VST Tillers Tractors Limited (NSE: VSTT) reported a standalone net profit of ₹30.7 crore for the quarter ended December 31, 2025. This figure represents a sharp increase from the ₹1.7 crore recorded in the same period last year. Revenue from operations for the third quarter rose 43.4% year-on-year to ₹314.3 crore. Operational EBITDA reached ₹40.7 crore, reflecting a 107.7% growth compared to the previous year.
Operational & Financial Performance
Company’s Q3 revenue increased 43.4% to ₹314.3 crore. Net profit grew to ₹30.7 crore from ₹1.7 crore year-on-year. Power tiller and weeder volumes rose 85.2% and 107.6% respectively. Results include a ₹1.66 crore impact from new labor codes. The company’s EBITDA margin improved to 12.9% from 8.9% in the prior-year quarter. Net profit margins rose from 0.8% to 9.6% during the same period. Financial results included a fair value gain on investments of ₹5.45 crore, compared to a loss of ₹11.04 crore in the third quarter of the previous fiscal year. Employee benefit expenses for the quarter included ₹1.22 crore in share-based payments.
Nine-Month & Volume Context
For the nine months ended December 31, 2025, consolidated total income reached ₹947.45 crore. Standalone revenue for the nine-month period grew 31.6% to ₹911.9 crore. Nine-month net profit stood at ₹100.7 crore, a 44.9% increase year-on-year.
Sales volumes showed strong growth in domestic categories during Q3 FY26. Power tiller volumes increased 85.2% to 12,545 units. Power weeder volumes grew 107.6% to 3,429 units. Domestic tractor sales rose 32.0% to 1,341 units. However, tractor exports declined 16.2% to 320 units during the quarter.
Industry Accolades
VST Industries secured multiple honors at the CII Design Excellence Awards 2025, with the VST Electric Weeder and VST FEN featured among the Top 100 Designs, while the Ranger Weeder Series won in the “Design for Social Impact” category. The company was also named Jury Challenger at The Challengers Trophy Competition 2025, organized by the Confederation of Indian Industry (CII).
Policy Impact
India’s new labor codes, effective November 21, 2025, consolidated 29 regulations into 4 and led to a one-time incremental cost of ₹165.95 lakh. The company recognised the amount under Employee Benefits Expense as a provision for employee benefits for both the quarter and the nine-month period ended December 31, 2025.
The one-off charge weighed on margins. Q3 FY26 operational EBITDA margin was 12.9%, but would have been 13.5% excluding the labour-code impact. For the nine-month period, EBITDA margin would have been 13.2% versus the reported 13.06% absent this regulatory expense.
SWOT Analysis
Strengths:
- Significant year-on-year revenue and net profit growth.
- Substantial expansion in EBITDA and net profit margins.
- Strong volume growth in power tillers and weeders.
- Recognition for design excellence in the VST FEN and VST Electric Weeder series.
Weaknesses:
- Ongoing contraction in tractor export volumes, which fell 23.0% over the nine-month period.
Opportunities:
- Growth in domestic tractor demand.
Threats:
- Incremental costs from the consolidation of 29 labor regulations into four new codes.
- Market-linked volatility affecting the fair value of investments.
Investor Focus
Investors are tracking the sustainability of the triple-digit growth in the power weeder and tiller segments. The ability to maintain 13% EBITDA margins despite regulatory cost increases is a key performance indicator. Risks include the continued downturn in export markets and potential long-term increases in employee benefit provisions under new labor regulations.