Millat Tractors Limited (PSX: MTL) has reported a steep decline in its earnings for the current financial year. The company’s revenue declined by more than 43%, falling to Rs 52.1 billion from Rs 91.5 billion in the previous year, Profit reported.
Net profit fell by 38% to Rs6.37 billion, while earnings per share came in at Rs31.9. The company controlled its costs and pricing, which helped raise its gross margin to 26.6% from 23.4%. However, the gain was not enough to offset the steep decline in sales volumes and overall revenue.
These figures were disclosed in Millat Tractors’ statutory filing to the Pakistan Stock Exchange, where the profit and loss statement highlights the drop in both revenue and profitability.
Farmers’ Struggles Behind the Decline
The downturn in Millat Tractors’ performance cannot be seen in isolation. Farmers across Pakistan are enduring one of the toughest periods in recent memory.
Agricultural output has fallen sharply, with losses in major crops such as rice and maize exceeding Rs 1.26 trillion in just the first six months of 2025. Climate shocks, water shortages, and outdated irrigation systems have added to the uncertainty, while reduced policy support and higher borrowing costs have made financing new farming equipment even harder.
With farmers struggling to sustain even basic profitability, big-ticket purchases like tractors have become unaffordable. This squeeze on demand lies at the heart of Millat Tractors’ revenue collapse, underscoring how deeply the company’s fortunes are tied to the health of Pakistan’s agriculture sector.
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