Smallcap tractor stock up 10% on strong Q1, nears record high. Do you own?

The company said the favorable and well distributed rainfall has provided a strong momentum to agricultural operations.

VST Tillers Tractors share price today: Shares of VST Tillers Tractors, a pioneer in compact agricultural machinery in India, hit over six-month high of ₹5,293.65, as they rallied 10 per cent on the BSE in Tuesday’s intra-day trade after reporting a strong earnings for the quarter ended June 2025 (Q1FY26) with a positive outlook. 

 

The stock price of this smallcap tractor company is quoting at its highest level since January 2025. It is trading close to its record high level of ₹5,410.05 touched on January 1, 2025. The stock has bounced back 84 per cent from its 52-week low of ₹2,875 touched on April 7, 2025.

 

At 11:15 AM, VST Tillers was quoting 7 per cent higher at ₹5,143, as compared to 0.17 per cent decline in the BSE Sensex.

 

VST Tillers Tractors Q1 results 

 

The company achieved its highest-ever turnover for Q1FY26 at ₹282.5 crore, against ₹190.6 crore in Q1FY25, on back of strong volume growth. The company’s power tiller segment reported 92 per cent year-on-year (Y-o-Y) growth in volume at 11,701 units, as compared to 6,089 units in Q1FY25. Total sales volume grew 68 per cent Y-o-Y at 15,305 units.

 

Operational earnings before interest, tax, depreciation, and amortisation (Ebitda) jumped 180 per cent Y-o-Y at ₹37.50 crore; margins expanded by 630 bps Y-o-Y at 13.3 per cent. Profit after tax rose 95 per cent Y-o-Y at ₹44.6 crore against ₹22.8 crore in a year ago quarter. 

 

The performance was driven by sustained land preparation activities, supported by robust cash flows in rural markets following the conclusion of Rabi crop harvesting. Additionally, the normal progression of monsoon across most regions further contributed to good demand during the onset of sowing for the Kharif season.  Check List of Q1 results today 

VST Tillers Tractors outlook

 

After a relatively subdued FY24, the Indian tractor industry witnessed a turnaround in FY25 driven by favourable weather conditions, positive terms of trade for farmers and various government initiatives. 

 

VST Tillers Tractors in Q1FY26 investor presentation said that overall outlook is positive. The favourable and well distributed rainfall has provided a strong momentum to agricultural operations. Q2 indications are good considering the July 2025 sales volume. The operational Ebitda is expected to remain in the range of 11-13 per cent, the company said. However, global geopolitical challenges continue, it added.

 

Meanwhile, the Indian tractor industry is expected to benefit from the government's budgetary focus on rural development and allied agricultural activities. Factors such as improved crop price realisation, better replacement and construction demand and indication of above-normal monsoon are likely to drive growth in domestic tractor sales. Further, the demand for mechanisation continues as shortage of agricultural labour is expected to increase labour costs. 

 

Opportunities

 

The company has opportunities arising from various factors. Government initiatives promoting farm mechanisation, along with the modernisation of farming practices, are driving the demand for technologically advanced equipment. 

 

The declining availability of agricultural labor is increasing the need for mechanisation, creating a favourable market environment. Additionally, there is a focus on small and marginal farmers, who represent a major market segment. The growing need for affordable and appropriately sized machinery to cater to specific farmer needs offers further opportunities for the company.

 

About VST Tillers Tractors

 

With a strong focus on research and development, VST Tillers Tractors offers a wide range of products including power tillers, compact tractors, engines, transmissions, power reapers, and precision components. VST Tractors are not only dominant in the Indian market but also exported to European, Asian, and African markets, meeting the latest EU standards.

 

With a commitment to continuous innovation and growth—driven by strategic initiatives, new business prospects, global ventures, and brand initiatives, the VST team aspires to achieve 2X growth in its Tractor Business Segment.