1. At a Glance
Indo Farm Equipment Ltd is that guy in the tractor-crane party who brought both desi and imported drinks—but forgot to chill them properly.
Market cap stands at ₹816 Cr, the stock is trading around ₹170, down ~23% in 3 months, and investors are clearly not amused. Despite reporting ₹105.9 Cr Q3 FY26 revenue and ₹5.56 Cr PAT (up 39.7% YoY), the stock still wears a 27.7x P/E like it’s Escorts Kubota’s distant cousin. Spoiler: it isn’t.
ROCE sits at 7.74%, ROE at 5.56%, and working capital days have ballooned to 184 days—basically, money is stuck in tractors taking a long scenic route. Debt is ₹180 Cr, manageable but not tiny. Promoters hold a solid 69.8%, no pledging, which is refreshing in smallcap land.
The headline?
Profits are growing, balance sheet is healing, but returns are still meh.
So… turnaround brewing or just post-IPO sugar rush? Let’s dig.
2. Introduction
Indo Farm Equipment is a classic Indian manufacturing story: founded in 1994, bootstrapped growth, tractors for farmers, cranes for contractors, and now—post IPO—trying to convince Dalal Street that it deserves a premium multiple.
The company operates under Indo Farm and Indo Power, selling tractors from 16 HP to 110 HP, pick-and-carry cranes up to 30 tons, plus harvesters and rotavators. Sounds solid, right?
But here’s the catch:
This is not a volume monster.
This is not a pricing king.
This is a capital-heavy, working-capital-hungry, slow churn business.
Yet Q3 FY26 numbers surprised positively. PAT jumped nearly 40% YoY, margins held up, interest costs fell, and IPO money started cleaning up the
balance sheet. Naturally, the question arises:
👉 Is this the start of an earnings re-rating cycle?
👉 Or just a good quarter doing overtime on Excel sheets?
Let’s proceed with forensic gloves on.
3. Business Model – WTF Do They Even Do?
Think of Indo Farm as operating at the intersection of Indian agriculture + infra jugaad.
Tractors (65.46% of revenue)
- Entry-level to mid-HP tractors
- Focused on value-conscious farmers
- Competes with giants who sneeze bigger volumes than Indo Farm’s annual output
Pick & Carry Cranes (34.25%)
- 9–30 ton cranes
- Used in construction, infra, logistics
- Higher margins, more cyclical, more exciting
Others (0.29%)
- Rotavators, harvesters, spare parts
- Financially irrelevant, emotionally comforting
Manufacturing is done at Baddi, Himachal Pradesh, spread across 1,27,840 sq. m, with 12,000 tractors + 720 cranes capacity. Captive foundry gives cost control—good moat, but not a castle.
Exports contribute ~10% of sales, spread across Africa, Middle East, Latin America, Europe. Not bad, but not a forex superhero either.
The real kicker?
They also own an NBFC subsidiary (Barota Finance Ltd) to finance their own products. Smart? Yes. Risky? Also
