Carraro India Limited — Q4 FY26
Carraro India delivered a strong FY26 with revenue up 25% YoY to ₹2,255 crore, EBITDA up 33% YoY to ₹247.5 crore, and PAT up 48% YoY to ₹136 crore.
bullish
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
65%Questions answered3Evaded / deflected10Questions audited
Partial answer
High priority
Exports outlook and revenue from major global OEM for PBH and BH in FY26 and FY27.
Asked by Ragu Nandan NL, Noama Research
Management gave qualitative outlook but did not provide the requested FY26 revenue figure for the OEM.
no specific revenue figure given for FY26vague future guidance
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Question
Can you please indicate the exports outlook... In FI26 there are supplies to major global OEM. How much was the PBH and BH revenue to this OEM for FI26 and how do you see the expectation for FI27.
Ashok (management)
When we talk about the export market... the guidance remains same level... on the TBH we mentioned flat in the next 2 to 3 years... maybe by 29 we will have that 30 million revenue from the PBH business...
Answered
Medium priority
Reason for raw material cost increase in Q4 and pass-through lag.
Asked by Ragu Nandan NL, Noama Research
Management directly attributed the increase to product mix and stated the typical pass-through lag is 3 months.
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Question
There is some increase in raw material as a percentage of revenue... is this due to commodity inflation, higher freight cost on imports or product mix... how much lag is there in pass through of commodity inflation to customers?
David (management)
The major driver of that increment of the material percentage on total sales is actually the adverse mix that we have faced during the quarter... usually as majority of our agreements with customer foresee an adjustment over a period of 3 months.
Evasive
High priority
Growth outlook for FY27 and margin expansion range.
Asked by Ragu Nandan NL, Noama Research
Management acknowledged the prior guidance but refused to commit, citing volatility and speculation.
no commitment to guidancespeculative range given
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Question
Can you indicate for SI27 how do you see the growth outlook... would you maintain that range of 8 to 12% growth for revenue and how do you see the margin expansion?
Balaji (management)
We in normal condition... reinforces our earlier guidance of 8 to 12%... but in current situation it is going to be a speculation... 8 to 12 can become probably 4 to 8 but these are all speculation.
Evasive
High priority
Margin improvement trajectory and ability to achieve 100 bps annual improvement.
Asked by Sonel Gupta, HSBC Asset Management India
Management avoided reaffirming the 100 bps annual margin improvement target, citing uncertainty.
no commitment to 100 bps improvementuncertainty emphasized
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Question
Last year you talked about improving margins by 100 basis points every year... you sort of refrained from saying that... just wanted to understand the push and pulls and in what scenarios can you improve by 100 basis points?
Balaji (management)
When it comes to questions like the EBITDA guidance in a situation like this... I feel a little uncomfortable to give any number... we reach 10.8 we will move upward... whether we reach 11.5 11.7 11.2 that is again dependent on the revenue...
Answered
Medium priority
Size of domestic four-wheel drive tractor market and outsourcing share.
Asked by Sonel Gupta, HSBC Asset Management India
Management provided specific market share percentages and outsourcing split.
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Question
Could you tell us what is the size of the market? I understand now it's like 20% of the domestic industry... what sort of growth have we seen and how much outsourcing is there?
Ashok (management)
This year we have closed almost by 24% as a four-wheel drive market above 40 HP... it is 60-65% is outsource and 30-35% is with OEMs today.
Answered
Medium priority
Incentives for four-wheel drive adoption and growth outlook.
Asked by Ashok Sha, Aklavia Invesco Family Office
Management explained the indirect incentives (GST cut) and provided a positive outlook without specific numbers.
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Question
Currently there is no incentive to increase or incentivize four-wheel drive. So how we would be able to grow over next few years and what would be our size over next two to three years?
Balaji (management)
The government indirectly has given incentives... GST reduction... the differential between the cost of a two-wheel drive and a four-wheel drive has now almost vanished... we expect that it will continue.
Answered
Medium priority
FY27 capex plan and range.
Asked by Ragu Nandan NL, Noama Research
Management confirmed the capex range and specified it is closer to 130 crores.
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Question
On FI27 KEX can you indicate how much is the plan? Would it be in that range of 130 to 140 crores?
Balaji (management)
We confirmed that that amount more on 130 than 140 but we will be in that range as of now everything is confirmed.
Answered
Medium priority
Breakdown of other income: export incentives portion.
Asked by Ragu Nandan NL, Noama Research
Management provided a clear breakdown of other income into provision reversal and export incentives.
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Question
Other income in FI26 was about 285 million. How much was export incentive within that?
David (management)
Out of the 285 rightly 83 were a provision that we reversed. So out of the 200 which are remaining more or less 75% is export incentives. So roughly 150.
Partial answer
Low priority
Export geography mix.
Asked by Ragu Nandan NL, Noama Research
Management gave approximate percentages but noted the data may be misleading due to indirect shipments.
numbers are rough estimatesacknowledged complexity
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Question
Can you broadly indicate the geography mix like US, Europe, UK, China, Latam?
David (management)
Europe remains our main market... Turkey has become more relevant... Latin America is another 10%... US 9 to 10%... Europe represent 50% or less... China another 8 to 10%.
Evasive
Medium priority
Contribution to largest domestic OEM's new transmission platform and shift to outsourcing.
Asked by Mustafa Arif, Nine Reverse Capital
Management did not address the specific OEM or contribution, instead gave a general capability statement.
refused to comment on specific OEMgeneric response
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Question
The largest domestic OEM spoke about their new transmission platform... how what has been our contribution over there and is this a shift from in-house to outsourced model?
Ashok (management)
It's very difficult to comment on the ambiguous question because you have referred an unknown OEM... from Caro point of view we can say that today we produce up to 150 HP range of transmissions...
Answered
Medium priority
Clarification on gross margin decline: product mix within agri or between agri and CE.
Asked by Mustafa Arif, Nine Reverse Capital
Management clarified the mix was within agriculture range and explained the trade-off for supply continuity.
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Question
Could you give a little bit more color on the gross margin decline... do you mean product mix within your configurations or between agri and construction equipment?
David (management)
It is between our range of products our range of axles and mostly if we refer to agriculture range... we had to compromise a little bit on cost efficiency to maintain continuity of supply.
Declined
Low priority
Absolute sales figure of four-wheel drive for Q4 and full year.
Asked by Shirram, Individual Investor
Management explicitly declined to share absolute sales figures, citing policy not to give breakup.
refused to provide absolute numbersonly gave growth percentage
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Question
Can you please share the absolute sales figure of four-wheel drive for the quarter and also for the year?
Ashok (management)
It's very difficult in terms of informing because we have a mix of the turnover... we don't give the breakup as a guidance... our revenue has also grown by those 30%...