Indo Farm Equipment Limited — Q2 FY26 earnings call

Call held 26 Nov 2025

Management summary

Indo Farm Equipment reported strong Q2 FY26 results driven by robust tractor segment growth, with revenue from operations increasing 21.94% YoY to ₹99.06 crores. The crane segment, however, experienced a slight decline due to new emission norms and project delays. The company is actively expanding its dealer network and expects its new crane facility to commence production in Q1 FY27, targeting 25% overall revenue growth for FY26 and 16-16.5% console EBITDA margin.

Highlights

  • Revenue from operations for Q2 FY26 grew 21.94% YoY to ₹99.06 crores, and H1 FY26 grew 26.22% YoY to ₹190.31 crores.

  • Tractor segment showed robust growth of 54.17% YoY in Q2 FY26 (₹54.12 crores) and 41.93% YoY in H1 FY26 (₹92.33 crores).

  • PBT for Q2 FY26 increased 39.31% YoY to ₹6.45 crores.

  • EBITDA (including other income) grew 12.62% YoY in Q2 FY26 to ₹12.05 crores and 17.31% YoY in H1 FY26 to ₹23.86 crores.

  • Company aims to expand its tractor dealer network from 160-165 to 500 in 3-4 years and 1500 in 10 years.

Concerns

  • Crane segment revenue declined 2.6% YoY in Q2 FY26 to ₹44.93 crores, primarily due to new emission norms, price increases, and project delays.

  • Margin reduction in the crane business due to increased costs from new Term 5 emission norms, which were not fully recovered initially.

  • New crane project faced delays due to unprecedented heavy rains in Himachal Pradesh, pushing commercial production to Q1 FY27.

Key financials

2 periods

Q2 FY26

  • Revenue from Operations
    ₹99.06 Cr
    YoY +21.9%
  • PBT
    ₹6.45 Cr
    YoY +39.3%
  • EBITDA
    ₹12.05 Cr
    YoY +12.6%
  • Tractor Units Sold
    721 units
  • Crane Units Sold
    200 units

H1 FY26

  • Revenue from Operations
    ₹190.31 Cr
    YoY +26.2%
  • EBITDA
    ₹23.86 Cr
    YoY +17.3%
  • Console EBITDA Margin
    14.5%

What they filed

Q1 FY27: revenue up 15.0%, net profit up 10.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue81 91 125 91 99 +22%101 +11%129 +3%105 +15%
EBITDA10 12 16 10 11 +2%11 −11%17 +5%12 +16%
Net profit3 4 13 5 4 +31%5 +24%8 −38%5 +10%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue (Q2 FY26)
₹99.05 Cr Total
  • Tractor Segment ₹54.12 Cr 54.6%
  • Crane Segment ₹44.93 Cr 45.4%

Order book

low confidence
Management discussed capacity for cranes and tractors, and future revenue targets, but did not provide a quantified total order book.

Source: Inferred

Capital allocation

high confidence
  • Capex Capex disclosed
    • New pick-and-carry crane project (71 crores) ₹71 Cr
    Sameera Middha: Okay, sir. And sir, one last question I have, that the 71 crores Capex that we are undergoing for cranes, so that is for the pick and carry cranes only, or is it for the tower cranes?
  • Liquidity Liquidity disclosed Working capital is sufficient for current and next financial year's growth.
    Mr. Ranbir Singh Khadwalia: I think Working capital is sufficient. Till the next financial year, in 26-27 also, we don't need additional working capital.

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · FY26 · High confidence around 25%
    Our company have achieved revenue from operations of Rs. 99.06 crore during the second quarter of FY26 190.31 crore for half year of FY26. ... The company expects to achieve overall revenue growth of around 25% for FY25-26.

    — Mr. Ranbir Singh Khadwalia

  • Tractor Revenue Growth Revenue · FY26 · High confidence between 35 to 40%
    With the tractor revenue is expected to grow between 35 to 40%

    — Mr. Ranbir Singh Khadwalia

  • Crane Revenue Growth Revenue · FY26 · High confidence between 15% to 20%
    And the crane revenue is expected to grow between 15% to 20%

    — Mr. Ranbir Singh Khadwalia

  • Tower Crane Revenue Revenue · FY27 · High confidence around Rs. 60 to 70 crore
    And in FY2627, A revenue of around Rs. 60 to 70 crore is expected .

    — Mr. Ranbir Singh Khadwalia

  • Overall Revenue Growth Revenue · FY27 · High confidence 25-30%
    Mr. Ranbir Singh Khadwalia: Again, Madam, 25-30% growth.

    — Mr. Ranbir Singh Khadwalia

Margin

  • Console EBITDA Margin Margin · FY26 · High confidence 16-16.5%

    Previously 12.5-13% → 16-16.5%

    Mr. S.M. Singla: So it would be in the range of around 16-16.5% sir. ... Mr. S.M. Singla: For full year sir

    — Mr. S.M. Singla

Project Timeline

  • New Pick-and-Carry Crane Commercial Production Project Timeline · FY27 · High confidence early first quarter
    The project is expected to start commercial production in early first quarter of FY26-27

    — Mr. Ranbir Singh Khadwalia

  • Tower Crane Commercial Sale Project Timeline · FY27 · High confidence second quarter
    The tower crane, technology tie-up, and the way forward Onward, second quarter, FY26-27, the company is expected to start the commercial sale of the tower cranes

    — Mr. Ranbir Singh Khadwalia

Export

  • Export Revenue Export · FY26 · High confidence Plus 40 crore
    Mr. Ranbir Singh Khadwalia: Yeah, ma'am. We... we are expecting around Plus 40 crore export this year.

    — Mr. Ranbir Singh Khadwalia

AUM

  • Barota Finance AUM AUM · FY27 · High confidence around 150 to 160 crores

    Previously around 130 odd crores → around 150 to 160 crores

    Mr. S.M. Singla: Last... last year, our AUM was around 130 odd crores.And maybe,, we can look for a target of around 150 to 160 crores.

    — Mr. S.M. Singla

What to watch in Q3 FY26

New Pick-and-Carry Crane Project Commercial Production

Q1 FY27
Current Project work regained momentum after delays; civil work, retaining wall, and machinery orders completed.
Target Commercial production starts

Why it matters

Crucial for capacity expansion and future crane revenue growth, validating the 71 crore capex.

Mr. Ranbir Singh Khadwalia: The project is expected to start commercial production in early first quarter of FY26-27 ... Anil Nahata: So, in Q1, you are confident of starting the production on the. Mr. Ranbir Singh Khadwalia: Yes. Q1, yes.

Risks & concerns

  • Crane Margin Compression due to Emission Norms

    medium

    New Term 5 engine emission norms increased manufacturing costs, which were not fully recovered initially, leading to margin reduction in the crane business.

    Management acknowledged

  • New Crane Project Delays

    medium

    Unprecedented heavy rains in Himachal Pradesh delayed the progress of the new pick-and-carry crane project work until September 2025.

    Management acknowledged

  • Sluggish Crane Sales Post Emission Norms

    medium

    The introduction of new emission norms led to price increases and technology changes, causing customers to postpone buying decisions, resulting in sluggish sales.

    Management acknowledged

  • Tractor Industry Volume Slowdown

    low

    An analyst noted an industry-wide tractor volume slowdown, but management stated the company has significant untapped market potential.

    Analyst downplayed

Q&A highlights

7 direct
Dealer expansion strategy and split between crane and tractor networks Direct
for tractor Division, we have about currently, we had 140 dealers. In this financial year, we have appointed somewhere around 23 to 24 dealers... To making a total number to around 160 to 165 active tractor dealers. And for cranes, so I think around 5 to 6 numbers of crane dealers have been added post the IPO.

Provides specific numbers on dealer network growth and the split between key segments, indicating expansion efforts.

Asked by Rahul Gupta

Prospective customers and competitive advantage of Indo-Power cranes Direct
This, Abhishek ji, this pick and carry crane, usage is quite large. This starts from the... first is the, hiring companies... and second is the corporate and industries. Many construction company corporate, they buy their own crane... we are selling our product on the quality basis, we have given better features than the product available in the market. Therefore, people, like our product, and they are buying And we are in the other way, we are competitive in pricing also, because we are having a backward integration in the plant.

Clarifies the target customer base for cranes and highlights the company's competitive edge through quality, features, and backward integration.

Asked by Abhishek Jain

Reasons for a prospective dealer to choose Indo Farm Direct
Indo Farm comes in, because as a company, we have one of the largest ranges, we have our own NBFC, we have slight price advantage, we have better margins for our dealers. So, sir, we at... rather, I feel we are currently one of the best companies to partners with in terms of dealerships, where our business model is slightly low in investment and better in returns.

Explains the value proposition for new dealers, including product range, financial support (NBFC), better margins, and lower investment.

Asked by Abhishek Jain

Feasibility of electric or hybrid crane platforms Partial
We are internally, our R&D is working on this, basically, but it'll take some time Because the cost is going quite expensive, and this electric crane across the globe is not very popular at this moment Because it has to work on the site, and there's hardly any sale volume is coming from anywhere from across the globe. So, it'll take a little more time, sir.

Indicates the company's R&D efforts in electric cranes but highlights cost and market adoption challenges, suggesting a longer timeline for commercialization.

Asked by Shonak Khan

Financing for new dealers in new geographies and timeline for bank financing Direct
If some dealer from Mahindra left And he started our business, like in Karnataka. So that person, having good relation, they can get it started maybe in 90 days' time, because bank will take an opening of the code... But initially, we have to support till he starts number, and in a state, if he'll start selling 30, 40, 50 numbers, then it's good for bank.

Details the process and timelines for new dealer financing, emphasizing the company's initial support and the volume required for bank involvement.

Asked by Shonak Khan

Reasons for degrowth in crane revenue in Q2 FY26 Direct
There are two reasons. One is... one you identified that because of the long monsoon this year, and another because the new project couldn't be able to start, basically. And another was the emission norm. New emission norm has been started on 1st July... So this was the reason the price also increased.And the technology-wise, also, there is a lot of increase.

Provides clear explanations for the crane segment's underperformance, linking it to external factors (monsoon, new emission norms) and internal project delays.

Asked by Sandeep Patwa

Status of the new crane production line and capex progress Direct
Civil work is already started. Tube well work, seal work, retaining wall is completed, majority portion is completed, basically. And, the prefabricated set is, Already order placed, and the structure is almost ready. So now, he's going to start erection, work is going to start immediately. Machinery, major machinery order has been placed... So we are expecting that we should... we'll erect the machine, we'll do the same trial also by end of this.Financial year. ... Yes. Q1, yes.

Gives a detailed update on the progress of the new crane manufacturing facility, confirming that commercial production is expected to start in Q1 FY27.

Asked by Anil Nahata

Clarification on console EBITDA margin guidance for FY26 Direct
Mr. S.M. Singla: So it would be in the range of around 16-16.5% sir. ... Mr. S.M. Singla: For full year sir

Corrects and clarifies the full-year console EBITDA margin guidance, which is a key profitability metric for investors.

Asked by Namish Gupta

3 min read 6 chapters

Detailed narrative

Q2 FY26 and H1 FY26 Financial Performance Overview

Indo Farm Equipment Limited reported a strong Q2 FY26 with revenue from operations reaching ₹99.06 crores, marking a 21.94% year-on-year growth. For the half-year ended September 2025, revenue stood at ₹190.31 crores, a 26.22% increase compared to H1 FY25. Profit Before Tax (PBT) for Q2 FY26 was ₹6.45 crores, growing 39.31% YoY. The company's console EBITDA margin for H1 FY26 was 14.5%, with a full-year target of 16-16.5%.

Segmental Performance: Tractor vs. Crane

The tractor segment was a key growth driver, with revenue increasing 54.17% YoY to ₹54.12 crores in Q2 FY26 and 41.93% YoY to ₹92.33 crores in H1 FY26. In contrast, the crane segment experienced a 2.6% YoY decline in Q2 FY26 revenue to ₹44.93 crores, primarily due to the impact of new Term 5 emission norms and associated price increases. Despite the Q2 dip, the crane segment's H1 FY26 revenue grew 15.24% YoY to ₹97.98 crores.

New Crane Project Update and Capacity Expansion

The new pick-and-carry crane project, involving a ₹71 crore capex, faced delays due to heavy rains in Himachal Pradesh but has regained momentum. Civil work, retaining wall completion, and machinery orders are largely complete, with commercial production expected to commence in Q1 FY27. The company also plans to start commercial sales of tower cranes in Q2 FY27, targeting ₹60-70 crores in revenue from this segment in FY27. Total pick-and-carry crane capacity is projected at 5,000 units (3,600 new plant, 1,400 existing), and tower crane capacity at around 120 machines in the first year.

Dealer Network Expansion Strategy

Indo Farm is aggressively expanding its dealer network, having added 25 new tractor dealers post-IPO, bringing the total to 160-165 active dealers. The company aims to grow this to 500 dealers in 3-4 years and 1,500 in 10 years, focusing on a cluster-based approach in key states like Haryana, Punjab, UP, and Maharashtra. For cranes, 5-6 new dealers have been added post-IPO. The company emphasizes offering better margins, a wide product range, and financial support through its NBFC (Barota Finance) to attract new dealers.

Margin Dynamics and Emission Norms Impact

The company noted that margin reduction in the crane business was due to increased costs associated with new Term 5 emission norms, which were not fully recovered initially. These norms necessitated higher-priced, sophisticated engines, leading to customer hesitation and sluggish sales. Management expects to recover these costs going forward, contributing to the targeted console EBITDA margin of 16-16.5% for FY26, up from 14.5% in H1 FY26.

Export Market Initiatives and Barota Finance Performance

Indo Farm has initiated export marketing activities, participating in the Agritechnica exhibition in Germany to explore new markets, especially in Europe. The company expects to achieve over ₹40 crores in export revenue for FY26, leveraging its competitive product features. Barota Finance, the company's NBFC, maintains a net NPA of less than 3% and aims for an AUM of ₹150-160 crores by FY27, up from ₹130 crores last year, by employing systematic strategies and supporting new dealers.

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