Tractors industry

4 companies · ₹37,968 cr · 4 with AI deep dives · Q1FY27 report

Record domestic volumes, but commodity inflation consumes operating leverage sector-wide

Turning upmargin troughed at 11.0% and has risen for 7 quarters to 11.3%, on positive revenue growth

Revenue YoY: +26.1%
EBITDA margin: 11.3%; -160bps YoY
Price, 1 year: -21.7%; 0% of names up
P/E vs own 5y: -16.0%; 26.0x now

Exhibit 1The quarter in numbers

constant panel of 3 companies above ₹500 cr

aggregate revenue (₹ cr)EBITDA margin (right axis)

Metric	Jun 26	Mar 26	QoQ	Jun 25	YoY	Peak	vs peak
Revenue	3,631 cr	3,431 cr	+5.8%	2,879 cr	+26.1%	3,701 cr	-1.9%
EBITDA margin	11.3%	13.0%	-170bps	12.9%	-160bps	13.2%	-190bps

Revenue

Jun 26: 3,631 cr
Mar 26: 3,431 cr
QoQ: +5.8%
Jun 25: 2,879 cr
YoY: +26.1%
Peak: 3,701 cr
vs peak: -1.9%

EBITDA margin

Jun 26: 11.3%
Mar 26: 13.0%
QoQ: -170bps
Jun 25: 12.9%
YoY: -160bps
Peak: 13.2%
vs peak: -190bps

Breadth: 100% of 3 companies grew revenue year on year (was 100% a quarter earlier) and 0% expanded margin (was 67%).

Exhibit 2What it costs

25.18x - 29.54x across the panel today

The median name trades at 26.0x, -16.0% against this industry's own 5-year median of 31.0x, and -37.6% against its own peak of 41.7x.

Exhibit 3Structure

₹37,968 cr

Escorts Kubota Ltd is 88.7% of this industry by market cap. The top 5 are 100% and the top 10 are 100%.

mid 1small 1micro 23 above ₹500 cr

Exhibit 4Screen

P/E below the sub-industry median of 26.01x, 5y ROCE above its median of 13.26%, and at least 2 growth triggers stated on the latest earnings call.

Which names clear this screen is premium

The screen runs on stated growth triggers from the latest earnings calls - the same guidance data the stock screener reserves for premium. Premium names every company in this industry that is cheap against its own median and has the triggers behind it.

See plans →

Exhibit 5Coverage (4 of 4)

Every company here with a deep dive, topped up by market cap. The rest of the industry is in the appendix.

Company	Mcap	P/E	EV/EBITDA	ROCE	Margin	Rev YoY	Read
Escorts Kubota Ltd	₹32,411 cr	23.4x	15.6x	14.4%	17.2%	+28.3%	Unlock
VST Tillers Tractors Ltd	₹3,507 cr	32.2x	-	12.4%	13.7%	+11.0%	Unlock
Indo Farm Equipment Ltd	₹668 cr	26.8x	12.6x	8.5%	14.2%	+14.5%	Unlock
Gurunanak Agriculture India Ltd	₹46 cr	7.6x	4.9x	18.6%	23.1%	-	Unlock

Escorts Kubota Ltd

Mcap: ₹32,411 cr
P/E: 23.4x
EV/EBITDA: 15.6x
ROCE: 14.4%
Margin: 17.2%
Rev YoY: +28.3%

Unlock

VST Tillers Tractors Ltd

Mcap: ₹3,507 cr
P/E: 32.2x
EV/EBITDA: -
ROCE: 12.4%
Margin: 13.7%
Rev YoY: +11.0%

Unlock

Indo Farm Equipment Ltd

Mcap: ₹668 cr
P/E: 26.8x
EV/EBITDA: 12.6x
ROCE: 8.5%
Margin: 14.2%
Rev YoY: +14.5%

Unlock

Gurunanak Agriculture India Ltd

Mcap: ₹46 cr
P/E: 7.6x
EV/EBITDA: 4.9x
ROCE: 18.6%
Margin: 23.1%
Rev YoY: -

Unlock

Exhibit 6What managements said

from Agricultural, Commercial & Construction Vehicles earnings calls · as of 2026-06-30

headwindCommodity cost inflation compressing margins across all sub-segments7 managements

Steel, aluminium, copper, rubber, and in some cases freight and polymers are simultaneously elevated. TMCV reported a 340-bps variable cost headwind of ₹649 crore that more than…

TMCV (Q1FY27): “EBITDA was ₹2,300 crore at a margin of 11.7%, down 60 basis points YoY. The moderation is…”

tailwind6 managements mixed5 managements headwind4 managements headwind2 managements tailwind3 managements

5 more themes from this quarter's earnings calls are locked. A free account opens 3 full reports a quarter: every theme with verbatim management quotes, the demand picture, companies running against the tide, and the regulatory & disruption watch. Sign up free →

Exhibit 7Outlook

The outlook and what resolves next quarter

Where these managements said things are heading, and the dated, checkable events that would change it. Free with an account - 3 full reports a quarter.

Create a free account →

AppendixThe other 0 companies

1-0

sort: mcap · composite · name