Carraro India Q2 FY27 Results (NSE: CARRARO)
Signal: Growth reaccelerated
The read
The trajectory is shifting toward domestic-led volume growth: Q2FY27 total income rose 19% YoY to ₹7,058 million and agricultural equipment revenue rose 29% to ₹3,300 million, but EBITDA margin fell 80bps YoY to 9.2% because cost pass-through is lagging; margin recovery therefore remains the key watchpoint despite capacity expansion and a stronger domestic pipeline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹705.8 Cr | 19% | N/A |
| Net profit | ₹35.1 Cr | 11% | |
| EBIT margin | 9.2% |
P&L walk
Q2FY27 total income rose 19% YoY to ₹7,058 million and EBITDA rose 10% to ₹652 million, but EBITDA margin contracted 80bps to 9.2% as higher raw-material, energy, transportation and conversion costs were not yet fully recovered; PAT increased 11% to ₹351 million.
Segments
Agricultural Equipment was the main disclosed growth driver at ₹3,300 million, up 29% YoY, while Construction Equipment contributed ₹2,979 million, up 12%; domestic revenue rose 33% to ₹4,859 million as exports declined 4% to ₹2,106 million.
Key positives
- Domestic revenue increased 33% YoY to ₹4,859 million, materially outpacing total operating revenue growth of 19%, led by agricultural 4WD axles and construction equipment demand.
- Agricultural Equipment revenue increased 29% YoY to ₹3,300 million, and the company is ramping capacity for demand that it says is outpacing the overall tractor industry.
- Construction pipeline includes two Tele-boom Handler programmes in series production and another 4–5 programmes in field or prototype testing; the filing also reports a prototype order for Montra Electric's e-transmission engineering project.
- H1FY27 capex of ₹204 million commissioned a side-drive sub-assembly line and backlash machine, while construction began on a new paint-shop building to expand capacity.
Key concerns
- EBITDA margin declined 80bps YoY to 9.2% despite 19% total-income growth, with management citing higher raw-material, energy, transportation and conversion costs.
- Export revenue declined 4% YoY to ₹2,106 million, and higher-horsepower agricultural transmission offtake remains temporarily affected by weak export markets.
- Management expects margin recovery to be gradual because customer cost recovery involves a time lag; H1FY27 EBITDA margin was 9.7% versus 10.4% in H1FY26.
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