VST Tillers is on a transformation mode

VST Tillers Tractors Ltd (VTTL), long identified with compact tractors and power tillers in India, is scripting a new chapter of growth. Over the last 4 years, revenues have doubled from Rs543 crore to over Rs1,000 crore. In the first quarter of FY26, the company posted its highest-ever turnover of Rs282.5 crore, a 48 per cent rise over the same period last year. Power tiller sales soared 92 per cent, power weeders expanded 63 per cent, and profitability almost doubled, with operational EBITDA margins climbing to 13.3 per cent.

“This surge is the outcome of a deliberate transformation agenda – scaling R&D investments, forging global partnerships, diversifying product lines, and strengthening market reach. We are strategically redefining the landscape of farm mechanisation by focusing on innovative, compact solutions. The company’s clear objective is to transform from a traditional farm equipment manufacturer into a dynamic, growth-oriented enterprise,” explains Antony Cherukara, CEO, VST Tillers Tractors Ltd.

An assessment of the company’s current sales performance in the first quarter of FY26 proved to be the strongest in VST Tillers’ history, delivering a record turnover alongside sharp volume growth across key product lines. Tractor exports fell 20 per cent year-on-year – from 392 units in Q1 FY25 to 312 units in Q1 FY26 – reflecting softer overseas demand. Yet strong domestic consumption more than offset the shortfall. Distribution revenues rose 22 per cent quarter-on-quarter, underscoring the momentum of an expanding retail footprint.

Importantly, this performance has been delivered despite headwinds such as raw material inflation and supply chain disruptions. Over the last 4 years, the company has consistently invested over Rs100 crore in research and development, ensuring resilience through innovation.

This evolution reflects the company’s ambitions to expand beyond conventional markets and establish a broader presence in the agricultural sector. By emphasising innovation and efficiency, VST Tillers aims to meet the evolving needs of farmers and stakeholders, positioning itself as a leader in modern agricultural technology and solutions.

The Genesis

For starters, VST Tillers Tractors Ltd is part of the VST Group, established in 1911 by VS Thiruvengadaswamy Mudaliar. Originally dealing in petroleum and automobiles, the group expanded its legacy by founding VST Tillers Tractors Ltd in 1967 through a joint venture with Mitsubishi Heavy Industries, Japan. For over 50 years, the company’s power tiller brand became the market leader in 1982 and now dominates over 70 per cent of the market.

However, VST began its global journey by exporting its first batch of tillers to Africa in 1978, and pioneered India’s first 4WD compact tractors in 1982. In 2016, VTTL embarked on an international expansion, introducing ‘VST FLIEDTRAC’ for the EU, offering products that meet the latest regulations. Currently, VST Tillers Tractors offers a product range from 9 HP to 50 HP, covering a wide range of applications from vineyard management to commercial hauling.

Today, VST has a presence in over 40 countries. In India, where 86 per cent of farmers are small and marginal farmers, the company recognises the critical need for affordable and accessible mechanisation solutions tailored to this segment. “We help farmers boost productivity, enhance crop yields, and promote sustainable food security. Our diverse product portfolio includes power tillers, power weeders, brush cutters, and multi-crop reapers ranging from 2 HP to 16 HP, designed to empower small and marginal farmers, enabling them to thrive in the evolving agricultural landscape,” adds Cherukara, underscoring VST’s pioneering role in the compact tractor segment through its innovative 4WD compact tractors first introduced in India in 1982.

Catering to the diverse needs of farmers, VST’s tractor portfolio, marketed under the VST brand, ranges from 17 HP to 50 HP, offering versatile solutions for applications from small-scale farming to commercial operations such as vineyard management and hauling.

Innovation is at the heart of VST Tillers’ transformation journey. The newly launched FENTM Series – compact tractors in the 18.5 to 29 HP range – has been engineered for Indian conditions, offering higher torque and improved fuel efficiency for small and mid-sized farmers. In parallel, the joint venture with HTC Investments (owners of the ZETOR brand) is rolling out higher-horsepower models designed for both domestic and export markets.

“The innovation push extends into sustainability. In collaboration with leading US farm equipment makers, VST has developed and showcased its first fully electric, driver-optional smart tractor in Germany in 2023. This project reflects the company’s belief that future-ready, sustainable technologies will be the cornerstone of its next growth phase,” points out Cherukara, who is also taking decisive steps to establish VST as a global brand.

“We are planning to launch three new higher-horsepower refreshed tractors, as well as electric tiller and weeder models, during the financial year. A global R&D centre, backed by an investment of Rs100 crore, is being set up to consolidate innovation for both domestic and international markets,” adds Cherukara, who is eyeing entry into the US market within the next 2 years.

“These moves position VST not just as a challenger, but as a sector-shaper at a time when the agri-machinery industry itself is in flux. Established majors dominate the large tractor segment, while global brands are deepening their presence in India. Yet the fastest growth is in compact and specialised equipment: a category VST helped pioneer in India as early as 1985,” he adds.

“Our position is unique: we are retaining dominance in compact equipment while steadily entering higher-horsepower categories. This dual strategy enables us to serve both smallholder farmers seeking affordability and progressive cultivators looking for advanced machines, ensuring resilience across demand cycles,” he says, reflecting on the challenges.

Challenges galore

At the same time, challenges remain. Volatility in global markets highlights the risks of relying on exports, while inflationary pressures on raw materials and rising logistics costs continue to weigh on margins. Domestic competition in compact tractors is also intensifying as more players recognise the segment’s potential.

VST Tillers’ response lies in scale and engagement. Plans are underway to double the dealership network from 1,000 to 2,000, widening access to products and services. New product lines, including power weeders, brush cutters, and reapers, are being developed to broaden appeal among small and marginal farmers.

The growth ambition is clearly defined: to double volumes and become a diversified global brand. The company’s operational EBITDA is projected to remain in the 11-13 per cent range, supported by expanding volumes, product launches, and geographical diversification. 

Today, VST Tillers’ story is as much about transformation as it is about performance. From pioneering compact tractors in India to preparing for electric model launches in Europe, the company is redefining its role in the industry.

“We are driving innovation through our EV initiative, aligning with global trends towards sustainability and efficiency in farming. By developing electric power tillers, power weeders, and tractor drivetrains, VST aims to reduce environmental impact, lower operational costs for farmers, and expand its global footprint,” sums up Cherukara, whose next chapter is centred on scale, global presence, and sustainable innovation. With record performance already achieved and a clear roadmap for the years ahead, VST Tillers demonstrates how an Indian brand with deep domestic roots can translate legacy into leadership on the world stage.