Carraro India Q1 Profit Rises 8%, Revenue Up at Rs 558.7 Cr

Mumbai: Auto components and transmission system solutions provider Carraro India Ltd on Thursday reported an 8 per cent increase in Profit After Tax (PAT) to Rs 31.4 crore in the June quarter of the current fiscal.

The Pune-based firm’s net profit in the first quarter of the preceding fiscal stood at Rs 29.1 crore, according to a statement.

Total income for the first quarter of FY27 rose 12 per cent year-on-year to Rs 558.7crore from nearly Rs 500 crore in the first quarter of FY26.

“Q1 FY27 revenue from operations increased by 10 per cent year-on-year to Rs 544.7 crore, supported by sustained momentum in the domestic business. Domestic revenue grew by around 26 per cent year-on-year, driven by robust demand for 4-wheel drive axles in the agricultural vehicle segment, despite uncertainty surrounding the monsoon outlook,” said Balaji Gopalan, Managing Director, Carraro India.

Export revenue declined by around 14 per cent year-on-year due to geopolitical disruptions and uneven demand across global markets, he said, adding that profitability improved in absolute terms, with Ebitda rising by around 6 per cent and PAT by nearly 8 per cent YoY.

Ebitda margins were affected by higher energy and raw material costs arising from geopolitical disruption, along with labour availability constraints. However, disciplined cost management and execution efficiencies helped contain the impact and sustain earnings growth, Gopalan added.

“The domestic agriculture business continues to benefit from the GST reforms, accelerating the shift towards 4WD tractors, with demand for our axles growing in line with expectations, and accordingly we are expanding capacity to support anticipated demand,” he said.

In the construction-equipment segment, according to him, the export programme for TBH axles continues to progress as planned. “We are also expanding our domestic TBH (tele boom handler) presence through new projects with Indian OEMs and the Indian operations of global OEMs,” he added.

Carraro’s BHL sales to Indian OEMs continued to outperform the broader market, the company said.

Moreover, the company’s engineering-services business gained further momentum during the quarter, he said.

According to Gopalan, the Montra Electric project is progressing well while discussions with another prospective customer are also advancing, supporting further growth in this business.

During the quarter under review, construction of the new paint-shop building commenced, while a side-drive sub-assembly line and a backlash machine were commissioned to enhance Portal axle capacity and increase differential-support capacity on the 4WD line. During FY26, the company deployed Rs 41.7 crore towards new telescopic-handler axle production, high-performance agricultural transmissions and capacity expansion, it said.

The company said its higher-HP transmission programmes reached an important milestone, with series production for a Turkish customer beginning in Q1 FY27 and added that the programme for an Indian customer is advancing as scheduled, with start of production targeted by FY28.

The gears business remained subdued during the quarter. However, focused initiatives are underway to strengthen the portfolio and support a gradual recovery over the coming quarters, it said.

“Global market conditions remain uncertain due to geopolitical developments and mixed demand trends. Nevertheless, strong domestic momentum, recovering supply chains, the ramp-up of new programmes and ongoing capacity additions position us well for the year ahead.

“We remain focused on delivering positive growth in FY27. Better cost absorption, improved operating efficiencies, higher utilisation levels and continued cost discipline are expected to support margin improvement as we work towards our medium-term revenue and profitability objectives,” Gopalan added.

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