Escorts Kubota announced robust financial performance for the quarter ended December 2025. Standalone Operating Revenue grew 11.1% YoY to Rs.3,261.4 crores, with EBITDA hitting a record Rs.438.7 crores (up 30.9% YoY). Net Profit from continuing operations increased by 24.7% YoY to Rs.362.4 crores. The company noted that its tractor segment volume grew 13.5%, supported by strong industry momentum.
Q3 FY26 Standalone Performance Highlights
Escorts Kubota Limited reported strong financial results for the quarter ended December 2025. Operating revenue from continuing operations reached Rs.3,261.4 crores, marking an 11.1% Year-over-Year (YoY) increase. The company achieved its highest-ever quarterly EBITDA of Rs.438.7 crores, reflecting a 30.9% YoY jump, with margins improving by 203 basis points to 13.5%.
Profit Before Tax (PBT) from continuing operations grew 37.5% YoY to Rs.522.7 crores. Net profit from continuing operations stood at Rs.362.4 crores, demonstrating a 24.7% YoY growth. Adjusted for a one-time impact of Rs.52.5 crores from the new labor code, the adjusted net profit was Rs.401.6 crores, up 38.3% YoY. The Board declared a one-time special dividend of Rs.18.0 per equity share.
Consolidated Performance Overview
On a consolidated basis, revenue from continuing operations was Rs.3,280.5 crores (up 11.3% YoY). EBITDA stood at Rs.434.7 crores (13.3% margin). Reported net profit grew 11.8% YoY, but normalized profit increased 38.1% YoY after accounting for the labor code impact.
Segmental Business Review: Tractors
The total tractor industry (domestic plus export) grew 23% YoY to 3.5 lakh tractors in Q3 FY26. Escorts Kubota’s total tractor volume was 36,955 units, increasing 13.5% YoY against 32,556 units previously. Domestic sales reached 35,373 tractors (up 12% YoY), moderated by regional disparities in North and Central markets.
Tractor exports saw significant growth, with export volume rising approximately 63% to 1,582 tractors. The company expects the domestic tractor industry to peak around 11.5 lakh units this fiscal year. Management highlighted that the Promaxx series is gaining strong traction.
Segmental Business Review: Construction Equipment
The Construction Equipment industry volume declined by approximately 16% YoY, attributed to a high base from pre-buying ahead of emission norms and monsoon impact. The company’s volume was 1,716 machines (up 49.7% sequentially). Segment revenue was Rs.489.9 crores compared to Rs.515.7 crores in the corresponding quarter last year. EBIT margin improved by 280 basis points sequentially to 6.6%.
Management noted that the decline in degrowth is gradually slowing, from 23.7% in Q1 to 13.7% in Q3, showing signs of stabilization. The Union Budget 2026-27 reinforced commitment via a public capital expenditure of Rs.12.2 lakh crores.
Agri Machinery (Non-Tractor)
Non-tractor revenue (agri-solution, engine, spare parts, and service) constitutes about 21% of the agri-machinery segment revenue. The segment revenue was Rs.2,769.6 crores (up 14.6% YoY). The EBIT margin for Agri Machinery improved by 310 basis points to 13.5%, driven by easing material costs.
Outlook and Future Strategy
Management indicated that the existing plant capacity is constrained, and the new Greenfield facility construction is planned to commence commercial production around 2029-30, though this is dependent on demand.
Regarding the low market share for the Kubota brand, management stated the primary issue is the limited product lineup, which currently only serves 40-50% of the addressable market. The strategy involves introducing the Indian platform under the Kubota brand name to lower cost structures and expand portfolio coverage towards 70-80%, with improvements expected from the second half of the next fiscal year.
On exports, while the EU FTA is not expected to impact tractor duties (already zero), the potential US deal could shift more production to India, leveraging a better blended tariff rate.
Source: BSE
