VST Tillers Tractors Charts Ambitious Growth Path Towards ₹2,000 Crore Revenue by FY26
VST Tillers Tractors is setting an ambitious trajectory, steadfast in its commitment to achieving a ₹2,000 crore revenue target for the fiscal year 2026 (FY26). This significant milestone is underpinned by robust growth strategies across its core operational segments: power tillers, tractors, and power weeders. The company’s CEO, Antony Cherukara, affirmed this target in an interview with CNBC-TV18, also outlining a near-term goal of over 20% revenue growth for FY25.
Building on a solid first half of FY25, where the company recorded ₹500 crore in revenue between April and September, VST Tillers Tractors anticipates strong momentum in the latter half of the fiscal year. This optimism is fueled by favourable agricultural conditions, with good rains expected to bolster demand. The company projects varied yet strong growth across its domestic product lines for the current fiscal year:
- Power tiller business: Anticipated 10 to 15% growth.
- Tractors: Looking at 15% to 20% growth.
- Power weeder business: Expected to double its business, indicating significant acceleration in this segment. Additionally, VST Tillers Tractors is actively expanding its domestic footprint, particularly targeting the northern markets in India with higher horsepower tractors. The company is also on track to meet or nearly meet its target of 1,000 units for its higher tractor segment, under the Zetor JV, for the current year.
A pivotal element of VST Tillers Tractors’ long-term growth strategy is its aggressive push into international markets, particularly Europe and the US. Exports, which contributed approximately 12-13% of the company’s revenue last year, are projected to expand significantly to 25% of overall revenue within the next three years. This marks a substantial increase from just 3% three years prior. In Europe, despite challenges like war and rising logistics costs, VST Tillers Tractors expects at least 10% growth, supported by new product launches. The company is also making strategic inroads into the US market, having announced the launch and registered companies, with product launches slated for Q4 of next year. This expansion into the US will feature compact tractors and electric machines.
From a financial health perspective, VST Tillers Tractors expects its profit margins to remain within the 11-13% range for FY25. This guidance accounts for significant revenue expenditure related to entering new markets, both domestically in India’s northern regions and internationally in the US. The company reports no issues with receivables from governments, with pending payments from Q2 expected to clear in Q3.
Beyond organic growth, VST Tillers Tractors is exploring opportunities for inorganic growth and geographical expansion. While no specific deals have been finalised or factored into the current ₹2,000 crore FY26 target, these initiatives are considered vital for chasing down the broader ₹3,000 crore long-term vision. Adding to its strategic financial levers, the company owns 25 acres of valuable land in Bangalore. While no immediate decision on monetisation has been made, VST Tillers Tractors may consider monetising this asset to fund future growth initiatives should the need for capital arise. The increasing real estate prices in Bangalore are seen as a favourable development for the company’s asset value.
In summary, VST Tillers Tractors is confidently moving towards its ambitious revenue targets, driven by a multi-pronged strategy that encompasses robust domestic market growth, aggressive international expansion, prudent financial management, and a readiness to explore strategic inorganic opportunities. The company’s leadership remains optimistic about its trajectory, viewing the ₹2,000 crore target for FY26 as “definitely on the cards”.
