Indo Farm Equipment Limited, headquartered in Baddi, Himachal Pradesh, started its journey in 2000 through a technical collaboration with Ursus of Poland. Over the years, it has grown steadily and today stands out as a key player in the farm machinery space, offering tractors, cranes, and a wide range of agricultural implements.
- About
- Industry Overview
- Journey
- Board of Director
- Shareholding Pattern
- Business Segments
- Revenue Segments
- Cost Structure
- Financials
- Management Discussion & Concall
- Strengths & Weaknesses
(A) About Indo Farm Equipment Ltd. | Stock Analysis
Indo Farm Equipment Ltd, founded in 1999, is a prominent Indian manufacturer of tractors, cranes, and agricultural machinery with a growing footprint in both domestic and international markets. The company’s diverse product portfolio is built on performance, durability, and efficiency, addressing the evolving needs of farmers and infrastructure developers alike. Supported by strong in-house R&D and modern manufacturing facilities, Indo Farm is dedicated to delivering innovative mechanized solutions that empower the agriculture sector while driving growth in construction and infrastructure.
(B) Industry Overview
- The global mobile crane market will expand from USD 21.10 billion in 2024 to USD 29.10 billion by 2029, growing at a CAGR of 6.65%.
- The global tractor market will increase from USD 84.80 billion in 2024 to USD 114.50 billion by 2029, with a CAGR of 5.90%.
- The global construction equipment market will grow at a 7.6% CAGR from 2024–2033, driven by infrastructure development and rapid urbanization.
- Similarly, the domestic agricultural equipment market will expand at an 8.5% CAGR through 2029, supported by rising farm mechanization and higher productivity demand.
- However, Indo Farm operates in a highly competitive tractor market, where several established players like Mahindra, Escort, John Deere etc, create pricing and scale pressures
- On the other hand, the company has built a strong position in the crane segment, ranking among the top three players in Pick-N-Carry cranes in India.
- Therefore, its leadership in cranes, combined with proven expertise in tractors and engines, strategically positions Indo Farm to capitalize on growth opportunities across both agriculture and construction equipment cycles.
(C) Journey
(D) Board of Directors of Indo Farm Equipment Ltd.
(E) Shareholding Pattern of Indo Farm Equipment Ltd.
(F) Business Segments of Indo Farm Equipment Ltd. | Stock Analysis
1. Agricultural Equipment
Tractors
Indo Farm began its tractor journey with a single 50 HP model and today manufactures a wide range from 16 HP to 110 HP. Over the years, the company has also focused on giving farmers machines that are powerful, fuel-efficient, easy to operate, and simple to maintain. Its tractors come with features like power or manual steering, different braking options, reverse PTO, and heavy-duty hydraulic lifts that are also useful for haulage. Tractors contributed 38.44% of revenue in FY25, compared to 51.92% in FY24.
Other Farming Equipment & Components
Alongside tractors, Indo Farm also makes implements like Harvesters and Rotary tillers, both of which are designed to save farmers time, reduce effort, and improve productivity. While harvesters combine reaping, threshing, and cleaning in a single operation, rotavators help in efficient soil preparation and yield improvement. Together, these machines reflect the company’s commitment to modernising farming with practical and reliable solutions.
2. Construction Equipment
Construction equipment has become the company’s growth engine. Indo Farm manufactures a wide range of cranes, including Pick-N-Carry (9–30 tonnes) and fixed tower cranes, catering to industrial, construction, and mining needs.
Cranes – This segment has witnessed robust growth, contributing 61.35% of revenue in FY25, up from 47.66% in FY24. Moreover, Indo Farm is now among the top three players in the Pick-N-Carry crane market in India, highlighting its competitive strength.
3. Financing Services
To make its products more accessible, Indo Farm also provides financing solutions through its group company, Barota Finance Ltd (NBFC). This initiative helps farmers and businesses secure easy credit for purchasing tractors, tillers, harvesters, and cranes. By offering in-house financing, Indo Farm strengthens its sales network, builds customer loyalty, and ensures wider adoption of its equipment across both agriculture and construction markets.
(G) Revenue Segments of Indo Farm Equipment Ltd. | Stock Analysis
(i) Segment wise Revenue
(ii) Geography Wise Revenue
(H) Cost Structure of Indo Farm Equipment Ltd.
(I) Financials of Indo Farm Equipment Ltd.
Indo Farm Equipment has delivered a 7.9% CAGR in revenue over FY20–25, with PAT CAGR of ~29.9%. Margins (PATM, ROE, ROCE) have steadily expanded, reflecting better operational efficiency. The company has also reduced its debt-equity ratio from 0.8x to 0.3x, strengthening its balance sheet. Overall, despite moderate sales growth, profitability and financial health have improved significantly.
(J) Management Discussion & Concall | Stock Analysis
- The company is starting to buy engines from third party that will result in 0.5% hike in prices .
- There will be price hike in cranes due to change in emission norm 2.5-3 lakhs in some cranes and 1-2 lakhs in others.
- Over the years, the company has shown consistent revenue growth, though segment-wise contributions have shifted with tractors influenced by farm incomes and monsoons, while cranes benefited from rising infrastructure activity.
- Furthermore, cranes have increasingly emerged as the key growth driver, positioning Indo Farm among the top players in the Pick-N-Carry crane market, whereas tractors continue to represent the company’s legacy strength.
- In addition, Indo Farm is scaling capacities—12,000 tractors and 3,600 cranes annually—alongside building a stronger dealer network and developing an export-dedicated facility to enhance global reach.
- As a result, the company enjoys a balanced mix between agriculture mechanization and infrastructure expansion, enabling it to capture opportunities from two major industry growth cycles.
- Going forward, Indo Farm’s integrated model of manufacturing, financing, and product diversification provides a strong foundation for sustained growth in both domestic and export markets.
Technical Collaborations
Indo Farm has strengthened its presence in the construction equipment segment through a strategic technology transfer agreement. The company has also acquired tower crane technology from Sichuan Hongsheng Heavy Machinery Co. Ltd., China, with the transaction facilitated by Beida Commercial & Trade Company.
The agreement includes complete technical documentation, design drawings, hydraulic and electrical schematics, assembly processes, and quality standards, enabling Indo Farm to manufacture advanced tower cranes in India.
This collaboration not only accelerates Indo Farm’s entry into the high-demand infrastructure equipment space, but also aligns with the Government’s ‘Make in India’ initiative by localizing production of globally benchmarked construction machinery.
Growth Outlook
- The company is also planning to decrease its working capital cycle to 150 days in FY26 and to 100 days in coming 2-3 years.
- While the tower cranes sales forecast for FY27 is 200 units.
- Indo Farm is well placed to benefit from rising farm mechanisation and infrastructure growth. Tractor capacity is being scaled to 12,000 units, with a wider dealer network and export-focused facility strengthening reach. In cranes, the company is already the 3rd largest player and is expanding capacity to 3,600 units, backed by a technology tie-up with Sichuan Hongsheng for tower cranes.
- While competition, raw material costs, and monsoon dependency remain key risks, Indo Farm’s integrated manufacturing, financing arm, and product diversification provide a strong base for sustained growth in both domestic and export markets.
Q1 FY26 Concall Highlights
- Company has 40% market share of cranes in north ( Punjab, Haryana, Chandigarh) and is expanding in other regions like (Patna, Odisha, Jharkhand, Kolkata).
- Projection for sales for pick and carry cranes for FY26 is 3000+ cranes.
- Company’s growth forecast for tractors is 30-40% in FY26 through retail finance agreement with other banks such as HDFC , Kotak.
- Installed capacity of 12,000 tractors annually; utilization currently low but expected to improve with crane backend usage.
- Crane capacity of 1,400 units to be expanded by 3,600 units with a new facility; first cranes from the new unit expected by Jan 2025.
- Planning ~30% growth in tractors and cranes combined in FY25, with 25% in FY26 and 20% in FY27.
- Post-IPO, company to set up a Dealer Development Department and add 500 dealers in 3 years (20 already added in Q1 FY26).
- Plans to establish an export-dedicated unit; current products already cater to 70% of global tractor requirements.
- Management optimistic about sustaining growth momentum with cranes as the key driver, alongside steady tractor volumes.
(K) Strengths & Weaknesses
Strengths
Proven Track Record & Leadership
Indo Farm Equipment Limited has over two decades of operations since 2000, led by Managing Director Mr. Ranbir Singh Khadwalia with 30+ years of industry experience, supported by an experienced management team.
Strong Market Presence
The company operates pan-India through 15 regional offices and 200+ dealers, while also exporting to more than 9 countries.
Improved Financials
In FY2025, total income reached ₹366.77 crore with stronger coverage ratios (ISCR 3.30x, DSCR 1.74x), higher net worth of ₹438.72 crore, and reduced gearing to 0.22x from 0.61x.
Weaknesses
Elongated Working Capital
In addition, operating cycle lengthened to 260 days in FY2025, driven by high inventory holding.
Intense Competition
Furthermore, Indo Farm Equipment Limited faces stiff competition from large established tractor manufacturers, limiting market share.
Cyclical Demand
Finally, earnings remain vulnerable to monsoon, crop prices, and farmer sentiment despite supportive government initiatives.
Drop us your query at – info@pawealth.in or Visit pawealth.in
References: Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets and Management Interviews, Industry Publications.
Disclaimer: The report only represents the personal opinions and views of the author. No part of the report should be considered a recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.
Most successful stock advisors in India | Ludhiana Stock Market Tips | Stock Market Experts in Ludhiana | Top stock advisors in India | Best Stock Advisors in Gurugram | Investment Consultants in Ludhiana | Top Stock Brokers in Gurugram | Best stock advisors in India | Ludhiana Stock Advisors SEBI | Stock Consultants in Ludhiana | AMFI registered distributor | Amfi registered mutual fund | Be a mutual fund distributor | Top stock advisors in India | Top stock advisory services in India | Best Stock Advisors in Bangalore
