Pune: Carraro India Limited, an independent Tier-I solution provider for axles, transmission systems, gears and other related components, has reported its unaudited financial results for the quarter and nine months ended 31st December 2025.
Other Key Business Highlights (9M FY26)
• Tele-boom Handler (TBH): Construction Equipment:
- Ramp-up of the new range of Tele Boom Handlers (TBH) axles for a major international OEM continued during the period under review, with healthy traction and strong visibility of sustained growth in the coming quarters.
- New Projects with a domestic customer (global and Indian) for the Tele Boom Handlers
(TBH) family of axles is progressing well & remain on track.
• Backhoe Loader (BHL) transmission & axles:
- Sales of drivelines to CE Indian customers increased by approx. 4% during the first nine months, while CE market is decline by -5% over the same period
- Sales of drivelines to BHL customers in the domestic market increased by approx. 5% over the same period of 9 months, significantly better than the broader market decline of ~12%.
• Engineering services business:
- Receiving several enquiries for higher HP and technology configurations.
- Signed an engineering services agreement worth INR 17.5 crore with Montra (TICMPL) for industrialization and supply of e-transmissions from CIL; the project is progressing well.
- Efforts to acquire additional engineering services business are currently in progress. We expect revenue contribution from this segment to grow year on year.
• Domestic AG 4WD Axle & Gears business update:
- The shift from 2WD to 4WD tractors has accelerated following the GST reduction, which has nearly equalized the pre-GST price of 2WD tractors with the post-GST price of 4WD models. The domestic 4WD axle market has shown strong revenue growth in the first nine months. In response, CIL is ramping up capacity to sustain the anticipated increase in demand in the coming years.
- During 9M FY26, the gears business remained subdued. While near-term growth is expected to be limited, efforts are underway to strengthen the business, supporting a gradual improvement over the coming quarters.
• Agri higher HP Transmission:
- Export market gradually recovering, which could positively impact transmission offtake for high HP tractors.
- A leading tractor OEM showcased a tractor equipped with Carraro’s higher HP driveline at Agritechnica in Hanover, Germany in Nov 2025.
• Export business Update: (Both direct & indirect):
- Exports delivered a strong growth of 29% year-on-year, led primarily by sustained momentum in construction equipment, particularly from TBH as well as export of BHL.
- While indirect exports of agricultural drivelines remained soft, resilient domestic demand helped maintain our overall volume trajectory.
• Capex:
- In 9M FY26, capex of INR 304 Mn deployed to support new telescopic handler’s axle production, high-performance new transmission range for agricultural applications, and to grant incremental capacity for FY26 sales.
Dr. Balaji Gopalan, Managing Director, Carraro India Limited said, 9M FY26 Performance Overview “For nine months FY26, Carraro India delivered a strong and encouraging performance. Revenue from operations grew 21% YoY, supported by healthy momentum across both domestic and export markets.
Domestic revenues increased 17% Year on Year, led by robust demand for 4WD axles in the agriculture segment, while exports grew 29% Year on Year, driven by higher offtake of Tele Boom Handler (TBH) axles.
In line with our guidance, we continued to deliver strong volumes, reinforcing our confidence in the sustainability of our operating performance. Profitability improved meaningfully, with EBITDA up 28% YoY, supported by operating leverage, disciplined cost management and execution efficiencies, even as product mix remained dynamic across quarters.
Our engineering services business gained further traction, with revenues of INR 50 million in Q3 FY26 and INR 100 million in 9M FY26, supported by steady customer enquiries and progress in key development programmes, including e-transmissions for electric agricultural tractors, CVT pilot units, and new prototype development.
With positive off-highway market sentiment and strong execution momentum, we remain confident of scaling Carraro India beyond our earlier guidance in revenues by FY30, surpassing our earlier ambition, while continuing to focus on disciplined execution and value-driven growth.
On the manufacturing front, we strengthened capability through key equipment additions to improve throughput, flexibility and quality. Importantly, the Board has approved a capex outlay of INR 623 million to expand axle capacity from 1,15,000 to up to 1,54,160, to be completed over the next 18 months, funded through a mix of internal accruals and debt. This expansion is aligned with our strong demand outlook, with the plant currently operating at over 90% utilization.
We also inaugurated our first Authorized Service Centre in Faridabad and remain on track to establish four centers across India in 2026, strengthening our aftermarket and customer support ecosystem.
Carraro India is not just performing – it is transforming, innovating and leading across markets and technologies.”
