Date: 06 th August, 2026

Financial Highlights

Q1 FY27 Consolidated Performance:

  • Total Income: ₹5,587 Mn, up 12% YoY (Q1 FY26: ₹4,999 Mn)
  • EBITDA (including other income): ₹579 Mn, up 6% YoY (Q1 FY26: ₹548 Mn)
  • EBITDA Margin: 10.4% (Q1 FY26: 11.0%)
  • PAT: ₹314 Mn, up 8% YoY (Q1 FY26: ₹291 Mn)
  • PAT Margin: 5.6% (Q1 FY26: 5.8%)

Operational Highlights

Segment-wise Revenue (₹ Mn):

  • Agricultural Equipment: ₹2,559 (Q1 FY26: ₹2,219), +15% YoY
  • Construction Equipment Others: ₹2,264 (Q1 FY26: ₹2,178), +4% YoY
  • Others: ₹624 (Q1 FY26: ₹532), +17% YoY
  • Total Revenue from Operations: ₹5,447 Mn (Q1 FY26: ₹4,929 Mn), +10% YoY

Geography-wise Revenue (₹ Mn):

  • Domestic: ₹3,795 (Q1 FY26: ₹3,016), +26% YoY
  • Export: ₹1,652 (Q1 FY26: ₹1,913), -14% YoY

Key Business Updates

Tele-boom Handler (TBH) - Construction Equipment:

  • Ramp-up of new range of TBH axles for a major international OEM continued with healthy traction and strong visibility for sustained growth
  • New projects with domestic customers (Global and Indian) for TBH family of axles progressing well and on track

Backhoe Loader (BHL) transmission & axles:

  • Overall BHL sales by Indian OEMs (domestic + exports) grew ~14% YoY during the quarter
  • Carraro's sales of drivelines to Indian OEMs increased ~18% YoY, outperforming the broader market

Engineering services business:

  • Receiving several enquiries for higher HP and technology configurations
  • ₹175 million e-transmission engineering project with Montra Electric progressing well, with prototype order received for field validation
  • Engineering services assignments worth ~₹33 million under discussion at quarter-end were subsequently received and finalized in July 2026
  • Discussions with another customer progressing positively
  • Expected YoY revenue growth in the segment

Domestic AG 4WD Axle & Gears business:

  • GST reduction narrowed price gap between 4WD and 2WD tractors, accelerating shift towards 4WD models
  • Domestic 4WD axle demand continues to grow as anticipated, with capacity ramp-up to support future demand
  • Gears business remained subdued in Q1 FY27, with efforts underway to strengthen business for gradual improvement
  • Secured business nomination from major OEM for bull gears valued at ~₹150 million p.a. effective FY28
  • Working with two new customers/projects in gears business

Agri higher HP Transmission:

  • Export market gradually recovering, which could positively impact transmission offtake for high HP tractors
  • Higher HP tractor transmission projects with customer in Turkey and customers in India progressing well
  • Start of production for Turkish customer commenced in Q1 FY27
  • SOP for Indian customer expected by FY28

Export business (both direct & indirect):

  • Export market conditions remained challenging due to ongoing geopolitical uncertainty and uneven demand across key overseas markets
  • Resilient domestic demand continues to support overall volume trajectory

Capex Update:

  • In Q1 FY27: Construction of new paint-shop building commenced
  • Side-drive sub-assembly line and backlash machine commissioned to enhance Portal axle capacity and increase differential-support capacity on 4WD line
  • During FY26: Deployed ₹417 million towards new telescopic-handler axle production, high-performance agricultural transmissions, and capacity expansion

Management Commentary

Dr. Balaji Gopalan, Managing Director, commented:

Q1 FY27 Performance: Resilient start with revenue from operations up 10% YoY to ₹5,447 million supported by sustained domestic momentum. Domestic revenue grew ~26% YoY driven by robust demand for 4WD axles despite monsoon uncertainty. Export revenue declined ~14% YoY due to geopolitical disruptions and uneven global demand.

Profitability: Improved in absolute terms with EBITDA up ~6% and PAT up ~8% YoY. EBITDA margins affected by higher energy and raw-material costs from geopolitical disruption and labour availability constraints. Disciplined cost management and execution efficiencies helped contain impact.

Outlook: Global market conditions remain uncertain due to geopolitical developments and mixed demand trends. Strong domestic momentum, recovering supply chains, ramp-up of new programmes and ongoing capacity additions position the company well for FY27. Focused on delivering positive growth with better cost absorption, improved operating efficiencies, higher utilisation levels and continued cost discipline expected to support margin improvement towards medium-term revenue and profitability objectives.