The Board of Escorts Kubota Limited, in its meeting on February 10, 2026, approved the Unaudited Financial Results for the quarter and nine months ending December 31, 2025. Key decisions included declaring a Special Dividend of ₹18/- (180%) per share with a record date of February 16, 2026. Furthermore, the Board consented to invest up to ₹593 Crores for acquiring approximately 154 acres of land in YEIDA to establish a new Greenfield Project aimed at capacity enhancement.
Financial Results and Dividend Declaration
The Board of Directors of Escorts Kubota Limited approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2025. These results are attached as Annexure-I. Alongside the results, the Board declared a Special Dividend of ₹ 18/- (180%) per fully paid-up equity share (face value of ₹10/-) for the Financial Year 2025-26. The specified Record Date for this dividend payment is Monday, February 16, 2026, and the payment will be completed within 30 days.
Key Standalone Profit Highlights (Nine Months Ended Dec 31, 2025)
For the nine months ended December 31, 2025, the Net Profit for the period from continuing operations was ₹1,056.14 Crores, compared to ₹859.32 Crores in the previous year’s corresponding period. Total comprehensive income reached ₹2,085.35 Crores.
Board Changes and Governance
The Board appointed Mr. Hitoshi Sasaki (DIN: 11464326) and Mr. Satoshi Suzuki (DIN: 06527098), nominees of Kubota Corporation, as Additional Directors (Non-Executive Nominee Directors), effective February 10, 2026. These appointments are subject to shareholder approval and the directors will hold office until the ensuing Annual General Meeting or three months, whichever is earlier.
Greenfield Project and Capacity Expansion
The Board has consented to invest funds, in phases, for purchasing/acquiring approximately 154 acres of land in the YEIDA Industrial area, Uttar Pradesh. This land is designated for setting up a new Greenfield Project to enhance production capacity for tractors, construction equipment, and other products.
- Initial Investment Outlay: An estimated ₹ 593 Crores is required in the first phase, covering land cost, lease, and development for the Greenfield Project.
- Total Indicative Outlay: A Detailed Project Report (DPR) submitted to YEIDA indicates a total indicative outlay of ₹ 2,268 Crores.
- Capacity Enhancement Goals (First Phase): Increase tractor capacity by 60,000 units per annum and Construction Equipment capacity by 15,000 units per annum.
- Timeline: The proposed capacity addition is expected to be added within 7 years from the land allotment date.
- Financing Mode: The investment will be financed using proceeds from the earlier preferential issue of shares to Kubota Corporation, Japan, and internal accruals.
Segment Performance Highlights (Consolidated)
The segment reporting indicates strong growth. For the nine months ended December 31, 2025, Net Segment Revenue from continuing operations stood at ₹8,572.10 Crores. Profit Before Tax from continuing operations for the same period was ₹1,383.14 Crores.
Discontinued Operations (RED Business Sale)
The results also reflect transactions related to the sale of the RED Business. For the nine months ended December 31, 2025, the Net Profit from discontinued operations was ₹94.09 Crores. This includes a significant gain of ₹75.99 Crore recognized during the quarter ended June 30, 2025, from the sale of land and buildings to Sona BLW Precision Forgings Limited (Sona Comstar).
Auditor’s Review Conclusion
The accompanying financial statements were subjected to a limited review by the statutory auditors. The review report confirms that, based on their procedures and reliance on reports from other auditors for certain subsidiaries, nothing has come to their attention that causes them to believe the Statement contains any material misstatement.
Source: BSE
