Faridabad-headquartered Escorts Kubota Ltd posted its consolidated financial performance for the quarter ended June 2025 with decent revenue at Rs 2,500 crores , EBITDA at Rs 321.4 crores, Net Profit at Rs 369.5 crores , and EBITDA margin of 12.9%.
Escorts Kubota reports robust Q1 FY2026 performance with tractor sales growth, export surge, and improved Agri machinery margins despite slow construction segment (Photo: Pinterest)
Starting with the sequential business performance of Q1 FY2026, the agri machinery tractor division posted sales growth of 30,581 tractors as against 30,370 tractors during the corresponding quarter of the last financial year.
In the domestic market, though regions from Central India and northern India posted a slower growth of only 0.5% , the rest of the country experienced a substantial high growth of 19.3% for the first quarter of 2026. The company has continued with its strategy to offer innovative products by launching the Farmtrac brand in most of the states in India, thereby covering 70% of the industry.
The export business segment during Q1 FY2026 was very good for Escorts Kubota with it posting sales of 1,733 tractors, up 80% against 961 tractors for the corresponding quarter of the last fiscal. Within the Agri machinery business, the revenue stood at Rs 2,181 crores for the current quarter and EBIT margin up by 92 basis points at 12.6% on the back of softening in material costs.
On the other hand, the construction equipment business consisting of mini excavators, cranes, back hoe loaders, compactors, etc. posted slower volume growth over the same quarter of the last financial year. The EBIT margin for the construction equipment business was severely impacted, coming at 5.8% as against 10.3% of the corresponding quarter of the last financial year due to the transition of new compliance norm issues.
The company is quite bullish in the business performance of its recent launch of Kubota MU series—41 to 50 HP category tractor powered by an advanced and efficient engine delivering superior comfort and smooth performance for the Indian market. The company expects the sales volume to grow substantially in the second quarter of the current financial year. Moreover, Escorts Kubota will be launching its Wetland series of tractors under the Powertrac brand in Q3 FY2026 and expects these to drive market share growth over the next one-year timeframe.
Looking ahead, Escorts Kubota is also extremely optimistic about sustained growth in the tractor industry over the next few quarters on the back of timely and widespread above normal monsoon with improved reservoir levels, positive rural sentiments, and improvement in rural income of farmers.
The company has also recently launched its pick and carry crane with advanced Hydraulic features designed to offer superior efficiency and reliability and it is quite optimistic that it will become a preferred choice for customers. Escorts Kubota Ltd is expecting substantial demand improvement for construction equipment on the back of the government allocating a larger capital expenditure budget in FY2026.
Moreover, the company management has also announced in its last analyst call that it will be launching a pipeline of innovative products to capture market share in weak market areas. But the company management is also safeguarding itself by looking closely at commodity and other metal prices which may impact the business and profit margins over the next few quarters. The stock price of Escorts Kubota is currently quoting at Rs 3665 on the Indian bourses and though analysts are not expecting much fireworks in the Q2 FY2026 financial results set to be announced on November 04, 2026 , fund managers and industry analysts are quite bullish on the company with a one-year investment time frame for superior gains. Investors can accumulate the scrip in smaller lots like SIP on market dips for a long-term horizon.
