Carraro India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Carraro India Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Carraro India reported FY26 revenue growth of 25% year-on-year to over Rs 2,255 crore, with EBITDA up 33% to Rs 2,475 million and PAT up 48% to Rs 1,306 million. Management attributed the growth to strong domestic agriculture driveline demand, particularly four-wheel drive axles, and robust export momentum in construction equipment. For Q4 FY26, revenue grew 37% year-on-year to Rs 6,067 million with EBITDA margin improving to 11.6% from 10.9% a year earlier.
Numbers mentioned
Revenue from operations: over INR2,255 crores (FY26)
p. 3
“Revenue from operations grew by 25% year-on-year to over INR2,255 crores, supported by healthy growth across domestic and export markets.”
Balaji Gopalan, page 3 of the filed PDF · View the filing
EBITDA: INR2,475 million (FY26)
p. 4
“EBITDA increased by 33% year-on-year to INR2,475 million, while PAT grew by 48% yearon-year to INR1,306 million.”
Balaji Gopalan, page 4 of the filed PDF · View the filing
EBITDA margin: 10.8% (FY26)
p. 4
“EBITDA margins improved to 10.8% in FY ‘26 compared to 10.2% in FY ‘25, despite changes in product mix during the year.”
Balaji Gopalan, page 4 of the filed PDF · View the filing
Revenue from operations: INR6,067 million (Q4 FY26)
p. 6
“Starting with the Q4, revenues from operations for Q4 FY ‘26 stood at INR6,067 million, INR606 crores, representing a strong growth of 37% year-on-year.”
Davide Grossi, page 6 of the filed PDF · View the filing
EBITDA margin: 11.6% (Q4 FY26)
p. 6
“EBITDA for the quarter stood at INR710 million, reflecting a growth of 45% year-on-year, while EBITDA margin improved to 11.6% compared to 10.9% in Q4 FY ‘25.”
Davide Grossi, page 6 of the filed PDF · View the filing
Profit after tax: INR417 million (Q4 FY26)
p. 6
“Our profit after tax for the quarter increased by 76% year-on-year to INR417 million, with PAT margin improving to 6.8% versus 5.3% in the corresponding quarter last year.”
Davide Grossi, page 6 of the filed PDF · View the filing
Debt-to-equity: 0.27x (March 2026)
p. 7
“Debt-to-equity improved to 0.27x as of March 2026 compared to 0.42x in March 2025.”
Davide Grossi, page 7 of the filed PDF · View the filing
Return on capital employed: 29.2% (FY26)
p. 7
“Our return on capital employed improved to 29.2%, while return on equity increased to 25.5%.”
Davide Grossi, page 7 of the filed PDF · View the filing
Working capital days: 38 days (FY26)
p. 7
“Working capital days reduced to 38 days from 45 days in FY ‘25, reflecting tighter working capital management and operational discipline.”
Davide Grossi, page 7 of the filed PDF · View the filing
Final dividend: INR6.75 per equity share (FY26)
p. 7
“the Board of Directors has recommended a final dividend of INR6.75 per equity share for FY ‘26, resulting in a payout ratio of approximately 30%, subject to shareholder approval.”
Davide Grossi, page 7 of the filed PDF · View the filing
Raw material localization: approximately 78% (FY26)
p. 5
“Localization remains another important strategic focus area. Raw material localization stood at approximately 78% during FY ‘26 and we remain on track to increase this to nearly 86% to 88% over the next two to three years.”
Balaji Gopalan, page 5 of the filed PDF · View the filing
Capex deployed: approximately INR417 million (FY26)
p. 5
“During FY ‘26, we deployed capex approximately of INR417 million towards new telescopic handler axle production, high-performance transmission programs, incremental manufacturing capacity expansion.”
Balaji Gopalan, page 5 of the filed PDF · View the filing
Domestic revenue share: INR14,430 million, around 64% (FY26)
p. 7
“Geographically, our domestic revenue stood at INR14,430 million, contributing around 64% of our total revenue.”
Davide Grossi, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — INR3,500 crores to INR4,000 crores · FY30
stated as an aspiration by Balaji Gopalan
p. 6
“we remain confident of achieving revenues of around INR3,500 crores to INR4,000 crores by FY ‘30, exceeding our earlier target.”
Balaji Gopalan, page 6 of the filed PDF · View the filing
Revenue growth — 8% to 12%, possibly 4% to 8% · FY27
stated conditionally by Balaji Gopalan
p. 9
“8% to 12% can become probably 4% to 8%, but these are all speculation.”
Balaji Gopalan, page 9 of the filed PDF · View the filing
EBITDA margin — FY27
stated firmly by Balaji Gopalan
p. 10
“I would surely say that we reached 10.8%, we will move upward, we're not going to slide backward.”
Balaji Gopalan, page 10 of the filed PDF · View the filing
Capex — INR130 crores to INR140 crores · FY27
stated firmly by Davide Grossi
p. 13
“Yes, we confirm that amount, more on the INR130 crores than INR140 crores, but we will be in that range.”
Davide Grossi, page 13 of the filed PDF · View the filing
Turkey higher horsepower transmission SOP — FY27
stated firmly by Balaji Gopalan
p. 4
“We expect SOP, Start of Production, for the Turkey program during FY ‘27, while the Indian customer program is expected to enter production by FY ‘28.”
Balaji Gopalan, page 4 of the filed PDF · View the filing
Bull gears business nomination revenue — approximately INR150 million annually · starting FY28
stated firmly by Balaji Gopalan
p. 5
“we secured a business nomination for a major OEM for bull gears, valued at approximately INR150 million annually starting FY ‘28.”
Balaji Gopalan, page 5 of the filed PDF · View the filing
Raw material localization — nearly 86% to 88% · next two to three years
stated firmly by Balaji Gopalan
p. 5
“we remain on track to increase this to nearly 86% to 88% over the next two to three years.”
Balaji Gopalan, page 5 of the filed PDF · View the filing
Four-wheel drive tractor market share — almost 40% to 45% of the market · another three to five years
stated as an aspiration by Ashok Rai
p. 11
“we expect that another three year to five year, it should be almost 40% to 45% of the market.”
Ashok Rai, page 11 of the filed PDF · View the filing
TBH revenue from major global OEM — INR30 million revenue · by FY29
stated conditionally by Ashok Rai
p. 8
“maybe by ‘29 we will have that INR30 million revenue from the TBH business. So that is in track at the moment.”
Ashok Rai, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said agricultural exports remain uncertain with slight increase possible in the US, while construction equipment export order book is positive with visibility for the next six months.
Answered by Ashok Rai
Asked by Raghunandhan NL: What is the FY27 export outlook, and how much TBH/BHL revenue came from the major global OEM in FY26?
p. 8
“But when it comes to the construction segment, we are seeing the positive side of the order book. We are frequently getting additional orders for the subsequent quarter and the next, in the 6 months the visibility is there, we are getting the order for the export market.”
Ashok Rai, page 8 of the filed PDF · View the filing
Management attributed the increase mainly to adverse product mix rather than commodity or freight cost inflation, and said pass-through typically takes about 3 months.
Answered by Davide Grossi
Asked by Raghunandhan NL: What drove the Q4 raw material cost increase and what is the pass-through lag to customers?
p. 9
“So it's not a major issue in terms of increase of the material cost or transportation and so on as of now.”
Davide Grossi, page 9 of the filed PDF · View the filing
Management said the earlier 8-12% guidance still holds in normal conditions but current volatility could bring growth down to 4-8%, while affirming growth will remain positive.
Answered by Balaji Gopalan
Asked by Raghunandhan NL: Will FY27 revenue growth maintain the 8-12% guidance range and what margin expansion can be expected?
p. 9
“We are looking at a very strong demand that will come up. OEMs are all cautioning us to keep our capacities and supply chain intact.”
Balaji Gopalan, page 9 of the filed PDF · View the filing
Management declined to commit to a specific number given uncertainty but said margins would not decline from the 10.8% level reached.
Answered by Balaji Gopalan
Asked by Sonal Gupta: Will the company maintain its prior guidance of 100 basis points annual margin improvement?
p. 10
“nonetheless, I would surely say that we reached 10.8%, we will move upward, we're not going to slide backward.”
Balaji Gopalan, page 10 of the filed PDF · View the filing
Management estimated the four-wheel drive segment has grown to about 24% of the tractor market above 40HP, with roughly 60-65% outsourced to external players.
Answered by Ashok Rai
Asked by Sonal Gupta: What is the size of the domestic four-wheel drive tractor market and how much is outsourced versus done in-house by OEMs?
p. 12
“Just a guess, as I said, I don't have the formal data, but it is 60% to 65% is outsourced and 30% to 35% is with OEMs today.”
Ashok Rai, page 12 of the filed PDF · View the filing
Management said the decline was due to mix within the agriculture axle range, as they prioritized fulfilling higher demand for a certain axle category at the cost of efficiency.
Answered by Davide Grossi
Asked by Mustafa Arif: What explained the gross margin decline and was it due to product mix within configurations or between agri and construction segments?
p. 15
“this specific quarter we had a boost even that went even beyond what we were expecting of demand of a certain category of axles that we wanted to dispatch, we wanted to, you know, make the customer happy, but we have had to compromise a little bit on, let's say, the cost efficiency to maintain the, you know, the continuity of the supply.”
Davide Grossi, page 15 of the filed PDF · View the filing
Risks flagged
Geopolitical and macroeconomic volatility, particularly in West Asia, could impact energy prices and supply chains
p. 6
“However, we are closely monitoring the evolving macroeconomic and geopolitical situation, particularly developments in West Asia.”
Balaji Gopalan, page 6 of the filed PDF · View the filing
Sustained rise in energy prices or supply chain volatility could affect production and supply, especially in H1 FY27
p. 6
“Any sustained rise in energy prices or supply chain volatility could lead to some production and supply-related impact, especially in H1 FY ‘27 and potentially extend to H2 if the situation persists longer than anticipated.”
Balaji Gopalan, page 6 of the filed PDF · View the filing
Domestic construction equipment market softness due to slower infrastructure execution and project delays
p. 3
“On the construction equipment side, the domestic market remained relatively soft, with industry volumes declining by approximately 2% year-on-year due to slower infrastructure execution and delays in project activity during parts of the year.”
Balaji Gopalan, page 3 of the filed PDF · View the filing
Migrant labour shortages have increased labour costs
p. 10
“Even labour availability has become a problem. Migrant labour have all gone back, so the labour cost has also gone up.”
Balaji Gopalan, page 10 of the filed PDF · View the filing
Uncertainty over government infrastructure investment given fertilizer subsidy costs could affect domestic construction market recovery
p. 8
“So we have to see whether how much investment remains with the government after all these subsidies and the cost increase.”
Ashok Rai, page 8 of the filed PDF · View the filing
Turkey market showing stabilization or downturn after recent improvement
p. 8
“we were expecting that the Turkey market, which started showing some kind of improvement in the last six months, is again showing some kind of a stabilization or downturn.”
Ashok Rai, page 8 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.