Lahore: Millat Tractors Limited has released its financial report for the first quarter ending on September 30, 2026, showcasing a significant upturn in both sales and earnings compared to the same period last year.
The company sold 3,013 tractors in the three-month period, marking a 38.4% increase from the 2,177 units sold in the corresponding period of the previous year. This surge in sales volume translated to a substantial rise in net sales value, which escalated from Rs. 7.55 billion to Rs. 10.92 billion, representing a 44.7% increase. Earnings per share (EPS) also saw a notable improvement, climbing to Rs. 2.46 per share from Rs. 1.29 per share in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the tractor industry as a whole experienced a 38% increase in sales, with 4,109 units sold during the quarter. The demand particularly surged in September when industry sales hit 1,815 units, more than doubling the sales from September 2025. This increase was partly driven by the Government of Punjab's launch of Phase IV of the Green Tractor Scheme, offering subsidies to farmers for the purchase of new tractors.
On the broader economic front, Pakistan reached a staff-level agreement with the International Monetary Fund (IMF) in October 2026, which is set to release approximately USD 1.2 billion. The nation's foreign exchange reserves rose to about USD 21.5 billion by the end of September, and headline inflation eased to 10.3%. The State Bank of Pakistan's policy rate remains at 11.5%. However, ongoing conflict in the Middle East has kept international energy prices high, posing a risk to input costs and inflation.
Despite the positive sales performance, the company faces liquidity pressures due to outstanding sales tax refunds, which amounted to Rs. 7.971 billion as of September 30, 2026. This situation has resulted in increased finance costs due to the need for bank borrowing to maintain operations.
Looking forward, Millat Tractors anticipates continued demand bolstered by the remaining phases of the Green Tractor Scheme and the upcoming Rabi season. In a strategic move, the company signed a distribution agreement with Weichai Loval Intelligent Agricultural Technology Co. Ltd, China's largest agricultural machinery manufacturer, in September 2026. This partnership aims to expand Millat Tractors' product portfolio and reinforce its market position, aligning with the government's efforts towards modern farm mechanization and food security.
The Board of Directors expressed gratitude towards shareholders, customers, dealers, vendors, and employees for their continuous support and dedication as the company navigates new growth opportunities.