Millat Tractors Limited: performance and outlook

Business Recorder reported that Millat Tractors Limited (PSX: MTL) lifted its net sales by 22.35 percent in 2026, reaching Rs63,755.24 million. Tractor volumes weakened during the year, but higher per unit prices, driven by costlier steel, engines and imported components, pushed revenue up. Lower farm purchasing power, delayed subsidy schemes and tighter access to affordable financing held back demand for new machinery.

Gross profit rose 46.85 percent, lifting the gross margin to 31.94 percent, while operating profit climbed 55.26 percent. Net profit increased 23 percent to Rs7840.789 million, translating into earnings per share of Rs19.65 and a net margin of 12.30 percent. Finance cost fell 32.85 percent, yet the report notes that unpaid sales tax refunds kept growing and pushed the company toward more external borrowing.

The report points to the green tractor scheme for medium horse power tractors, wheat harvest demand and flood rehabilitation drives as positive factors for the industry. MTL also plans a bigger push into exports to offset thin domestic demand. A recent distribution agreement with Lovol Intelligent Agricultural Technology Co. will bring high technology machinery to Pakistan and widen the company's product range.