Carraro India Limited is expanding its axle manufacturing capacity from 115,000 units to up to 154,160 units over the next 18 months, following a Board-approved capital outlay of INR 623 million. The plant is currently operating at over 90 percent utilisation, and the expansion is aligned with demand from agricultural and construction equipment segments.
“The Board has approved a capex outlay of INR 623 million to expand axle capacity from 1,15,000 to up to 1,54,160, to be completed over the next 18 months, funded through a mix of internal accruals and debt. This expansion is aligned with our strong demand outlook, with the plant currently operating at over 90% utilization,” said Balaji Gopalan, Managing Director.
During the first nine months of FY26, the company deployed INR 304 million in capital expenditure to support new telescopic handler axle production, a high-performance transmission range for agricultural applications, and incremental capacity for FY26 sales.
In addition to the current axle expansion, the company outlined manufacturing headroom at its Ranjangaon facilities. The driveline plant and gear plant have identified expansion initiatives, with approximately 38,000 square metres of free space available for potential future expansion. As of FY25, capacity utilisation stood at 75.06 percent for drivelines and 75.77 percent for gears, indicating available headroom in certain product lines.
The facilities include phased infrastructure such as warehouses of approximately 12,870 square metres and 5,100 square metres, a portal assembly line of about 1,800 square metres, a manufacturing shop of 1,486 square metres and a heat treatment shop of 1,579 square metres, supporting casting, machining, assembly and heat treatment operations.
Revenue from operations increased 21 percent year on year to INR 16,488 million in 9M FY26, supported by growth across domestic and export markets. Domestic revenue rose 17 percent year on year, led by demand for four-wheel drive (4WD) axles in the agriculture segment, while exports grew 29 percent year on year, driven by higher offtake of Tele Boom Handler (TBH) axles and construction equipment.
“For nine months FY26, Carraro India delivered a strong and encouraging performance. Revenue from operations grew 21% YoY, supported by healthy momentum across both domestic and export markets. Domestic revenues increased 17% Year on Year, led by robust demand for 4WD axles in the agriculture segment, while exports grew 29% Year on Year, driven by higher offtake of Tele Boom Handler (TBH) axles,” Gopalan said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 28 percent year on year to INR 1,765 million in 9M FY26, with EBITDA margin at 10.6 percent. Profit after tax increased 38 percent year on year to INR 889 million.
The engineering services business reported revenue of INR 100 million in 9M FY26 and INR 50 million in Q3 FY26. The company signed an engineering services agreement worth INR 175 million with Montra (TICMPL) for the industrialisation and supply of e-transmissions. Ongoing programmes include development of e-transmissions for electric agricultural tractors, continuously variable transmission pilot units and new prototype development.
“On the manufacturing front, we strengthened capability through key equipment additions to improve throughput, flexibility and quality,” Gopalan said.
Carraro India also inaugurated its first authorised service centre in Faridabad and plans to establish four centres across India in 2026 to expand its aftermarket network.
Carraro India Limited manufactures axles, transmission systems, gears and related components for agricultural and construction equipment and operates two manufacturing facilities and one research and development centre in Pune.
