 crore, while exports declined 9% to Rs 375.8 crore.
EBITDA Margin Declines Despite Profit Growth
Carraro India’s Q2 EBITDA margin stood at 9.2%, compared to 10% in the corresponding quarter last year. PAT margin also declined to 5% from 5.3%.
For H1 FY2027, EBITDA margin was 9.7%, against 10.4% in H1 FY2026, while PAT margin stood at 5.3%, compared to 5.6%.
Managing Director Dr Balaji Gopalan said higher raw material, energy, transportation and conversion costs continued to affect margins. The company is working towards recovering these additional costs from customers, although the process involves a time lag. Cost optimisation, productivity improvements and operational efficiencies are expected to support gradual margin recovery.
Agricultural And Construction Equipment Businesses Expand
Carraro India highlighted continued demand for domestic 4WD tractor axles, with the segment outperforming the overall tractor industry. The company is ramping up capacity to cater to expected demand as the transition towards 4WD tractors progresses.
In construction equipment, the ramp-up of its new Tele-boom Handler (TBH) axle range for an international OEM continued as planned. Some programmes have entered series production, while another four to five programmes are undergoing field or prototype testing.
The domestic backhoe loader market also showed encouraging growth, with festive-season demand supporting sales. Carraro India further said that its spare parts business recorded strong growth during H1 FY2027, supported by increased penetration of its drivelines and expansion of its aftermarket dealer network.
Montra Electric Project And Capacity Investments
The company’s engineering services business received a prototype order for an e-transmission project with Montra Electric for field validation. It also secured an additional engineering services assignment from a customer in western India.
During H1 FY2027, Carraro India incurred capital expenditure of Rs 20.4 crore. Construction of a new paint-shop building commenced, while a side-drive sub-assembly line and a backlash machine were commissioned to improve manufacturing capacity.
The company also developed seven prototypes during the first half, with one progressing successfully to production.
Carraro India Remains Positive On FY27 Outlook
Dr Balaji Gopalan said the company’s revenue performance remained encouraging and broadly aligned with its FY2027 growth outlook. While margin recovery is expected to be gradual, Carraro India will focus on higher volumes, progressive cost recovery and operating efficiencies to improve profitability.
Established in 1997, Carraro India is a Tier-I supplier of axles, transmission systems, gears and related components for agricultural and construction equipment manufacturers. The company operates two manufacturing plants in Pune, supported by in-house research and development capabilities.
