VST Tillers Tractors Ltd., a leading manufacturer of agricultural machinery in India, reported consolidated revenue from operations of ₹2.82 billion for the quarter ended June 2025. The company also posted a net profit of ₹442.2 million, reflecting a strong performance driven by improved product mix, stable input costs, and sustained demand for compact tractors and power tillers.
The results underscore VST’s resilience in a competitive market and its ability to maintain profitability despite seasonal fluctuations and uneven monsoon patterns across key agricultural regions.
Key Performance Indicators for Q1 FY26
- Revenue from operations reached ₹2.82 billion, up 14.6 percent year-on-year
- Net profit stood at ₹442.2 million, compared to ₹330.1 million in the same quarter last year
- Operating margin improved to 18.2 percent, supported by cost optimization and better realization
- Earnings per share rose to ₹42.6 from ₹31.9 year-on-year
- No exceptional items were reported during the quarter
Business Segment Overview
1. Power Tillers
- Sales volume increased 11 percent year-on-year, driven by demand in eastern and southern India
- New models with fuel-efficient engines and ergonomic designs gained traction among small farmers
- Government subsidy programs in states like Odisha and Assam supported retail sales
2. Tractors
- Compact and mid-range tractors saw steady demand from horticulture and plantation segments
- Export orders to Southeast Asia and Africa contributed 9 percent of segment revenue
- VST’s electric tractor prototype is undergoing field trials, with commercial launch expected in FY27
3. Spares and Services
- Aftermarket revenue grew 18 percent year-on-year, aided by digital service platforms and dealer expansion
- The company launched a mobile app for service scheduling and warranty tracking
- Spare parts availability was enhanced through regional distribution hubs
Operational Efficiency and Financial Discipline
- Raw material costs remained stable due to long-term procurement contracts
- Employee costs were contained through productivity-linked incentives
- Interest expenses were minimal, reflecting the company’s debt-free status
- Depreciation and tax outflows were in line with historical trends
Strategic Initiatives and Market Position
- VST continues to invest in R&D for sustainable and smart farming solutions
- The company is expanding its dealer network in underserved regions of central India
- Digital transformation initiatives include CRM upgrades and predictive maintenance tools
- VST maintains a strong brand recall among small and marginal farmers
Investor Sentiment and Stock Movement
- VST Tillers Tractors’ stock rose 1.2 percent post-results, trading at ₹4,454.6 on the BSE
- The company has delivered a 6.3 percent return over the past three months and 27.4 percent over the past year
- Institutional holding remains stable, with recent accumulation by domestic mutual funds
- The stock trades at a P/E ratio of 34.8, reflecting investor confidence in earnings growth
Outlook for FY26
VST Tillers Tractors is well-positioned to capitalize on rising mechanization in Indian agriculture, especially in regions with fragmented land holdings. The company expects continued momentum in power tiller sales, supported by state-level subsidy programs and favorable rural sentiment.
With a strong balance sheet, expanding product portfolio, and focus on innovation, VST aims to sustain double-digit growth and enhance shareholder value through FY26.
Sources: Financial Express, Business Standard, 5paisa.
