Company Overview

Established in 1994 and headquartered in Chandigarh, Indo Farm Equipment Limited is ISO 9001:2015 certified. The company operates an advanced manufacturing facility in Baddi, Himachal Pradesh, with 12,000 acres of existing and upcoming manufacturing facilities and an installed capacity of 1,280 cranes and 25,000+ tractors per annum.

Product Portfolio

The company manufactures pick & carry cranes (9-30 tons) and tractors (16-110 HP) under the "Indo Farm" and "Indo Power" brands. The business is organized into three segments: Agriculture (tractors), Construction and Infrastructure (cranes), and Rural & Infrastructure Equipment Finance (through subsidiary Barota Finance Ltd).

Manufacturing Capabilities

The company emphasizes deep backward integration with critical components manufactured in-house:

  • Crane components: 65%+ in value terms manufactured in-house including chassis, yoke, counter-weight, hydraulic cylinder, winch, brake drums, and outriggers
  • Tractor components: 30%+ in value terms manufactured in-house including engine block & engine head, transmission housings, transmission gears, hydraulic housing & components, clutch housing, and front axle bracket

The manufacturing facility includes foundry division, tractor assembly line, cylinder block machining centre, gear shop, crane assembly line, press shop, and testing facilities.

Q1FY27 Consolidated Financial Performance (Unaudited, ₹ Lakhs)

  • Revenue from Operations: ₹11,024.30 lakhs
  • Other Income (Net): ₹105.05 lakhs
  • Total Income: ₹11,129.35 lakhs
  • Operating Expense: ₹9,578.00 lakhs
  • EBITDA: ₹1,551.35 lakhs (EBITDA margin: 14.07%)
  • Depreciation & Amortisation: ₹362.43 lakhs
  • Finance Cost: ₹405.11 lakhs
  • Profit Before Tax: ₹783.81 lakhs
  • Tax: ₹218.06 lakhs
  • Profit After Tax: ₹565.74 lakhs (PAT margin: 5.13%)

Quarterly Comparison

Q1FY27 vs Q1FY26:

  • Total Income: Increased 13.55% from ₹9,801.50 lakhs
  • Operating Expense: Increased 15.26% from ₹8,309.62 lakhs
  • EBITDA: Increased 3.99% from ₹1,491.88 lakhs
  • PAT: Increased 4.12% from ₹543.37 lakhs

Q1FY27 vs Q4FY26:

  • Total Income: Decreased 17.66% from ₹13,516.44 lakhs
  • Operating Expense: Decreased 16.98% from ₹11,537.04 lakhs
  • EBITDA: Decreased 21.63% from ₹1,979.40 lakhs
  • PAT: Decreased 35.11% from ₹871.84 lakhs

Operational Highlights

  • Distribution network: 225+ tractor dealers and 25+ crane dealers across India
  • Export presence: Products exported to over 30 countries worldwide
  • The tractor division is described as the company's oldest and well-established business segment providing steady operational support

New Crane Project Update

  • Location: Bhud Site, Baddi
  • Current status: Project erection is in full swing
  • Civil construction work of the main shed, including the Pre-Engineered Building (PEB) structure and related infrastructure, is in progress
  • Commercial production expected to commence in the current FY (FY27)
  • Orders for major machinery have been placed and procurement is in progress

The new tower crane project is targeted at India's expanding construction sector, specifically focusing on affordable housing projects in Metro and Tier II cities.

Subsidiary Information: Barota Finance Ltd

  • Wholly-owned subsidiary of Indo Farm Equipment Limited
  • RBI-registered Non-Deposit Taking NBFC
  • Primary business: Financing tractors sold by Indo Farm and other brands, as well as pre-owned tractors for all brands
  • Current loan book: Approximately ₹135 crores
  • Active customers: 5,000+
  • Future plans: Intends to diversify into other verticals beyond tractor financing

Investment Rationale Highlights

  • Strong entry barriers due to capital-intensive industry with 1,800+ components per tractor/crane, long product cycles, strict compliance norms, and strong brand positioning
  • Integrated manufacturing with strong in-house production of key components
  • Favorable industry landscape with tractor industry expected to grow at 6-7% CAGR and construction equipment at 5-7% CAGR
  • Experienced leadership led by first-generation promoters with second-generation operations team
  • R&D and innovation focus through technology partnerships
  • Diverse product range across tractors and construction equipment segments

Geographical Footprint

Indo Farm exports its products to over 30 countries worldwide. Within India, the company operates through a comprehensive dealer network covering key states.