Mumbai, Nov. 9 -- Carraro India reported a 19 per cent year-on-year increase in total income to Rs 7.06 billion in Q2 FY27, compared with Rs 5.93 billion in the corresponding quarter of the previous year. EBITDA, including other income, rose 10 per cent to Rs 652 million, while profit after tax (PAT) increased 11 per cent to Rs 351 million.

For the half year ended 30 September 2026, total income grew 16 per cent to Rs 12.64 billion. EBITDA increased 8 per cent to Rs 1.23 billion, while PAT rose 9 per cent to Rs 665 million. However, EBITDA margin declined to 9.7 per cent from 10.4 per cent in H1 FY26, while PAT margin eased to 5.3 per cent from 5.6 per cent.

Domestic market drives growth

The company's operational revenue from agricultural equipment increased 29 per cent year-on-year to Rs 3.30 billion in Q2 FY27. Construction equipment revenue rose 12 per cent to Rs 2.98 billion, while revenue from other segments grew 9 per cent to Rs 686 million.

Domestic revenue increased 33 per cent to Rs 4.86 billion during the quarter. Export revenue, however, declined 4 per cent to Rs 2.11 billion. For H1 FY27, domestic revenue grew 30 per cent to Rs 8.65 billion, while exports fell 9 per cent to Rs 3.76 billion.

The company attributed domestic growth largely to demand for agricultural four-wheel-drive (4WD) axles and construction equipment.

Business and capacity expansion

In construction equipment, Carraro India continued to ramp up its new tele-boom handler (TBH) axle range for an international original equipment manufacturer (OEM). Two customer programmes are in series production, while another four to five programmes are undergoing field or prototype testing. The company also expects new domestic TBH driveline projects to strengthen its position in the segment.

The domestic backhoe loader market recorded encouraging growth, with festive-season demand supporting sales. In engineering services, the e-transmission project with Montra Electric progressed with a prototype order received for field validation. The company also secured another engineering services assignment from a customer in western India.

Demand for domestic agricultural 4WD axles continued to outperform the overall tractor industry. Carraro India is expanding capacity to meet anticipated demand. Its spare parts business also recorded growth during the first half, supported by greater penetration of its drivelines and an expanding aftermarket distribution network.

During H1 FY27, the company incurred capital expenditure of Rs 204 million. Construction of a new paint-shop building commenced, while a side-drive sub-assembly line and a backlash machine were commissioned to enhance portal axle and differential-support capacity.

Focus on cost recovery and margins

Commenting on the results, Dr Balaji Gopalan, Managing Director, Carraro India, said the company had recorded healthy growth despite global market uncertainties, with domestic revenues increasing 30 per cent year-on-year in H1 FY27.

He noted that profitability improved in absolute terms, although margins remained under pressure from higher raw material, energy, transportation and conversion costs. The company is working to recover these additional costs from customers, alongside initiatives to improve productivity and operational efficiencies.

Gopalan added that the shift towards 4WD tractors was creating sustained growth opportunities, with capacity expansion aligned to anticipated demand. In construction equipment, TBH axle programmes were progressing, while several additional projects were under prototype and field validation.

The company also developed seven prototypes during H1 FY27, one of which progressed to production. Its higher-horsepower transmission programmes for domestic OEMs are undergoing field validation, while export markets continue to face subdued demand.

Carraro India said its revenue performance remained broadly aligned with its FY27 growth outlook. It expects margin recovery to be gradual, supported by higher volumes, cost recovery and operational efficiencies.

Published by HT Digital Content Services with permission from Construction World.