Whalesbook
Carraro India Limited reported strong unaudited results for Q2 and H1 FY26. Total income grew 18% to Rs 1,093 crore in H1 FY26, with Profit After Tax (PAT) rising 22% to Rs 60.8 crore. Q2 FY26 saw a 33% YoY income surge and a 44% PAT jump to Rs 31.7 crore. Growth was driven by construction equipment and strong export momentum, particularly in electric powertrain development with a new contract for e-transmission. The stock has seen over 100% multibagger returns from its 52-week low.
Carraro India Limited announced robust unaudited consolidated financial results for the second quarter (Q2) and first half (H1) of Fiscal Year 2026 (FY26). The company reported that its total income for H1 FY26 reached Rs 1,093 crore, an 18% year-over-year (YoY) increase from Rs 922.7 crore in the previous year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), including other income, grew by 13% to Rs 114.1 crore. Profit After Tax (PAT) saw a significant 22% rise, reaching Rs 60.8 crore.
The second quarter of FY26 was particularly strong, with total income surging 33% YoY to Rs 593.1 crore and PAT climbing an impressive 44% to Rs 31.7 crore.
Segmental growth was led by construction equipment, which rose 35% YoY to Rs 484.3 crore in H1 FY26. This surge was fueled by strong demand for tele-boom handlers (TBH) and backhoe loaders (BHL). Exports also showed robust performance, soaring 31% to Rs 411.3 crore, driven by high demand from China, Africa, the Middle East, and Latin America. Domestic sales increased by 11% to Rs 667.9 crore, supported by rising adoption of 4WD tractors post-GST rationalisation.
Dr. Balaji Gopalan, Managing Director, stated, “Revenue grew 18% on strong volumes across markets. Exports rose 31%, 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 strategic developments include a Rs 17.5 crore engineering services contract with Montra Electric for e-transmission development, marking Carraro India's entry into electric powertrains. The ramp-up of TBH axle production for a global Original Equipment Manufacturer (OEM) progressed well. Capital expenditure (capex) of Rs 21.1 crore in H1 FY26 bolstered capacity for high-horsepower transmissions and telescopic handlers.
Despite an approximate 9% YoY decline in the domestic BHL market due to monsoon delays and BS-V transition, the company remains optimistic due to strong export performance and new project wins, ensuring healthy future business visibility. Innovation remains a focus, with six prototypes developed, three in production, and pilot CVT units completed.
With a solid order pipeline, focus on EV technology, and supportive government policies, Carraro India is well-positioned for continued growth in global off-highway demand. The stock price has already delivered over 100% multibagger returns from its 52-week low.
Impact
This news is highly positive for Carraro India Limited's stock, signaling strong operational performance and strategic expansion into the EV sector. It indicates robust demand in the off-highway vehicle segment and strong international market presence. The EV development could open significant future growth avenues. For the broader Indian stock market, it reflects positively on the auto ancillary and industrial goods sectors, demonstrating resilience and innovation.
Rating: 8/10
Definitions:
Unaudited Consolidated Results: Financial statements prepared by a company and its subsidiaries that have not been formally audited by external auditors but provide a snapshot of financial performance.
FY26: Fiscal Year 2025-2026.
YoY: Year-over-Year, comparing a period with the same period in the previous year.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance.
PAT: Profit After Tax, the net profit a company has earned after deducting all expenses, including taxes.
Tier-I Supplier: A primary supplier that works directly with a vehicle manufacturer, often responsible for critical components.
Off-highway Vehicles: Vehicles not designed for use on public roads, such as construction equipment, agricultural machinery, and industrial vehicles.
Axles, Transmissions, Driveline Systems: Key components of a vehicle that transmit power from the engine to the wheels.
Construction Equipment: Machinery used in construction, such as excavators, bulldozers, and loaders.
Tele-boom Handlers (TBH): Versatile lifting machines used in construction and industry.
Backhoe Loaders (BHL): A type of construction equipment that combines a tractor with a loader and a backhoe.
GST: Goods and Services Tax, an indirect tax levied on the supply of goods and services in India.
4WD Tractor: A tractor with four-wheel drive, providing better traction.
Monsoon Delays: Delays in construction or agricultural activities due to heavy rains during the monsoon season.
BS-V Transition: Refers to the transition to Bharat Stage V emission standards for vehicles. (Note: Current Indian standards are BS-VI, this may refer to a specific market or older context).
OEM: Original Equipment Manufacturer.
Capex: Capital Expenditure, money spent by a company to acquire or upgrade physical assets.
High-HP Transmissions: Transmissions designed for high-horsepower engines.
Telescopic Handlers: Similar to tele-boom handlers, used for lifting and moving materials.
EV Technology: Electric Vehicle technology.
CVT Units: Continuously Variable Transmission units, a type of automatic transmission.
Multibagger Returns: Stock market term for a stock that gives returns of more than 100%.
52-week low: The lowest price a stock has traded at in the past 52 weeks.
