Indo Farm Equip. Q1 FY27 Results (NSE: INDOFARM)
Signal: Growth reaccelerated
The read
The growth trajectory re-accelerated to 14.5% YoY revenue growth from 3.1% in Q4FY26, led by tractors, and EBITDA margin improved 42bps YoY to 14.1%; however, gross margin compressed 266bps as raw material cost reached 58.1% of revenue, limiting EBITDA growth to 4.0% and PAT growth to 4.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹110.24 Cr | 14.5% | -17.7% |
| EBIT | ₹11.89 Cr | -0.3% | |
| Net profit | ₹5.66 Cr | 4.2% | |
| EPS | ₹1.18 | 4.4% | |
| EBIT margin | 14.1% |
P&L walk
Revenue increased to ₹11,024.30 lakh, +14.5% YoY, led by tractors, but EBITDA grew only 4.0% to ₹1,551.00 lakh as gross margin compressed 266bps; lower finance cost and a clean tax profile supported PAT growth of 4.2% to ₹565.74 lakh.
Segments
Tractors were the momentum driver, with revenue up 36.3% YoY to ₹5,207.54 lakh and segment result up 15.1% to ₹375.34 lakh, while cranes revenue fell 0.4% and the NBFC result declined 47.3% sequentially to ₹227.05 lakh.
Key positives
- Consolidated revenue rose 14.5% YoY to ₹11,024.30 lakh, an acceleration from 3.1% YoY growth in Q4FY26, led by tractor revenue growth of 36.3%.
- EBITDA margin improved 42bps YoY to 14.1% as employee and other expenses grew 10.8% and 2.4% respectively, both slower than revenue growth of 14.5%.
- Finance costs declined 8.2% YoY to ₹405.11 lakh, with EBITDA covering finance costs by approximately 3.8 times.
- EPS grew 4.4% to ₹1.18 versus PAT growth of 4.2%, indicating no visible dilution.
Key concerns
- Gross margin compressed 266bps YoY to 40.8% as raw material cost rose to 58.1% of revenue from 57.4%; raw material cost increased 15.9% while revenue grew 14.5%, indicating incomplete cost absorption.
- EBITDA growth of 4.0% lagged revenue growth of 14.5%, so the 42bps EBITDA-margin improvement was not operating leverage.
- Cranes, the larger segment by assets, recorded revenue of ₹5,285.68 lakh, down 0.4% YoY, while the NBFC segment result fell 47.3% sequentially to ₹227.05 lakh.
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