Over 100% Returns From 52-Week Low: Carraro India Delivers Strong H1 FY26 with 18% Revenue Growth

Carraro India Limited, a leading Tier-I supplier of axles, transmissions, and driveline systems for off-highway vehicles, reported robust unaudited consolidated results for Q2 and H1 FY26, driven by strong export momentum and steady domestic demand.

H1 FY26 total income reached Rs 1,093 crore, up 18 per cent YoY from Rs 922.7 crore. EBITDA (including other income) grew 13 per cent to Rs 114.1 crore, while profit after Tax (PAT) rose 22 per cent to Rs 60.8 crore. Q2 FY26 was standout, with total income surging 33 per cent YoY to Rs 593.1 crore and PAT climbing 44 per cent to Rs 31.7 crore.

Construction equipment led segmental growth, rising 35 per cent YoY to Rs 484.3 crore in H1, fuelled by strong demand for tele-boom handlers (TBH) and backhoe loaders (BHL). Exports soared 31 per cent to Rs 411.3 crore, driven by robust offtake in China, Africa, the Middle East, and Latin America. Domestic sales increased 11 per cent to Rs 667.9 crore, supported by rising 4WD tractor adoption post-GST rationalisation.

Dr. Balaji Gopalan, Managing Director, stated, “Revenue grew 18 per cent on strong volumes across markets. Exports rose 31 per cent, led by TBH axles, while domestic 4WD demand remained resilient. Margins faced temporary pressure from product mix shifts, but our innovation and capacity expansion roadmap support sustained growth.”

Key highlights include a Rs 17.5 crore engineering services contract with Montra Electric for e-transmission development, signalling entry into electric powertrains. TBH axle ramp-up for a global OEM progressed well, while capex of Rs 21.1 crore in H1 bolstered capacity for high-HP transmissions and telescopic handlers.

Despite a ~9 per cent YoY decline in the domestic BHL market due to monsoon delays and BS-V transition, export strength and new project wins ensure healthy visibility. Innovation remains strong with six prototypes developed, three in production, and pilot CVT units completed.

With a solid order pipeline, EV technology focus, and supportive policies, Carraro India is well-positioned for continued growth in global off-highway demand.

The stock price has given over 100 per cent multibagger returns from its 52-week low.

Disclaimer: The article is for informational purposes only and not investment advice.