Summary
Indo Farm Equipment Limited - Q3 FY2026 Earnings Call Summary Thursday, February 12, 2026, 4:00 PM IST
Event Participants
Executives 6 Anshul Khadwalia (Whole-time Director), Navpreet Kaur (Company Secretary), Ranbir Singh Khadwalia (Chairman), S.M. Singla (Finance Head), Shubham Khadwalia (Executive VP), Varun Sharma (CFO)
Analysts 7 Anil Nahata, Dipanshu Suman, Dolly Chaudhary, Kaushal Sharma, Meet Mehta, Pradyum Kothari, Pushkar Jain
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations (Q3) | ₹100.64 crores | +10.81% YoY; Growth driven primarily by strong tractor segment performance. |
| Revenue from Operations (9M) | ₹290.96 crores | +20.43% YoY; Consistent expansion in market reach post-IPO. |
| EBITDA (Q3) | ₹12.16 crores | -1.06% YoY; Margins impacted by aggressive hiring in marketing and competitive pricing in new markets. |
| EBITDA (9M) | ₹36.02 crores | +10.39% YoY; Reflects operational scaling despite Q3 pressure. |
| Tractor Revenue (Q3) | ₹47.91 crores | +88.6% YoY; Significant volume growth behind new dealer additions and NBFC support. |
| Crane Revenue (Q3) | ₹52.73 crores | -19.4% YoY; Temporary slowdown due to emission norm shift (TREM-3 to TREM-5). |
| Tractor Volume (9M) | 2,000 units | Growth from 1,200 units YoY; Outperforming industry trends via geographic expansion. |
| Crane Volume (9M) | 705 units | Marginal decline from 735 units YoY due to emission norm transition. |
| Debt (Term Loans) | ₹7-8 crores | Reduced by ₹15 crores this year; Management targeting zero term debt by next year. |
Geographic & Segment Commentary
- Tractor Segment: Revenue surged 88% in Q3, supported by geographic expansion into Karnataka and Maharashtra. The company added 60 dealers in 9M FY26, bringing the total to 200, with a long-term target of 500 dealers. Management noted strong support from their captive NBFC and expects 50% revenue growth for the full year FY26.
- Crane Segment: Experienced a temporary blip as the industry transitioned from TREM-3 to TREM-5 emission norms, resulting in a 10-15% price hike. Current facilities are operating at 100% utilization. Management expects growth to normalize from January 2026 following market acceptance of the new engine technology.
- International Markets: Commenced export activities following participation in the Agritech exhibition in Germany. Initial trial orders received for 48 tractors from Germany and smaller orders from the UK, marking a strategic entry into the European market.
Company-Specific & Strategic Commentary
- New Production Facility: Investing ₹70-75 crores (funded via IPO proceeds) into a 30-acre site for construction equipment. Civil work completes in March 2026, with commercial production starting Q1 FY27. This facility adds capacity for 3,600 pick-and-carry cranes and 240 tower cranes.
- Tower Crane Launch: Entering the tower crane market with trial production ready by March 2026 and commercial sales starting Q2 FY27. Management projects ₹60-70 crores revenue from this segment in the first year.
- Dealer Network Expansion: Target to reach 60 crane dealers to achieve pan-India coverage (currently at 25). For tractors, the company is moving beyond its traditional Northern India stronghold into the South and West.
- Backward Integration & Product Innovation: Management highlighted being the first to launch air brake systems in “Hydra” machines and offering superior boom heights to compete with established players like Escorts and ACE.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Total Revenue Growth | 25% YoY (FY26) | Driven by 50% growth in tractors and 10% in cranes. |
| FY27 Overall Revenue | ₹700 - ₹800 crores | Reflects full-year contribution from new crane facility and tractor growth. |
| FY27 Crane Volume | 2,000 units | Incremental 1,000 units from the new facility over existing volumes. |
| EBITDA Margin | 12.5% - 13% (FY26) | Near-term pressure from marketing spend; expected to rise by 150-200 bps in FY27. |
| PAT Margin | 6.5% - 7.0% | Steady outlook as operational leverage kicks in. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Shift | The transition to TREM-5 norms caused a temporary volume dip and 10% price increase; failure of the market to absorb higher costs could impact crane volumes. |
| Capacity Constraints | The crane segment is currently at 100% utilization in existing plants, making growth entirely dependent on the timely commissioning of the new facility in Q1 FY27. |
| Competitive Intensity | Entering new geographies (South and West India) requires aggressive pricing and higher manpower costs, which has already exerted downward pressure on Q3 margins. |
Q&A Highlights
Tractor Growth Drivers
- Question: What is driving the 88% growth in tractors despite a general industry slowdown? (Pushkar Jain)
- Answer: Growth is driven by expansion into new markets like Maharashtra and Karnataka, increased investment in the marketing team, and financing support from our NBFC (Ranbir Singh Khadwalia).
Crane Margin Pressure
- Question: Why did EBITDA margins fall from 16% to 12.7%? (Kaushal Sharma)
- Answer: Major drivers were the recruitment of heavy manpower for the marketing team and offering deep discounts/competitive pricing to seed products in new geographic zones (Ranbir Singh Khadwalia).
New Facility Potential
- Question: What is the peak revenue potential of the new plant? (Pushkar Jain)
- Answer: The new facility can produce 3,600 pick-and-carry cranes (avg price ₹25 lakhs) and 240 tower cranes (avg price ₹60 lakhs), implying a peak potential of nearly ₹1,000 crores once fully ramped up (Ranbir Singh Khadwalia).
Dealer Qualification
- Question: How is the dealer expansion progressing against the 500-dealer target? (Kaushal Sharma)
- Answer: We received 175 applications post-IPO but selected only 60 based on quality. We currently have 200 dealers and are on track to hit 500 ahead of schedule (Anshul Khadwalia).
Key Takeaway
Indo Farm Equipment delivered a mixed Q3 FY26, characterized by high-octane growth in the tractor segment (+88% YoY) contrasted by a cyclical slowdown in cranes (-19% YoY) due to TREM-5 emission norm transitions. The company is in a heavy investment phase, utilizing ₹70-75 crores of IPO proceeds to build a massive new construction equipment facility that will more than triple crane capacity and introduce a new tower crane product line by Q2 FY27. While aggressive marketing spend and entry-level pricing in new geographies have compressed EBITDA margins to 12.77%, management remains confident in a ₹700-800 crore top-line for FY27 as capacity constraints ease. The transition to a zero-term-debt status by next year and the expansion into European export markets mark a significant strategic shift from a regional player to a diversified equipment manufacturer. Investors should monitor the timely commissioning of the new plant in Q1 FY27 as the primary catalyst for the next leg of growth.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: