💰 Financial Performance

Revenue Growth by Segment

The Tractor segment achieved revenue of INR 54.12 Cr in Q2 FY26, representing a growth of 54.17% YoY from INR 35.11 Cr. The Crane segment contributed INR 44.93 Cr in Q2 FY26. Overall standalone revenue for H1 FY26 reached INR 190.31 Cr, growing 26.22% YoY from INR 150.78 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a widespread dealer network across India and operates a manufacturing plant in Baddi, Himachal Pradesh.

Profitability Margins

Standalone PAT margin improved from 3.50% in FY23 to 3.81% in FY24. Consolidated Net Profit before Tax for FY25 was INR 26.17 Cr on revenue of INR 387.19 Cr, yielding a PBT margin of approximately 6.76%.

EBITDA Margin

Standalone EBITDA margin was 12.92% in FY24, up from 12.05% in FY23. Standalone EBITDA for H1 FY26 grew 17.31% YoY to INR 23.86 Cr from INR 20.34 Cr.

Capital Expenditure

Historical capital expenditure for FY25 was INR 26.85 Cr, primarily for the purchase of fixed assets to support manufacturing operations.

Credit Rating & Borrowing

The company holds a short-term rating of IVR A2+ from Infomerics. Interest on borrowings for FY25 was INR 23.91 Cr. Based on standalone debt of INR 167.11 Cr in FY24, the implied average borrowing cost is approximately 14.3%.

⚙️ Operational Drivers

Raw Materials

Specific raw material names are not listed, but raw material consumption accounted for INR 238.58 Cr in FY25, representing 61.6% of total revenue.

Capacity Expansion

Current annual installed capacity is 12,000 tractors and 1,280 cranes (increased from 720 cranes previously mentioned) at the Baddi, Himachal Pradesh plant.

Raw Material Costs

Raw material costs were INR 238.58 Cr in FY25, a 9.2% increase from INR 218.48 Cr in FY24, representing 61.6% of revenue.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Growth is driven by segment diversification into Pick-N-Carry cranes (9-30 tonnes) and mobile tower cranes, alongside its core tractor business. The company utilizes its NBFC subsidiary, Barota Finance (assets of INR 173.32 Cr), to facilitate customer purchases. Recent H1 FY26 growth of 26.22% was supported by a 54.17% surge in quarterly tractor segment revenue.

Products & Services

Tractors, Pick-N-Carry cranes (9-30 tonnes), mobile tower cranes, harvester combines, engines, and diesel gensets.

Brand Portfolio

Indo Farm (tractors) and Indo Power (cranes).

Market Expansion

The company is expanding its crane segment, which contributed INR 44.93 Cr to revenue in Q2 FY26.

🌍 External Factors

Industry Trends

The industry is shifting toward higher mechanization in agriculture and increased infrastructure spending, which benefits the crane segment. The tractor industry remains cyclical and dependent on rural liquidity.

Competitive Landscape

The industry is characterized by stiff competition from established tractor and construction equipment manufacturers.

Competitive Moat

Moat is derived from a long track record (since 1994), a widespread dealer network, and the strategic advantage of having an in-house NBFC (Barota Finance) to provide credit, which is a critical sales driver in rural markets.

Macro Economic Sensitivity

Highly sensitive to agricultural GDP and rural development budgets. Government commitment to agri-mechanization and infrastructure is expected to aid long-term volumes.

Consumer Behavior

Demand is driven by farmer income levels and the availability of financing for agricultural equipment.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to manufacturing standards for tractors and cranes, as well as NBFC regulations for its subsidiary, Barota Finance Limited.

Taxation Policy Impact

The company paid direct taxes of INR 5.23 Cr in FY25.

Legal Contingencies

The company has provided a corporate guarantee to a group company with an outstanding limit of INR 120.00 Cr, which represents a significant contingent liability.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the cyclicality of the tractor industry and financial exposure to group companies through corporate guarantees (INR 120 Cr limit).

Geographic Concentration Risk

Manufacturing is concentrated at a single location in Baddi, Himachal Pradesh.

Third Party Dependencies

Dependency on a widespread dealer network for sales and service across India.

Credit & Counterparty Risk

Credit risk is managed through Barota Finance Limited, which had total assets of INR 173.32 Cr as of March 31, 2025.