VST Tillers Tractors reported its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The company delivered a 25% increase in annual revenue to ₹1,240 crore from ₹994 crore in FY25. Profit After Tax (PAT) for the year stood at ₹106 crore, a 15% increase compared to ₹95 crore in the previous year. Excluding the impact of fair value gains or losses on investments, adjusted PAT grew by 61% to ₹113 crore from ₹70 crore in FY25. The Board of Directors recommended a final dividend of ₹25 per equity share of ₹10 each, subject to shareholder approval at the Annual General Meeting. The statutory auditors, M/s. K.S. Rao & Co., issued an unmodified opinion on both the standalone and consolidated financial results, as declared by Chief Financial Officer Nitin Agrawal.

Operational Performance

Operational EBITDA for FY26 increased significantly to ₹165.90 crore from ₹111.10 crore in the previous year, with margins improving to 13.40% from 11.20%. The company generated strong operating cash flows of ₹132 crore during the year, compared to ₹76 crore in FY25. For the quarter ended March 31, 2026, revenue from operations stood at ₹328 crore, a 9% growth year-on-year over ₹301 crore in Q4 FY25. Operational EBITDA for Q4 increased by 16% to ₹46.80 crore from ₹40.40 crore in the prior year, with margins expanding to 14.20% from 13.40%. Q4 FY26 PAT stood at ₹5 crore, compared to ₹25 crore in Q4 FY25, reflecting an 80% decline. However, PAT excluding fair value gains or losses improved 36% to ₹39 crore from ₹28 crore in Q4 FY25, indicating strong underlying operational profitability.

The following table summarises the full-year standalone financial performance:

The quarterly standalone performance is summarised below:

Sales Volumes and Highlights

The company achieved record-breaking sales volumes across key product categories for the full year. Power Tiller sales reached their highest-ever level at 50,332 units, reflecting 34.90% growth over FY25. Domestic tractor volumes grew 18.60% to 4,596 units, while Power Weeder sales surged 52.10% to 11,346 units. Power Reaper sales also rose 44.20% to 3,464 units.

Management Outlook and Strategy

In an investor con-call held on May 18, 2026, management addressed the outlook for FY27, citing uncertainties regarding inflationary pressures and the potential impact of an El Niño-affected monsoon. Consequently, the company is not providing formal guidance at this stage. However, April performance was reported to be better than the previous year. The company continues to focus on small farm machinery, with plans to scale up its higher horsepower tractor segment through its joint venture, VST Zetor Private Limited.

On the global front, management noted challenging business conditions in Europe due to inflation and the war situation. To mitigate transit time issues, the company is establishing operations in the Netherlands. Plans for a US launch are progressing, with shipments expected by the end of the year and a market launch planned by the end of calendar year 2027. The company is also developing a global tech centre, targeted to become operational by 2027, with an investment of over ₹100 crore in infrastructure. Annual R&D spend remains in the range of ₹50-60 crore.

Management highlighted the potential for electric tillers and weeders, with commercialization expected to scale up from Q2 FY27 onwards. Regarding market share, the company holds approximately 70%-75% in the power tiller segment and 6%-7% in the power weeder segment. The overall tractor market share is less than 1%, though it exceeds 10% in the compact tractor segment in Maharashtra and Gujarat. The company expects to launch 16-20 new product variants over the next 18 months.

VST Tillers Tractors has reported a strong financial performance for the year ended March 31, 2026, with full-year revenue growing 25% to INR1,248 crores compared to INR994 crores in the previous year. The company disclosed the transcript of its investor conference call held on May 15, 2026, on May 21, 2026, providing detailed insights into its operational results and strategic outlook. The disclosure was submitted to the National Stock Exchange of India Ltd. and BSE Ltd. under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

The company achieved robust growth across key segments during the fiscal year. Revenue from operations for Q4FY26 stood at INR328 crores, a 9% increase from INR301 crores in the same quarter last year. For the full year, operational EBITDA margins improved by 220 basis points, rising from 11.2% to 13.4%. Excluding fair value gains or losses, the Profit After Tax (PAT) for the year reached INR113 crores, up from INR70 crores in the previous year.

Operational Metrics and Sales Volume

The revenue growth was primarily driven by a significant surge in power tiller sales, which increased by 35% to 50,332 units. Domestic tractor sales also returned to a growth trajectory, registering an 18.6% increase to 4,596 units. Additionally, power weeder sales grew substantially from 7,458 units to 11,346 units. The company generated cash flows of INR132 crores during the year, compared to INR76 crores in the previous year.

In Q4FY26, power tiller volumes were recorded at 12,958 units. Domestic tractor sales for the quarter grew by approximately 20% to 1,244 units, while tractor exports increased to 430 units from 260 units in the corresponding quarter of the previous year. Power weeder sales for the quarter stood at 2,947 units, reflecting a 27% growth.

Strategic Outlook and Guidance

Management highlighted that while the demand scenario remains positive for April and May, uncertainties regarding inflation and monsoon distribution pose risks. The company aims to achieve a growth rate of 25% and targets EBITDA margins between 12% to 14%. VST Tillers Tractors is focusing on structural shifts, such as increasing retail finance penetration to 20% and expanding its presence in the small and marginal farmer segment through Project Chatrapati.

Regarding new products, the company launched the FENTM series of tractors and electric weeders. Management expects to conduct an all-India launch of electric weeders and tillers in early Q2 of the current fiscal year. The company also signed an MoU with Kerala Agriculture University to collaborate on areas of joint interest.