Gurunanak Agriculture India Ltd. (GURUNANAK)
SME CapIndustrials stocks · SME cap · NSE
Gurunanak Agriculture India Ltd. (GAIL) manufactures agricultural machinery including Track Combine Harvesters (TCH), threshers, reapers, rotavators, and cultivators. The company operates a fully integrated manufacturing setup in Chhattisgarh, with a domestic presence across 15 states and exports to Africa and Asia.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹26 Cr | NDF | +61.4% |
| EBITDA | ₹6.2 Cr | +34.9% | +85.9% |
| Operating margin | 23.8% | +5 bps | +315 bps |
| PAT | ₹4 Cr | NDF | +91.4% |
| PAT margin | 15.4% | +22 bps | +242 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
GAIL reported a 3.9% YoY decline in FY26 revenue to ₹4,208.23 lakhs, but H2 FY26 revenue grew 34.7% YoY to ₹2,598.45 lakhs. Net profit for FY26 decreased 4.2% YoY to ₹608.38 lakhs, while H2 FY26 net profit surged 36.5% YoY to ₹399.70 lakhs.
While H2 FY26 showed strong recovery, full-year FY26 revenue and net profit declined YoY, indicating challenges. The company's high revenue concentration in Chhattisgarh and exposure to monsoon variability remain key concerns. Management's focus on TCH scale-up and market expansion is critical for future growth and diversification.
Track Combine Harvester (TCH) Segment
positiveHigh-margin TCH products are now the flagship, with strong domestic demand and increasing adoption in paddy harvesting.
Farm Mechanisation
positiveIndia's agriculture mechanisation is 40-70% underpenetrated, creating substantial growth opportunity, supported by government policies.
Market Expansion
positiveStrengthening domestic network, expanding distributor base, exploring South India (AP, TN, Karnataka), and European market entry via dealership model (FY27).
Electric Agri-equipment
positiveGAIL has early products like electric crop reapers ready, aligning with the eco-friendly trend and serving institutional demand.
New Raipur Manufacturing Shed
positive80% completed, under construction in Raipur, dedicated harvester assembly line to improve scalability.
Solar Power Installation
positivePlanned solar power installation for energy cost reduction and ESG alignment, expected Q1 FY27 completion.
TCH Production Capacity
positiveNew line operational April 2026 with a capacity of 300 units/year.
Underpenetrated Market
positiveIndian agriculture mechanisation is significantly underpenetrated, creating substantial growth opportunity.
Policy Support & Subsidies
positiveGovernment initiatives like SMAM (40-80% subsidy), RKVY, CHC Scheme, and Kisan Credit Card support farm mechanisation adoption.
Import Substitution Drive
positiveGovernment actively supports domestic manufacturers; GAIL's indigenous TCH benefits from 'Make in India' push.
La-Nina Upside
positiveLa-Nina brings above-normal monsoon, which would surge GAIL's thresher and harvester sales, creating operating leverage upside.
El-Nino / Monsoon Deficiency
negativeEl-Nino typically causes below-normal monsoon in core markets (CG, MP, Odisha), reducing paddy crop area and thresher demand.
Chinese Competition
negative53% of non-tractor imports are from China, posing a competitive threat.
Input Cost Inflation
negativeSteel and other input cost inflation from global geopolitical tensions can impact margins.
GST 2.0 Transitional Disruptions
negativeExperienced disruptions in H1 FY26 due to GST 2.0 transition, impacting business.
Revenue Concentration
negativeChhattisgarh alone accounts for 72.6% of domestic sales, making the company vulnerable to regional factors.
Seasonal Business
negativeBusiness is seasonal, with peak sales from Oct-Feb and Mar-May, and weak periods in between, impacting inventory and working capital.
Small Scale & Bargaining Power
negativeSmall scale (₹44 Cr.) limits bargaining power with suppliers, potentially affecting input costs.
Logistics & Lending Network
negativeAbsence of long-term logistics contracts poses supply disruption risk; limited formal institutional presence in lending/NBFC network.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
H2 FY26 results show strong sequential momentum and YoY growth, indicating recovery from H1 FY26 impacts. Comparing H2 FY26 to H2 FY25 highlights this recovery, while FY26 vs FY25 provides the overall annual performance trend.
Revenue from Operations (FY26)
negative₹4,208.23 lakhs (FY26) vs ₹4,385.65 lakhs (FY25), a 3.9% YoY decline.
Revenue from Operations (H2 FY26)
positive₹2,598.45 lakhs (H2 FY26) vs ₹1,929.50 lakhs (H2 FY25), a 34.7% YoY increase.
Net Profit (FY26)
negative₹608.38 lakhs (FY26) vs ₹635.18 lakhs (FY25), a 4.2% YoY decline.
Net Profit (H2 FY26)
positive₹399.70 lakhs (H2 FY26) vs ₹292.78 lakhs (H2 FY25), a 36.5% YoY increase.
Strategic Transformation
positiveManagement aims for structural growth in agriculture mechanisation, niche positioning in TCH, margin expansion, capacity/distribution growth, and export optionality.
Focus on TCH Segment
positiveTransition to high-margin Track Combine Harvesters as flagship products is a key strategic move.
Market Diversification
positiveStrengthening domestic network and exploring Europe via dealership model are key for market expansion.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| TCH Production & Sales | New line operational April 2026 (300 units/yr capacity). | Ramp-up of TCH production and sales volumes, and contribution to overall revenue mix. |
| South India Expansion | South India (AP, TN, Karnataka) identified as underserved market. | Concrete steps and initial revenue contribution from expansion into South Indian states. |
| European Market Entry | Exploring Europe via dealership model (FY27). | Establishment of dealership network and initial export orders from European markets. |
| Solar Power Installation | Planned for Q1 FY27 completion. | Timely commissioning of the solar plant and its impact on energy costs and margins. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
46NeutralSMA20 -8.0% / mo · MACD −
Technical chart
GURUNANAKdaily · 1Y · AUTO+25.1%Daily history is available from 2025-10-01; the requested 1Y window is partially covered.
Daily technical trend read
Bearish setupTrend is weak — long-term uptrend intact. RSI 47.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~8.7% over last month) — short-term momentum negative.
- RSI(14) at 47 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 39% off 52W high · 64% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 75 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 75 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 81.6%.
- Valuation contributes 30/30 to the score.
- Growth contributes 24/25 to the score.
Main drags
- Penalty bucket subtracts 8 points.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Quality is weaker at 12/20; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 60th percentile within Industrials. Main check: cash conversion is weak at 40/100.
Healthy Trust Lite: Promoter holding is 68%. Key concern: Operating cash flow is negative at ₹-7 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 60th pctile, median 68 · SME: 81st pctile, median 64
3 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 68%.
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.04.
- ▸ROCE is 27.2%.
Trust risks
- ▸Operating cash flow is negative at ₹-7 Cr.
- ▸ROCE trend is -11.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 6.76
- P/B
- 0.87
- EV/EBITDA
- 4.18
- Market Cap
- 41.10Cr
Profitability
- ROE
- 20.50%
- ROCE
- 27.20%
- ROA
- 11.70%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 31.00%
- EPS 5Y
- 31.00%
- Revenue 3Y
- 3.00%
- EPS 3Y
- 77.50%
Balance Sheet
- Debt/Equity
- 0.04
- Interest Coverage
- 18.69×
- Altman Z
- 7.82
- Book Value
- 39.30
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -7.29 Cr
- EPS TTM
- 5.07
Shareholding
- Promoter Hold
- 68.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 31%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.