Millat Tractors profit falls 20% in 1HFY26 despite margin improvement
“Millat Tractors reported a 20% drop in 1HFY26 profit, even as quarterly sales and margins improved on higher volumes.”
Key points
- Millat Tractors reported a 20% drop in 1HFY26 profit, even as quarterly sales and margins improved on higher volumes.
- The company cited support from Punjab’s Green Tractor Scheme and announced a cash dividend alongside the results.
Millat Tractors Limited (MTL) has announced its half-year results, reporting a year-on-year decline in profit after tax for the first half of FY26.
For 2QFY26, the company posted profit after tax of Rs. 2.4 billion and said earnings were lower than the same quarter last year, though sharply higher than the previous quarter. Market commentary cited in the report attributed the outcome to stronger-than-expected gross margins.
MTL reported higher net sales, driven by an increase in tractor volumes, while noting that sales were supported by the Punjab government’s Green Tractor Scheme. It also reported higher distribution expenses in line with greater sales activity and lower finance costs due to reduced short-term borrowings.
The company announced a cash dividend for the quarter and disclosed that its effective tax rate for the period came in higher than expected, weighing on net profitability.
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