Financial Performance Summary

H1 FY27 Performance (Half Year Ended 30th September, 2026)

  • Total Income: INR 12,644 Mn, representing 16% year-on-year growth from INR 10,930 Mn in H1 FY26
  • EBITDA (including Other Income): INR 1,232 Mn, showing 8% year-on-year growth from INR 1,141 Mn in H1 FY26
  • EBITDA Margin: 9.7%, compared to 10.4% in H1 FY26
  • PAT: INR 665 Mn, demonstrating 9% year-on-year growth from INR 608 Mn in H1 FY26
  • PAT Margin: 5.3%, compared to 5.6% in H1 FY26

Q2 FY27 Performance (Quarter Ended 30th September, 2026)

  • Total Income: INR 7,058 Mn, representing 19% year-on-year growth from INR 5,931 Mn in Q2 FY26
  • EBITDA (including Other Income): INR 652 Mn, showing 10% year-on-year growth from INR 593 Mn in Q2 FY26
  • EBITDA Margin: 9.2%, compared to 10.0% in Q2 FY26
  • PAT: INR 351 Mn, demonstrating 11% year-on-year growth from INR 317 Mn in Q2 FY26
  • PAT Margin: 5.0%, compared to 5.3% in Q2 FY26

Segment-wise Operational Performance

Product Segment Revenue (INR Mn)

| Segment | Q2 FY27 | Q2 FY26 | Y-o-Y | H1FY27 | H1FY26 | Y-o-Y |

| Agricultural Equipment | 3,300 | 2,562 | 29% | 5,859 | 4,781 | 23% |

| Construction Equipment | 2,979 | 2,672 | 12% | 5,243 | 4,850 | 8% |

| Others | 686 | 629 | 9% | 1,309 | 1,161 | 13% |

| Total | 6,965 | 5,863 | 19% | 12,411 | 10,792 | 15% |

Geographic Revenue (INR Mn)

| Region | Q2 FY27 | Q2 FY26 | Y-o-Y | H1FY27 | H1FY26 | Y-o-Y |

| Domestic | 4,859 | 3,662 | 33% | 8,654 | 6,678 | 30% |

| Export | 2,106 | 2,201 | -4% | 3,758 | 4,113 | -9% |

| Total | 6,965 | 5,863 | 19% | 12,411 | 10,792 | 15% |

Key Business Highlights (H1FY27)

Construction Equipment Segment

  • Tele-boom Handler (TBH): Ramp-up of new TBH axle range for a major international OEM continued as planned
  • Domestic TBH Market: Grew to approximately 800 machines in H1FY27, presenting growth opportunities
  • New Projects: 4-5 TBH driveline programmes undergoing field/prototype testing with Indian OEM customers
  • Backhoe Loader (BHL): Domestic market showed encouraging growth with further traction during festive season

Agricultural Equipment Segment

  • Domestic 4WD Axle Demand: Continues to outperform overall tractor industry with sustained growth momentum expected
  • Capacity Expansion: Company ramping up capacity to cater to future demand
  • Gears Business: Showed positive traction during H1FY27, though full-year performance expected to remain flat
  • Spare Parts Business: Recorded strong growth driven by increased penetration of Carraro drivelines and expansion of aftermarket dealer distributor network
  • Agri Higher HP Transmission: Export markets yet to gain momentum, temporarily impacting higher-HP tractor transmission offtake

Engineering Services Business

  • e-transmission Project: Engineering project with Montra Electric progressing well, with prototype order received for field validation
  • Additional Assignment: Engineering services assignment received from customer in western India
  • Ongoing Discussions: Progressing with other customers to secure additional engineering services business

Capital Expenditure

  • H1 FY27 Capex: INR 204 million incurred
  • New Projects: Construction of new paint-shop building commenced
  • Capacity Enhancements: Side-drive sub-assembly line and backlash machine commissioned to enhance portal axle capacity and increase differential-support capacity on the 4WD line
  • FY26 Investment: INR 417 million invested in new telescopic-handler axle production, high-performance agricultural transmissions and capacity expansion

Management Commentary

Dr. Balaji Gopalan, Managing Director, highlighted:

  • Revenue from operations grew 15% year-on-year during H1FY27
  • Domestic revenues increased 30% year-on-year, primarily driven by strong demand for agricultural 4WD axles and construction equipment performance
  • International markets faced geopolitical and supply-chain challenges
  • Profitability improved in absolute terms despite margin pressure from higher raw-material, energy, transportation and conversion costs
  • Company working towards recovering additional costs from customers, though process involves time lag
  • Focus on cost optimization, productivity enhancements and operational efficiencies expected to support gradual margin improvement
  • Domestic agricultural segment remains important growth opportunity with transition towards 4WD tractors progressing as expected
  • Construction equipment Tele-boom Handler axle programmes gaining traction with multiple projects in validation phase
  • R&D efforts focused on translating engineering capabilities into business opportunities - 7 prototypes developed in H1FY27, with one successfully progressing to production
  • Engineering services engagement with Montra Electric progressing through prototype development and field validation
  • Operational strengthening through targeted investments in capacity, technology and process improvements
  • Recognition among India's Most Admired Export Enterprises 2026 by ET Now

Outlook

  • Remain positive about underlying demand environment and opportunities across key product segments
  • Revenue performance encouraging and broadly aligned with growth outlook for FY27
  • Margin recovery expected to be more gradual
  • Focus on improving profitability in absolute terms through higher volumes, progressive cost recovery and operating efficiencies
  • Expanding product portfolio, customer relationships and ongoing capacity investments provide strong foundation for sustainable growth over medium term

Company Background

Carraro India Limited, established in 1997, is a technology-driven integrated supplier that develops complex engineering products and solutions for OEM customers. The company is an independent Tier-I solution provider for axles, transmission systems, gears and related components with in-house product design manufacturing capabilities. Part of the Carraro Group, the company designs, manufactures, and sells transmission systems mainly for agricultural and construction equipment and off-highway vehicles. The company operates two manufacturing plants in Pune with strong in-house R&D capabilities and proprietary IP rights, with a network of 245+ suppliers domestically and internationally.