Indo Farm Equipment Limited — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

Indo Farm Equipment reported a mixed Q3 FY26, with strong double-digit revenue growth driven primarily by the Tractor segment's robust performance. However, the Crane segment faced headwinds, experiencing a revenue decline and marginal volume degrowth due to new emission norms and market adjustments. EBITDA margins saw compression due to increased marketing spend and competitive pricing in new markets, though management expects normalization and improvement in the next fiscal year with new capacity coming online and debt reduction plans.

Highlights

  • Q3 FY26 Revenue from operations increased 10.81% YoY to ₹100.64 crores.

  • 9-month FY26 Revenue from operations grew 20.43% YoY to ₹290.96 crores.

  • Tractor segment showed robust growth, with Q3 FY26 revenue up 88.62% YoY to ₹47.91 crores and 9-month revenue up 55.04% YoY to ₹140.25 crores.

  • New pick and carry crane project is on track for commercial production in Q1 FY27, with civil work in full progress.

  • Expanded dealer network, adding 25 new dealers in Tractor Division (total 200+) and 5 in Crane Division.

Concerns

  • Q3 FY26 EBITDA saw a slight decline of 1.06% YoY to ₹12.16 crores.

  • Q3 FY26 Crane segment revenue declined 19.41% YoY to ₹52.73 crores.

  • EBITDA margin compressed from 16.12% (Q1 FY25) to 12.77% (Q3 FY26) due to increased marketing/manpower costs and competitive pricing in new markets.

  • Crane volume experienced a marginal decline in 9-month FY26 (705 units vs 735 units last year) attributed to new emission norms and market acceptance.

Key financials

2 periods

Q3

  • Revenue from Operations
    ₹100.64 Cr
    YoY +10.8%
  • EBITDA
    ₹12.16 Cr
    YoY -1.1%

9M

  • Revenue from Operations
    ₹290.96 Cr
    YoY +20.4%
  • EBITDA
    ₹36.02 Cr
    YoY +10.4%

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 (Q3)
₹100.64 Cr Total
  • Crane Segment ₹52.73 Cr 52.4%
  • Tractor Segment ₹47.91 Cr 47.6%

Order book

low confidence
Management mentioned receiving a trial order from Germany for 48 Tractors and a small trial order from the UK, indicating initial export marketing success. They also noted 'better bookings now' for cranes, but no specific monetary value was provided for the overall order book.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹70 Cr IPO proceeds
    • New pick and carry crane project (civil construction, pre-engineered building, major machinery procurement) ₹70 Cr
    Mr. Ranbir Singh Khadwalia: We, just for your knowledge, this money which we are investing in this crane, new, building the new crane facility. The land was already available with us, 30 acre additional land where we are putting the new plant. Okay, again, apart from 35 acres, the current facility. On the 30-acre plant, the money which we are investing in this project, basically, plus 70 odd crore, this is... we have, raised in IPO.
  • Debt Debt disclosed
    • Repayment Repaid term loans this year. ₹15 Cr
    Mr. Ranbir Singh Khadwalia: Around 85 crore, which we can use, depending on the requirement. But, what, term loans were there, which we have almost reduced, and I think in this financial end of closing of this financial year, Singlaji, what figure will be, I think, less than 10 crore? Mr. Anshul Khadwalia: Around 7 to 8 crores, sir. Mr. Ranbir Singh Khadwalia: Around 7 to 8 crore will be left. This year, we'll be paying around 15 crore, almost 15 crore that, this, term loans we have repaid. Mr. Anshul Khadwalia: So we will term loan, zero buy next year, sir. Mr. Ranbir Singh Khadwalia: Term loan will be zero by next year.

Guidance & targets

Revenue

  • Overall Revenue Growth Revenue · FY26 · High confidence around 25%
    The Company expects to achieve overall revenue growth of around 25%. on FY-26

    — Mr. Ranbir Singh Khadwalia

  • Tractor Revenue Growth Revenue · FY26 · High confidence around 50% plus
    with total tractor revenue around 50% plus

    — Mr. Ranbir Singh Khadwalia

  • Crane Revenue Growth Revenue · FY26 · High confidence around 10%

    Previously 20-25% → around 10%

    and the Crane revenue is expected to grow around 10%

    — Mr. Ranbir Singh Khadwalia

  • New Tower Crane Revenue Revenue · FY27 · High confidence 60 to 70 crore
    And in FY26-27, we are expecting a revenue of around 60 to 70 crore. Figures in this, next financial year, the next financial year.

    — Mr. Ranbir Singh Khadwalia

  • Total Top Line Revenue · FY27 · High confidence 700, 800 crores
    Pushkar Jain: So, are we expecting, like, 700, 800 crores of top line next year? Mr. Ranbir Singh Khadwalia: We are expecting these numbers, definitely, we are expecting these numbers.

    — Mr. Ranbir Singh Khadwalia

  • Overall Top Line Growth (Next FY) Revenue · FY27 · High confidence around 30% plus
    Mr. Ranbir Singh Khadwalia: Next, financial year, you know, sector, we are expecting to still further grow around 30% plus.

    — Mr. Ranbir Singh Khadwalia

Margin

  • Overall EBITDA Margins Margin · FY26 · High confidence 12.5% to 13%
    with the overall expected EBITDA margins in the range of 12.5% to 13%.

    — Mr. Ranbir Singh Khadwalia

  • EBITDA Margin Improvement Margin · FY27 · High confidence 150 to 200 points (to 14.5-15%)
    In the next year, we are expecting little improvement in the EBITDA. So, maybe, under, under 150 to 200 points. Rahul Gupta: Okay, it will be around, 14.5 to 15%. Mr. Ranbir Singh Khadwalia: Yes, you can see.

    — Mr. Ranbir Singh Khadwalia

  • Tower Crane EBITDA Margin Margin · FY27 · High confidence 12 to 13%
    Mr. Ranbir Singh Khadwalia: It'll be almost in the... in the beginning, in these numbers, it will be almost around Between 12 to 13 only.

    — Mr. Ranbir Singh Khadwalia

Capacity

  • New Pick and Carry Crane Project Commercial Production Capacity · Q1 FY27 · High confidence start commercial production
    The project is expected to start commercial production in the first quarter of 26-27, FY26-27.

    — Mr. Ranbir Singh Khadwalia

Volume

  • Crane Volume from New Facility Volume · FY27 · High confidence min 1,000 units, targeting 1,800 units
    Mr. Anshul Khadwalia: Yeah, adding to what's just said, so approximately what, you know, we were estimating is to proportionately add approx... a minimum 1,000 machines additional in the next, financial year from the new plant. From 1,000 machines in addition to what we are already selling. Mr. Ranbir Singh Khadwalia: Yeah, there's the minimum numbers. Otherwise, we are targeting 1,800.

    — Mr. Ranbir Singh Khadwalia

  • Total Crane Volume Volume · FY27 · High confidence almost 2,000 units
    Pick and carry crane additional to the... what we are doing from the current plant.1000 plus crane Total number become almost 2,000. Okay. Yeah.

    — Mr. Ranbir Singh Khadwalia

  • Crane Sales Volume (Current FY) Volume · FY26 · Medium confidence some growth (not degrowth)
    Mr. Anshul Khadwalia: Yeah, so things are improving. This January, we have closed at very good volumes, and we are expecting, to, you know, whatever 4-5% degrowth we have done in the first three quarters, we are expecting to match it up in the last quarter, and we will not be closing at a, degrowth at the end of the year. So we... there will be some growth.

    — Mr. Anshul Khadwalia

Market Share

  • Tractor Dealers Target Market Share · next 3 years · High confidence 500
    Sir, our plan to add... so currently, with the current LOls that we have reached, our number is 200, and our plan to take it to 500, we are well on track to achieve that plan. Rather, we are hopeful to achieve that before time.

    — Mr. Anshul Khadwalia

  • Crane Dealers Target Market Share · High confidence Approximately 50 plus
    So, our target is to reach, Approximately 50 plus dealers. Where we feel that we can cover the full country.

    — Mr. Anshul Khadwalia

What to watch in Q4 FY26

New Crane Facility Commercial Production Start

Q1 FY27
Current Civil construction in full progress, project regaining momentum.
Target Commercial production starts.

Why it matters

This is a key milestone for future crane revenue growth and capacity expansion, crucial for achieving FY27 targets.

The project is expected to start commercial production in the first quarter of 26-27, FY26-27.

Risks & concerns

  • Crane Segment Degrowth/Slowdown due to New Emission Norms

    medium

    Q3 FY26 Crane revenue declined 19.41% YoY. The transition to new BS5 emission norms for engines caused a temporary market slowdown, price increases, and required time for market acceptance and field training. Management believes the market is now normalizing.

    Management acknowledged

  • EBITDA Margin Pressure from Expansion Costs

    medium

    EBITDA margin fell from 16.12% (Q1 FY25) to 12.77% (Q3 FY26) primarily due to increased manpower and marketing costs associated with expanding the dealer network and entering new markets, where competitive pricing was adopted to gain entry.

    Management acknowledged

  • Government Capital Expenditure Slowdown

    low

    A slowdown in government capital expenditure was cited as a contributing factor to past market slowdowns. However, management expects recovery with increased infra investment in the upcoming budget.

    Management acknowledged

Q&A highlights

6 direct
Tower Crane Production & Dealer Additions Direct
Trial Production will be ready in this financial year. And we are expected to start the commercial sale from the second quarter of the next financial year. ... now the dealership number has gone to around 200 numbers. Earlier, I think it was 140, I think around 60. 60 dealers we have added... our plan to take it to 500, we are well on track to achieve that plan.

Clarifies the timeline for new tower crane commercialization and the progress on expanding the dealer network for future growth.

Asked by Kaushal Sharma

Crane Sales Decline & Average Selling Price (ASP) Direct
Ma'am, the sales number which is decreased is around 4% only, so that is also because of a mix of certain models. Some bigger machines are produced in terms of... in less capacity, and the smaller ones we can produce in more numbers. So that is the reason. ... The average selling price has increased by approximately 10%, which is coming now to be 21.5 to 21.9 [lakhs].

Explains the reasons for the crane segment's sales decline despite high capacity utilization, attributing it to product mix and provides an update on the increased average selling price.

Asked by Sameera Middha

Crane Growth Guidance Revision Direct
Ma'am, this was... this was because of the last year. The emission known was that from 3 engines. And suddenly, because of coming of this emission norm going to tram 5 engine, okay? The acceptability in the market, and there is a little price increase also. ... And, sir, just to add to what Chairman Sir explained, this shift is across industry. It is not limited to us. This is a huge shift from BS3 to VS5. So, whenever there is an upgradation in the norms, it takes a little while for the market to accept.

Provides a detailed explanation for the reduction in crane growth guidance, linking it to industry-wide challenges with new emission norms and market acceptance.

Asked by Sameera Middha

Funding for New Crane Facility & Debt Reduction Direct
this money which we are investing in this crane, new, building the new crane facility... we have, raised in IPO. So, no borrowing is increased. ... Around 7 to 8 crore will be left. This year, we'll be paying around 15 crore, almost 15 crore that, this, term loans we have repaid. ... Term loan will be zero by next year.

Clarifies that the new crane facility is being funded through IPO proceeds without increasing debt, and outlines a clear path to becoming term-loan debt-free by the next fiscal year.

Asked by Pradyum Kothari

EBITDA Margin Fall Explanation Direct
Because, primary reason is, we have recruited a lot of numbers, manpower, basically, for... especially for marketing. And that... that cost, because initially, for finding dealers, searching their new dealer, new partners, their little bit more spending has been done on the manpower front. So that has little affected. That is, I think, the main reason, and maybe we are going in some new market. So there we are offering little more competitive pricing, because in the market, the new for us, there we have given little more competitive pricing. Just to enter there.

Directly addresses the reasons for the quarter-on-quarter EBITDA margin compression, attributing it to strategic investments in marketing and manpower for expansion into new markets.

Asked by Kaushal Sharma

Peak Revenue from New Crane Facility Direct
The new facility will be very large. It is a 3,600 crane facility. We are putting Pick and carry crane. And there, we'll be making some, tower crane also. ... Not 1,200 tower cranes. It is a capacity of 240 tower cranes we can produce. ... On pick and carry crane, then you can calculate what kind of revenue can be generated with that plant. ... The average selling price of Tower crane is around maybe 65 lakh rupees. 60 lakh, you can consider a safer side. ... So maybe close to, like, 1,000 crores peak revenue can be generated from the new...

Provides a detailed breakdown of the capacity and potential peak revenue generation from the new crane facility, including both pick and carry and tower cranes.

Asked by Pushkar Jain

3 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

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%.

Segmental Performance: Tractor vs. Crane

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.

New Projects & Capacity Expansion

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.

Dealer Network & Market Expansion

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.

EBITDA Margin Dynamics & Outlook

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.

Debt Management & Capital Allocation

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.

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