VST Tillers Tractors Ltd: 95% Profit Jump, 5 New Tractor Models, and a 50-Year Grip on Power Tillers

1. At a Glance

VST Tillers Tractors (VSTT) is India’s largest power tiller manufacturer and a compact tractor player with a serious export game. Q1 FY26 profit jumped 95% YoY, riding on a 48% revenue surge and a ₹23.79 Cr fair value gain. The company just launched five new fuel-efficient tractor models under the FENTM series — because apparently 2025 is the year to mix farming with marketing pizzazz. Debt? Almost nil. Margins? Steady. ROE? Meh. Valuation? At 35.8x, it’s pricing in more than just rain-fed optimism.

2. Introduction

Founded in 1967 as a joint venture with Mitsubishi Heavy Industries, VSTT started with a simple mission: make farming less back-breaking. Today, they sell under VST Shakti (tillers) and FIELDTRAC (tractors), the latter meeting strict EU standards. The Mitsubishi partnership is long over, but the VST family still owns 51% of the company.

Over the past decade, they’ve transformed from a sleepy domestic player into an exporter with a tech focus. But this isn’t a fairy tale — revenue CAGR over the last 3 years is just 5%, ROE is under 10%, and working capital days have exploded to 254. Still, the stock’s up 25% CAGR over 5 years, proving that farmers aren’t the only ones reaping.

3. Business Model (WTF Do They Even Do?)

Core Lines: