1. Opening Hook
Who knew tractors could be more exciting than tech IPOs? VST Tillers just pulled off its best-ever Q2, proving that even the humble farmer’s machine can deliver juicier growth than a startup. While global giants debate EV subsidies, these guys quietly powered up 43% tiller growth and called it “just the beginning.” The CEO’s tone was part farmer, part futurist – promising to electrify fields, literally.
But wait till you hear how they plan to sell electric tillers to farmers with free electricity and zero chargers nearby. Grab your vada pav; the real horsepower drama unfolds below. 🚜
2. At a Glance
- Revenue up 11%:CFO swears it’s not Excel magic, just tractors finally running on torque instead of hope.
- EBITDA margin steady at 13.1%:Flat as Karnataka farmland, but respectable.
- PAT fell to ₹25.4 Cr (from ₹44.9 Cr):MTM losses played villain again—markets giveth, markets taketh away.
- H1 Revenue ₹598 Cr (+26%):Their best-ever first half; spreadsheets almost caught fire.
- Cash flow +₹62.5 Cr:Farmers paid up, treasury finally behaved.
- Stock traders still confused:Growth story in engines, volatility in investments—choose your tractor wisely.
3. Management’s Key Commentary
“We had the highest turnover of any Q2 so far—₹315 Cr vs ₹283 Cr last year.”(Translation: Record-breaking season; CFO didn’t need Red Bull this quarter.)
“Power tillers grew 43%, tractors 10%, and power weeders 42% in H1.”(Farms are turning into Formula 1 circuits—minus the champagne.)
“Our operational EBITDA is stable at 13%.”(Stability = joy, until MTM losses crash the afterparty 😏)
“Zetor JV tractors now run on 3.22L engines—farmers call it ‘beast mode.’”(Because why just plough when you can dominate?)
“Retail finance for small machines rose from 6% to 13%.”(Even Bajaj Finance smelled opportunity in the mud.)
“Electric tillers will work where electricity is free.”(So basically, anywhere except real farms.)
“We’re aiming for 10,000 tractors annually soon.”(If torque max doesn’t scare competition, ambition will.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | Growth | Commentary |
|---|---|---|---|---|
| Revenue (₹ Cr) | 315 | 283 | +11% | Farmers did the heavy lifting. |
| EBITDA Margin (%) | 13.1 | 13.3 | Flat | Flat is the new up. |
| PAT (₹ Cr) | 25.4 | 44.9 | -43% | MTM loss struck again. |
| Power Tillers (units) | 13,128 | 11,236 | +17% | Small farms, big dreams. |
| Domestic Tractors (units) | 1,068 | 924 | +16% | Back on track—literally. |
| Exports (units) | 254 | 382 | -33% | Tariffs trumped torque. |
| Power Reapers (units) | 1,432 | 598 | +140% | Harvested applause. |
TL;DR:The company’s domestic engines are firing, exports need an oil change, and treasury needs fewer “mark-to-mayhem” moments.
5. Analyst Questions
Q:“When will tractor volumes double?”A:“Soon. 10,000-12,000 units in two years.”(Translation: If R&D doesn’t nap.)
Q:“GST cut to 5%—will demand rise?”A:“Yes, small farmers celebrate ₹20k savings; rich ones barely blink.”(Economics meets ground reality.)
Q:“Exports weak?”A:“Blame shipping delays and Trump tariffs.”(Geopolitics: the uninvited tractor rider.)
Q:“Electric tractors?”A:“Cheaper to run, impossible to charge.”(Still, sounds sexy for press releases.)
Q:“Investment book volatility?”A:“We’ll realign… after booking profits.”(Translation: Pray markets stay kind.)
6. Guidance & Outlook
Management avoided numeric “guidance,” citing trauma from past surprises. Still, tone was bullish: expect continued growth in domestic tractors and power tillers, aided by new engines and smoother subsidy flow.
