This article first appeared on GuruFocus .
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Revenue:INR315 crore in Q2, up from INR283 crore last year; H1 revenue at INR598 crore, up from INR474 crore.
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Revenue Growth:11% growth in Q2; 26% growth in H1.
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Operational EBITDA:13.1% in Q2, slightly down from 13.3% last year; 13.2% in H1, up from 10.8% last year.
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Net Profit (PAT):INR27.7 crore in Q2, up from INR24.35 crore last year, excluding MTM gain/loss.
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Cash Generation:INR62.5 crore in H1, compared to INR52.1 crore last year.
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Power Tillers Sales Growth:43% growth in H1; 16.8% growth in Q2.
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Domestic Tractor Sales Growth:10% growth in H1; 16% growth in Q2.
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Power Weeder Sales Growth:42% growth in H1; 47% growth in Q2.
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Power Reaper Sales Growth:139% growth in H1; 140% growth in Q2.
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Export Sales:Down by 33% in Q2.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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VST Tillers Tractors Ltd ( BOM:531266 ) achieved the highest Q2 turnover ever, with revenue reaching INR315 crores, up from INR283 crores last year.
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The company reported a 26% growth in total revenue generation for H1, reaching INR598 crores compared to INR474 crores in the previous year.
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Cash generation from operations improved significantly, with INR62.5 crores generated in H1 compared to INR52.1 crores last year.
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Power tiller sales saw a remarkable 43% growth in H1, with 24,829 units sold compared to 17,325 units last year.
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The company has launched new products with advanced technology, such as the 3.22 L engine and 16 4 transmission, which have received positive market feedback.
Negative Points
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Exports declined by about 33% in Q2, with only 254 units exported compared to 382 units last year.
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The operational EBITDA margin remained flat at 13.1% in Q2, slightly down from 13.3% last year.
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The PAT (Profit After Tax) decreased to 25.4% from 44.9% last year, primarily due to MTM (Mark-to-Market) losses.
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The company faces challenges in the logistics of exports, with shipping timelines extending from 30-45 days to 60-90 days.
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The entry into the higher horsepower tractor market is competitive, with VST being a late entrant among 17-18 brands, requiring differentiation and market penetration efforts.
Q & A Highlights
Q: Can you provide an outlook on the tractor business and the expected growth in the medium term? A: Antony Cherukara, CEO: We have expanded our product range with the Zetor JV, moving into higher horsepower tractors. We are launching new tech platforms with improved engines and transmissions. We expect growth to accelerate, aiming for 10,000 to 12,000 units in the next two years, driven by new product launches and improved R&D capabilities.
Q: How is the growth outlook for power tillers, considering past challenges with the subsidy scheme? A: Antony Cherukara, CEO: The Sparsh Project by the government has improved subsidy flows, positively impacting demand. Enquiries are high, and we expect continued growth in power tillers, weeders, and reapers. Retail finance penetration has increased, supporting this growth.
Q: What impact do GST cuts have on demand, particularly in the tractor segment? A: Antony Cherukara, CEO: GST cuts benefit smaller farmers more, influencing demand for small machines like power weeders and tillers. While it may prompt early purchases in higher horsepower tractors, the overall expansion in this segment is limited as affordability is less of an issue.
Q: Can you elaborate on the challenges faced in export markets and the outlook for component exports? A: Antony Cherukara, CEO: Export volumes have been affected by logistics delays, impacting capital rotation for distributors. We plan to set up operations in Europe to address this. Component exports, particularly in the railway segment, have room for growth, and we are working on expanding this area.
Q: What is the status of new product launches between the tiller and tractor space, and what advantages do they offer? A: Antony Cherukara, CEO: Trials and customer workshops are ongoing. The new product offers the comfort of a tractor with the affordability of a tiller. We are exploring various engine options, including electric platforms, to enhance versatility and appeal to farmers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
