Indo Farm Equip.

Indo Farm Equipment reported a robust 10.81% year-on-year growth in revenue from operations for Q3 FY26, reaching ₹100.64 crores. For the nine-month period ending December 25, 2025, revenue increased by 20.43% YoY to ₹290.96 crores. Despite the strong top-line performance, Q3 EBITDA saw a slight decline of 1.06% YoY to ₹12.16 crores, with the nine-month EBITDA growing 10.39% to ₹36.02 crores. The overall EBITDA margin for Q3 FY26 was approximately 12.08%.

The Tractor segment was a significant growth driver, with Q3 FY26 revenue soaring 88.62% YoY to ₹47.91 crores, and nine-month revenue increasing 55.04% YoY to ₹140.25 crores. In contrast, the Crane segment faced challenges, experiencing a 19.41% YoY revenue decline in Q3 FY26 to ₹52.73 crores. The nine-month Crane revenue remained almost flat at ₹150.71 crores, with a marginal volume degrowth of 4.08% (705 units vs 735 units last year). This decline was attributed to the transition to new BS5 emission norms, associated price increases, and the time required for market acceptance.

The company's new pick and carry crane project is progressing well, with civil construction and procurement of major machinery underway. This project, funded by IPO proceeds with a capex of approximately ₹70-75 crores, is expected to commence commercial production in Q1 FY27. Management anticipates this new facility will significantly boost crane capacity, targeting a minimum of 1,000 additional units and potentially up to 1,800 units in FY27, contributing ₹60-70 crores in revenue from tower cranes alone in the first year.

Indo Farm Equipment is actively expanding its market reach and dealer network. In the nine months ending December 25, 2025, the company added 60 new dealers, bringing the total to over 200 for the Tractor Division, with a long-term target of 500 dealers. The Crane Division also saw expansion with 5 new dealers added this quarter. The company is strategically entering new geographies, particularly in the South and East of India, and has initiated export marketing activities, securing trial orders from Germany (48 Tractors) and the UK.

The company's EBITDA margin experienced compression, falling from 16.12% in Q1 FY25 to 12.77% in Q3 FY26. Management attributed this primarily to increased investments in manpower and marketing for dealer network expansion, as well as competitive pricing strategies adopted to enter new markets. However, for FY26, the company maintains an overall EBITDA margin guidance of 12.5% to 13%. Looking ahead to FY27, they expect an improvement of 150-200 basis points, targeting margins of 14.5% to 15% as volumes increase and new capacities become operational.

Indo Farm Equipment is focused on strengthening its balance sheet. The new crane facility's capex of ₹70-75 crores is being funded entirely through IPO proceeds, avoiding additional borrowing. The company has significantly reduced its term loans, repaying approximately ₹15 crores this year, with only ₹7-8 crores expected to remain by the end of FY26. Management expressed confidence in achieving a 'zero term loan' status by the next financial year, indicating a strong commitment to debt reduction and financial prudence.