Carraro India Expects Sales to Grow by 8–12% in FY26, Led by Strong Domestic Demand

Carraro India Limited, a tractor and construction equipment components manufacturer, expects its revenue to grow by 8–12% in FY26, underpinned by robust domestic demand for 4WD vehicles and tractors, and the ramp-up of its newly acquired tele-boom handler business. While the export outlook remains uncertain in the near term, the company anticipates a recovery in the second half of the year, driven by new business wins.

“Supported by encouraging signs in the domestic market—such as stronger-than-expected adoption of 4WD vehicles and tractors—we are confident in achieving our FY26 revenue growth target,” said Balaji Gopalan, Managing Director of Carraro India. “On the export front, the market outlook remains uncertain for now, though we anticipate recovery to start in the second half of the year.”

The company also sees promising signs in its engineering services segment, which is witnessing a rise in enquiries for higher horsepower and advanced technology configurations. “Some of these are currently under active negotiation. We anticipate this business to contribute some revenue in FY26,” Gopalan said.

Additionally, the component maker is working with several OEMs on driveline solutions to remain future-ready, while closely tracking emerging technologies. “Our deep expertise in driveline systems enables us to respond swiftly to industry demands. By diversifying and localizing our supplier base, we aim to further optimize our cost structure and strengthen our margin profile. Supported by robust R&D and manufacturing capabilities, we remain focused on achieving our medium-term goal of reaching mid-teen EBITDA margins,” he said.

FY25 Performance

Carraro India concluded FY25 on a positive note, meeting its topline and EBITDA guidance despite challenging export markets. While overall income at Rs 1,823.4 crore was flat compared to the previous year, EBITDA grew by 24% YoY to Rs 186.4 crore, supported by a better product mix, increased localization, and tighter cost control. EBITDA margin improved by 192 basis points to 10.2%, above the 10%+ guidance. Its net profit rose 41% year-on-year to Rs 88 crore, with the PAT margin climbing to 4.8% from 3.5% a year earlier.

In FY25, the company’s agricultural equipment sales rose by 2% to Rs 856.5 crore, while construction equipment saw a 3% increase to Rs 749.1 crore. Domestic sales rose by 6% to Rs 1,215.5 crore, even as export revenue slipped 7% to Rs 592.1 crore.

The domestic market remained the key growth driver, with revenue from locally sold products recording a robust double-digit increase, largely due to continued demand and the shift toward 4WD technology. “Overall revenue growth was achieved despite weak export markets. We expect continued growth in the domestic market, excluding the indirect exports segment. We also foresee growth in our export segment, driven by new business acquisition, despite the persistent uncertainty at the global level,” Gopalan said.

In FY25, the company added six new customers, including two in the last quarter, and developed nine prototypes, five of which moved into production. “While revenue conversion from these efforts takes time, this is primarily part of our market seeding strategy,” he said.

Carraro India is a technology-driven Tier-I supplier of engineering products and solutions for OEMs in the agricultural and construction equipment sectors. It is part of Italy’s Carraro Group, which designs, manufactures, and sells transmission systems (axles, transmissions, and drives) globally.

The company specializes in axles, transmission systems, and gears, serving a range of applications including tractors, backhoe loaders, telehandlers, cranes, forklifts, and aerial working platforms. Beyond its core offerings, Carraro India also produces gears, shafts, and ring gears for industrial and automotive use.