Escorts Kubota reported a strong Q2 FY’26, with revenue from continuing operations up by 22.6% year-over-year to INR2,791.6 crores. EBITDA increased to INR359.7 crores, with margins at 12.9%. The tractor segment saw domestic sales increase by 30.5%. The company anticipates continued growth in the tractor industry, driven by healthy water reservoirs and improved terms of trade. They foresee single-digit growth for the CE business for the fiscal year.
Financial Performance
Escorts Kubota announced its financial results for Q2 FY’26, demonstrating substantial growth. Key highlights include:
- Revenue from continuing operations: INR2,777.4 crores (Standalone), up 22.6% Y-o-Y
- EBITDA: INR363.2 crores (Standalone), up 56% Y-o-Y, with a margin of 13.1%
- PBT from continuing operations: INR431.1 crores (Standalone), up 55.2% Y-o-Y
- Net profit (PAT) from continuing operation: INR321.2 crores (Standalone)
On a consolidated basis:
- Revenue from continuing operations: INR2,791.6 crores, up 22.6% Y-o-Y
- EBITDA: INR359.7 crores, with a margin of 12.9%
- Net profit from continuing operations: INR318.1 crores
Segmental Performance
Tractor Business
The tractor industry experienced significant growth in Q2 FY’26, with total industry volume (domestic plus exports) reaching 3 lakh tractors, a 28% increase compared to the previous year. Escorts Kubota’s tractor volume was at 33,877 tractors, up by 30.3% resulting in a 20 basis points market share gain. The company’s domestic sales stood at 32,329 tractors, up by 30.5%. Looking ahead, the company expects the tractor industry to maintain growth, delivering low double-digit growth for the full fiscal year.
Construction Equipment Business
The construction equipment industry faced challenges in Q2 FY’26, with industry volume declining by approximately 4%. Escorts Kubota’s CE business volume was at 1,146 machines. Revenue came at INR338.1 crores. The company expects the industry to recover in the remaining part of the fiscal year.
Strategic Outlook
Escorts Kubota is focused on expanding its presence in both domestic and export markets. The company plans to leverage the Kubota network for exports and is working on new product development. While the construction equipment industry is facing short-term headwinds, Escorts Kubota remains optimistic about long-term growth opportunities. The company emphasized a shift towards higher horsepower tractors following GST revisions, and are implementing various product interventions to capture market share, particularly in the South and West regions. They also mention the potential benefit of deflation and a continued intent from the government to promote domestic production.
Source: BSE
