VST Tillers March Sales up 78% as Farm Equipment Demand Shoots up

V.S.T Tillers Tractors Ltd has reported a significant jump in its power tiller sales for March 2025, with volumes reaching 7,221 units, a remarkable 77.8% increase compared to 4,061 units in the same period last year. The company's total power tiller and tractor sales surged to 7,892 units in March 2025, up 63.6% from 4,823 units in March 2024, according to a regulatory filing made today.

The strong performance from VST comes as other major farm equipment manufacturers also posted robust sales figures for March, signaling a broad recovery in the agricultural machinery sector after a relatively lackluster second half of 2024 when sales were practically flat.

Industry leader Mahindra & Mahindra's Farm Equipment Sector delivered its highest-ever annual domestic tractor sales of 407,094 units for fiscal year 2025, representing a 12% growth over the previous year. The company's March performance was particularly impressive, with domestic sales jumping 34% to 32,582 units compared to 24,276 units in March 2024.

"We have achieved our highest ever tractor sales in F25 with a growth of 12%. This is driven by very strong retail sales across the country and lowest ever dealer channel inventory," said Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd.

Similarly, Escorts Kubota Limited reported a robust 15% growth in tractor sales for March 2025, with total sales reaching 11,374 units compared to 9,888 units in the same month last year. The company's domestic tractor sales increased by 15.2% to 10,775 units.

Bharat Madan, Whole Time Director and Chief Financial Officer of Escorts Kubota, attributed the growth to seasonal factors and positive market conditions, noting that "the start of Chaitra Navratri festival in March has led to good demand from our strong market."

While VST's tractor segment showed a slight decline with sales of 671 units in March 2025 compared to 762 units in March 2024, its dominant power tiller business more than compensated, driving overall growth. For the full fiscal year 2024-25, VST's total power tiller and tractor sales increased marginally by 1.7% to 42,584 units from 41,868 units in the previous fiscal year.

Industry analysts are optimistic that the strong performance in January-March 2025, with major players reporting 15-20% growth, will help the sector achieve its target of 6% growth for the year ending March. This comes after the industry faced challenges in the second half of 2024 due to erratic weather patterns and economic uncertainties.

The current growth is attributed to favorable monsoon conditions, with the 2024 southwest monsoon delivering 108% of the long-period average rainfall, increased agricultural output, particularly in rice production, and government support through various subsidy schemes and Minimum Support Price hikes.

Looking ahead, industry leaders remain positive about the outlook. As Sikka from Mahindra noted, "The tractor industry has been witnessing good momentum on account of favorable weather conditions, good reservoir levels, strong rabi outlook and positive terms of trade for farmers."

With the harvest season commencing in northern regions and expected to progress smoothly across the country, coupled with the forecast of a normal South-West monsoon this year, increased Rabi sowing, and good water reservoir levels, the farm equipment sector appears well-positioned for continued growth in the early months of fiscal year 2025-26.

Industry forecasts suggest tractor sales could approach or exceed 1 million units by FY 2025-26, driven by sustained government spending, rural infrastructure development, and technological advancements as India's agricultural sector continues to embrace mechanization.