In order to improve transplanter performance and mat characteristics in mat-type paddy tray nurseries in paddy cultivation and to increase the paddy seedling quality and yield, a soil mix fertilizer with vermicompost and farmyard manure was optimized in different proportions. The investigation provides valuable insights for optimizing paddy cultivation practices, with emphasis on the potential of a specific treatment TC7, composed of 50% vermicompost, 30% farmyard manure, and 20% soil, to contribute to more robust and productive paddy cultivation systems. The TC7 treatment showed notable results, including highest average paddy seed germination (93.00 ± 2.24%), significant paddy seedling height (16.85 ± 1.72 cm), balanced root-to-shoot ratio (0.72 ± 0.013), robust seedling vigour index (1567.05 ± 121.45), substantial biomass production (0.481 ± 0.0010 g), and significant dry matter production (0.0422 ± 0.0029 g). The highest mat thickness of 28.10 ± 0.05 mm and the lowest mat weight per m2 area of 22.30 ± 1.56 kg/m2 was recorded in TC4 treatment containing 44% vermicompost, 44% farmyard manure, and 12% soil. The highest rolling quality of the mat with a rolling score of 10.00 ± 0.027 in TC8 treatment containing 30% vermicompost, 50% farmyard manure, and 20% soil, and the maximum mat strength of 54.90 ± 3.82 kg/m2 in TC10 treatment (soil alone). Mechanical transplanter performance exhibited superiority maximum planted hills per meter run (7 ± 1), optimum seedlings per hill (3), minimum occurrences of missing hills (1), and a maximum plant population per m2 (116 ± 5) utilizing seedling mats prepared with TC7 treatment. The highest grain yield of 4180 ± 449 kg/ha and grain straw ratio of 0.88 ± 0.0317 was recorded in the TC7 treatment. Thus, this study recommends fine-tuning and adopting the TC7 treatment combination to facilitate sustainable smart farming practices in India. Farmers are encouraged to consider implementing TC7 treatment combinations to elevate the quality and productivity of paddy cultivation.