Carraro India Posts 58% Profit Growth; Pune-Based Auto Ancillary Stock Seen as Strong 24-Month Bet

Pune: Amid continued market volatility, Carraro India Ltd., the Indian subsidiary of Italy’s renowned Carraro Group, has emerged as a strong contender in the auto ancillary space after reporting a 58% year-on-year increase in net profit. Market analysts believe the Pune-based small-cap company offers significant long-term growth potential over the next 24 months.

Listed on the BSE under Code: 544320, Carraro India manufactures axles, transmission systems, gears, and driveline solutions for agricultural and construction equipment. The company is considered a leading Tier-1 supplier and commands more than 60% market share in India’s non-captive construction vehicle transmission segment.

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For the financial year ended March 2026, the company reported a 25% rise in revenue to ₹2,256 crore, while net profit surged 58% to ₹140 crore. In the March 2026 quarter alone, revenue increased 37% year-on-year to ₹607 crore, and quarterly net profit jumped 76% to ₹42 crore.

Carraro India currently has a market capitalization of approximately ₹3,233 crore and is classified as a small-cap company. The stock is trading around ₹569, compared to its 52-week range of ₹405–₹688.

The company operates two manufacturing facilities in Pune, Maharashtra, producing axles, transmissions, and gears. It also runs a research and development centre in India that collaborates with Carraro’s global R&D network. During the first half of FY2026, the company developed six new prototypes, three of which have already been commercialised.

Carraro India’s customer base includes leading manufacturers such as Mahindra, TAFE, Sonalika, Shaktiman, ACE, Volvo, Terex, and Bull. Around 64% of its revenue comes from the domestic market, while 36% is generated through exports to Africa, the Middle East, Latin America, China, and Europe.

Following its ₹1,250 crore IPO in December 2024, the company has accelerated capacity expansion. It has installed new sealed quench furnaces, commissioned an 800-pallet Mazak machining centre, and plans to invest approximately ₹130 crore in capital expenditure during FY2026-27 to support future growth.

Supported by strong financial performance, expanding production capabilities, healthy debt levels, and a growing presence in domestic and international markets, Carraro India is being closely watched by investors seeking opportunities in the auto ancillary sector.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Investors should consult a qualified financial advisor and conduct their own research before making any investment decisions.

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