Millat Tractors Restricted (MTL) introduced its half-yearly outcomes immediately, whereby its revenue after-tax (PAT) declined by 20 % year-on-year (YoY) to Rs. 2.92 billion.
For 2QFY26, MTL posted an unconsolidated PAT of Rs. 2.4 billion (EPS: Rs. 12.06), down 21 % YoY however up 4.7 instances quarter-on-quarter (QoQ).
Topline Securities mentioned the outcome exceeded expectations as a result of higher-than-expected gross margins.
Alongside the outcomes, the corporate introduced a money dividend of Rs. 20 per share for 2QFY26 (1HFY26 payout: 137 %), which was increased than market expectations.
Gross margins surged to 35 % in 2QFY26, in comparison with 25 % in 2QFY25 and 27 % in 1QFY26. This introduced 1HFY26 gross margins to 33 %, up from 27 % in 1HFY25.
Web gross sales elevated by 7 % YoY and a couple of.8 instances QoQ to Rs. 20.9 billion. The sturdy QoQ development was pushed by increased tractor gross sales of 6,335 items, up 2.9 instances QoQ.
This takes 1HFY26 tractor gross sales to eight,512 items, down 16 % YoY. Notably, gross sales had been largely supported by the Punjab Authorities’s Inexperienced Tractor Scheme; in its absence, volumes would have been decrease.
Distribution bills rose 29 % YoY and a couple of.1 instances QoQ, primarily as a result of improve in tractor gross sales.
Finance prices declined 27 % YoY and 15 % QoQ in 2QFY26, primarily as a result of a discount in short-term borrowings to Rs. 9.1 billion in December 2025, in contrast with Rs. 17.3 billion in September 2025 and Rs. 14.0 billion in June 2025.
The corporate recorded a tax expense of Rs. 2.95 billion in 2QFY26, leading to an efficient tax charge (ETR) of 55 %, considerably increased than the anticipated 39 %. This compares with a tax reversal of Rs 67 million in 2QFY25. Consequently, the 1HFY26 ETR stood at 53 %, versus 7 % in 1HFY25.
MTL is at the moment buying and selling at an FY26E/FY27F price-to-earnings ratio of 18.7 instances and 12.9 instances, respectively.