Indo Farm Equipment Posts 14% Revenue Growth for FY26, Eyes 20-25% Jump in FY27

Indo Farm Equipment's revenue from operations for FY26 increased by 14% to ₹419.54 crore from ₹366.77 crore in FY25. The company has provided a growth outlook of 20–25% for the upcoming fiscal year FY27, with an expected operating EBITDA margin of approximately 12.5%.

Reader Takeaway: Tractor segment drives revenue growth; focus on working capital reduction is key.

What just happened

Indo Farm Equipment Limited announced its financial results for the fourth quarter and full year ending March 31, 2026 (FY26). For the full fiscal year, revenue grew 14% to ₹419.54 crore. The company also issued guidance for FY27, expecting revenue to grow between 20% and 25%, with an operating EBITDA margin target of around 12.5%.

Key highlights include a trial export order worth approximately ₹6 crore and ongoing capacity expansion for tower and pick-and-carry cranes with a total capex of over ₹70 crore, of which ₹25 crore has already been incurred.

Why this matters

This performance indicates a rebound in the company's core business, particularly in the tractor segment. The FY27 growth guidance signals management's confidence in sustained expansion. The focus on capacity expansion and export orders suggests a strategy to diversify revenue streams and enhance market reach. However, the high working capital days remain a point of concern.

The backstory

In FY26, the tractor segment revenue increased significantly to ₹201.45 crore from ₹141.02 crore in FY25, driven by 3,006 units sold. This growth was attributed to addressing past financing constraints by investing in a captive finance entity. Conversely, the crane segment saw a 3% YoY revenue decline to ₹218.09 crore in FY26 from ₹225.05 crore in FY25, with 1,003 units sold. Management cited the shift to new emission norms (Term III to Term V) and logistical challenges at project sites for this temporary de-growth.

What changes now

The company is actively investing in its Bhud site for a tower and pick-and-carry crane project. This expansion is expected to bolster the crane segment's performance in the future. The recent trial export order provides an avenue for international market penetration. Management is also focused on improving operational efficiency by targeting a reduction in working capital days from the current 307 days to under 200 days by FY28–29.

Risks to watch

Margin pressure is a potential risk, as indicated by the guidance of 12.5% EBITDA margin, which could be impacted by costs associated with new product introductions and market entries. The exceptionally high working capital days (307 days) also pose a risk if not managed effectively, as it ties up significant cash flow.

Context metrics (time-bound)

• Revenue FY26: ₹419.54 crore (up 14% YoY)
• EBITDA FY26: ₹53.50 crore
• Tractor Volume FY26: 3,006 units
• Crane Volume FY26: 1,003 units
• Capex Incurred: ₹25 crore (of ₹70+ crore total)
• Working Capital Days: 307 days
• FY27 Revenue Guidance: 20–25% growth
• FY27 EBITDA Margin Guidance: ~12.5%

What to track next

Investors will be closely watching the execution of the new crane facility and the successful commercialization of tower cranes. The company's ability to significantly reduce working capital levels will be a critical factor for financial health and shareholder returns. The performance of the export order will also be key.