Indo Farm tractor surge
Indo Farm reported tractor sales rising about 88% year‑on‑year in Q3, but the company is carrying very long inventory and reported compressed margins. (x.com). The report noted inventory days stretched to roughly 334 days, signalling supply‑chain or demand‑mix stress even as volumes climbed. (x.com)
Indo Farm sold far more tractors in the December quarter, but the company’s profit margins narrowed as inventory stayed unusually high. (indofarm.in) In its earnings call for the quarter ended December 31, 2025, Indo Farm said tractor revenue rose to 47.91 crore rupees from 25.4 crore rupees a year earlier, an increase of about 88%. Total revenue from operations rose 10.81% year on year to 100.64 crore rupees. (indofarm.in) The same quarter showed strain elsewhere in the business. The crane segment’s revenue fell about 19% year on year to 52.73 crore rupees from 65.43 crore rupees, while earnings before interest, taxes, depreciation and amortization, including other income, slipped to 12.16 crore rupees from 12.29 crore rupees. (indofarm.in) That mix matters because Indo Farm is not only a tractor maker. The company describes itself as a manufacturer of tractors from 16 to 110 horsepower and pick-and-carry cranes from 9 to 30 tons, with production centered in Baddi, Himachal Pradesh. (indofarm.in) A jump in one segment can lift unit sales without lifting profitability at the same pace. Indo Farm told investors it still expects full-year 2025-26 revenue growth of about 25%, with tractor revenue up more than 50% and overall earnings before interest, taxes, depreciation and amortization margins in a 12.5% to 13% range. (indofarm.in) The inventory figure drew attention because long inventory days usually mean goods are sitting in the system for longer before being sold. The investor presentation released on February 5, 2026 flagged inventory days at roughly 334 days for the nine months of fiscal 2025-26. (indofarm.in) Indo Farm is also still a newly listed company in India’s public markets. Its annual report says fiscal 2024-25 was its first annual report after its initial public offering, and a stock exchange filing says its shares were listed on the National Stock Exchange of India and BSE on January 7, 2025. (indofarm.in 1) (indofarm.in 2) The result is a split picture: tractors are growing quickly, cranes were weaker in the quarter, and the balance sheet is carrying stock for much longer than investors usually like to see. Indo Farm’s next few quarters will show whether the sales surge turns into faster cash conversion and steadier margins. (indofarm.in)
