Carraro India Ltd(CARRARO)

NSE: CARRAROBSE: 544320

₹ 470.6-2.55%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 2,675 crNext results: 6 Nov 2026Website: www.carraroindia.comUpdated: 24 Oct 2026

About

Carraro India Ltd manufactures axles, transmission systems, gears, and gear shafts for agricultural tractors and construction vehicles, operating two manufacturing plants in Pune. The company reported revenue of Rs 2,255 Cr in FY26, a 25% YoY increase. It holds 100% market share in the non-captive agricultural tractor transmission segment (above 40 HP) and is Carraro Group's designated global centre of excellence for agricultural transmissions.^[1][2][3]

Products and market position

Carraro India holds 100% market share in the non-captive agricultural tractor transmission segment above 40 HP in India.^[1]
The company manufactures axles and transmission systems for agricultural tractors, and drivelines for construction vehicles including backhoe loaders, soil compactors, cranes, self-loading concrete mixers, and small motor graders.^[1]
Carraro supplies axles and transmissions to all 10 non-captive backhoe loader OEMs in India, representing 100% coverage of the non-captive BHL segment.^[4]
The engineering services business crossed Rs 100 million in FY26; the company also conducted pilot production of Continuously Variable Transmission (CVT) units.^[1]

Business mix

In Q1 FY27, domestic revenue was ~70% of total revenues (INR 3,795 million, +26% YoY); export revenue contributed ~30% (INR 1,652 million, -14% YoY).^[5]
Domestic agriculture revenue in Q1 FY27 was INR 2,135 million (+32% YoY); domestic construction equipment revenue was INR 1,393 million (+20% YoY).^[5]
In H1 FY26, construction vehicle revenue was INR 4,843 million (+35% YoY) and agricultural vehicle revenue was INR 4,760 million (+6% YoY).^[6]
Export mix was 36% of revenue in FY26; the long-term revenue mix target is ~65% domestic and 35% export.^[3][5]

Manufacturing operations and capacity

Both Pune manufacturing plants hold ISO 9001:2015 and ISO 14001:2015 certification; Plant 2 (Gears) also holds IATF 16949:2016 certification.^[1]
Axle volumes in FY26 were 1,17,898 units; transmission volumes were 37,605 units.^[5]
Plant 1 capacity utilisation was 79.78% in FY26; Plant 2 (Gears) utilisation was 75.95% in FY26.^[5]
The Board approved INR 623 million capex to expand axle capacity from 1,34,028 to 1,54,160 units over 18 months, to be funded via internal accruals and debt.^[4]
The company has one subsidiary, Carraro Technologies India Private Limited (CTIPL), which operates an engineering centre in Pune providing R&D and product development support.^[1]
As of 31 March 2026, the company employed approximately 1,800 people, comprising 306 employees and 1,335 workers.^[1]

Key operating metrics

Raw material localisation was 74.2% in Q1 FY27, down from 78.1% in FY26, due to increased imports to prevent production stoppages amid local supplier constraints; the medium-term target is 86-88%.^[5][1]
4WD tractor penetration above 40 HP reached ~24% in FY26, up from ~20-22% the prior year, driven partly by a GST reduction narrowing the 2WD/4WD price gap.^[3]
In Q1 FY27, Carraro's BHL driveline sales to Indian OEMs grew ~18% YoY, outperforming the overall BHL market growth of ~14% YoY.^[5]
The supplier base comprised 247 total suppliers (177 domestic) with a dual-sourcing strategy requiring a minimum of 2 suppliers per component.^[1]
Spares revenue was 3.5 - 4% of revenue as of Q3 FY26; the long-term target is 10% of India revenue.^[4]

Customers and distribution

Key customers are primarily India-based OEMs including large domestic OEMs and international OEMs with Indian subsidiaries; the top 10 customers have continuously engaged Carraro India for at least 15 years.^[1]
Teleboom handler (TBH) axles billed INR 87 Cr to a major international OEM (Caterpillar) in H1 FY26, with a quarterly run-rate of ~1,700 units.^[6]
Export markets include China, Africa, Middle East, and Latin America for construction equipment; CE exports grew 33% YoY in H1 FY26.^[6]

Expansion and capex

FY27 capex is confirmed at approximately INR 130 Cr, supporting capacity additions targeted to be linear and demand-parallel toward the INR 3,500 - 4,000 Cr revenue base by FY30.^[3][5]
Construction of a new paint shop facility commenced in Q1 FY27; a side-drive sub-assembly line and backlash machine for portal axle capacity were also commissioned in Q1 FY27.^[5]
TBH axle revenue from the major international OEM is expected to grow in EUR 10 million increments, reaching EUR 30 million by FY29.^[3]
A bull gear OEM nomination worth approximately Rs 15 Cr per annum is expected to contribute from FY27-28 onwards.^[1]

Recent developments

Serial production for a Turkish higher-HP tractor transmission customer (Carraro Tractors) commenced in Q1 FY27; SOP for the Indian higher-HP transmission programme is expected in FY27-28.^[5][1]
Carraro India signed a Rs 17.5 Cr engineering services agreement with Montra Electric for industrialisation and supply of e-transmissions for electric agricultural tractors; a prototype order for field validation was received.^[1]
Engineering services assignments worth approximately INR 33 million that were under discussion at Q1 FY27 quarter-end were completed in July 2026; discussions with another prospective customer are underway.^[5]
Export revenues declined to INR 1,652 million in Q1 FY27 (-14% YoY) due to geopolitical disruptions causing container and vessel shortages; management characterised this as a one-off, with recovery expected from Q2 FY27.^[5]

Market Cap

₹2,675 Cr

High / Low

₹667 / 417

Stock P/E

20.1

Price / Book

4.7

Book Value

₹99

EPS

₹23.0

No. of Shares

5.69 Cr

ROCE

29.5%

ROE

25.5%

OPM

8.8%

Debt / Equity

0.25

Sales

₹2,255 Cr

Net Profit

₹131 Cr

Promoter holding

68.8%

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