Sharp Reversal: Carraro India shares fall 18% from day’s high after cautious management outlook

Sharp Reversal: Carraro India shares fall 18% from day's high after cautious management outlook


Shares of Carraro India Ltd. reversed as much as 18% from the highs of the day on Wednesday, May 27, after the company’s management issued a cautious outlook for the road ahead, after a strong fourth quarter performance.

The stock, which was trading with gains of as high as 10% earlier in the day on Wednesday, not only reversed all of those gains, but are now trading with losses of 10%.

In an interaction with CNBC-TV18, the management of Carraro India said that they do not expect growth in financial year 2027, to be as high as the 25% that it closed financial year 2026 with.

Carraro India’s Managing Director Balaji Gopalan said that he expects geopolitical tensions to have an impact for the next one to two quarters and the supply pressure would have a near-term impact on the company.

Carraro India In Q4

The company reported strong growth in both its domestic business and exports. Its domestic business grew by 25% during the quarter, while exports were up 68% from last year.
In the fourth quarter, Carraro India’s revenue increased by 37% to ₹614 crore from ₹448 crore last year. Its profit after tax increased 48% to ₹131 crore from ₹88 crore in the previous year.

The company said its profitability improved through operating leverage, disciplined cost management and execution efficiencies.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 45% to ₹71 crore from ₹49 crore in the previous year, while margins expanded to 11.6% from 10.9% in the year-ago period.

The company’s agri vehicles segment’s revenue increased by 37%, while that of construction vehicles increased by 36%. Carraro India said its domestic agriculture business remained strong, led by rising 4WD tractor penetration. Its construction equipment exports continued to witness healthy traction as well.

The company’s engineering services and e-transmission business is also gaining traction.

It said its higher HP tractor export market is gradually recovering.

Shares of Carraro India are trading 7% higher on Wednesday at ₹651. The stock is up 25% so far this year, but remains below its issue price of ₹704.

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