V.S.T Tillers Tractors Limited

VST Tillers Tractors achieved its highest-ever Q1 turnover of ₹282.5 crore, marking a robust 48% year-on-year growth. Operational EBITDA significantly expanded to 13.3% from 7% in the prior year, reaching ₹37.5 crore. This strong performance led to a PAT of ₹44.6 crore, up from ₹22.8 crore in Q1 last year.

The company reported its highest-ever Power Tiller sales for a quarter, reaching 11,701 units, a 92% growth. The Power Weeder segment also saw strong growth, with sales volume increasing by 63% to 2,349 units. Domestic tractor sales grew by 5%, while export tractor sales increased by 20% to 312 units, primarily driven by European demand.

VST Tillers Tractors launched the new FENTM series of tractors (18.5 HP to 29 HP), emphasizing fuel efficiency, compactness, and maximum torque, targeting vineyard and sugarcane belts. Additionally, four new SFM (Small Farm Machines) models were introduced, including Ranger 50 and Ranger 80 weeders. The company also announced upcoming electric tillers and weeders within the next few months^⏳, promising 5-hour run ability and fast charging.

Retail finance penetration has significantly increased from 0% two years ago to nearly 10% currently, with a target of over 10% for FY26 and 30-40% in the next two years. This growth is crucial for small and marginal farmers who need mechanization but lack capital. The company is also actively expanding its presence in northern markets through its 'OneVST' project, which is progressing well and expected to yield significant numbers in the coming years.

Export volumes, particularly to Europe, are facing headwinds due to softening economic growth and severe international logistics challenges, with shipping times increasing from 25-30 days to 60-90 days, impacting distributor fund rotation. To address this, VST plans to set up an operations base in Europe by the end of the year. The Monarch product for the US market is currently on hold due to tariff concerns, contributing no revenue in Q1.

The company reiterated its long-term vision to achieve ₹3,000 crore in revenue by FY29-30, acknowledging some delays but expressing confidence in revised plans. For the Zetor brand, initial market issues have been resolved with product improvements, and a revamped product is slated for launch during Diwali, marking a ramp-up year for the high HP segment.

In Q1 FY26, the SFM business contributed ₹186 crore to revenue, while the Tractors segment accounted for ₹55 crore. The distribution business generated ₹34 crore, with the balance coming from other sources. This breakdown highlights the significant contribution of the SFM segment to the overall turnover.