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Informist, Monday, Feb. 9, 2026

 

By Nandini Sinha

 

MUMBAI - Escorts Kubota Ltd. is expected to post a healthy on-year rise in its net profit and revenue for the December quarter, led by an increase in revenue from the tractor segment, according to brokerages. However, the construction segment is expected to post an on-year decline in revenue due to changes in emission norms, brokerages said.

 

The company is expected to post a net profit of INR 3.96 billion for the December quarter, up over 36% on year and over 23% on quarter, according to the average of estimates from six brokerages. Escorts Kubota had posted a net profit of INR 2.90 billion in the year-ago quarter. The company will announce its earnings Tuesday.

The highest estimate for the net profit is INR 4.18 billion from Emkay Global Financial Services Ltd., while the lowest estimate is INR 3.71 billion from Nuvama Wealth Management Ltd.

 

Escorts Kubota is expected to post net sales of INR 31.96 billion for the reporting quarter, up nearly 9% on year and over 15% sequentially, according to the average of estimates. The company had posted net sales of INR 29.35 billion in the year-ago quarter.

 

The highest estimate for the company's net sales is INR 32.77 billion from HSBC Global Research, while the lowest estimate is INR 31.21 billion from Nuvama.

 

Escorts Kubota's tractor volumes are expected to grow on year due to the cut in Goods and Services Tax, state subsidies, resilient cash flow on healthy output of kharif crops, and rise in sowing of rabi crops, according to Nuvama. In the September quarter, the company had posted tractor sales of 33,877 units, up over 30% on year. In December 2025, Escorts Kubota sold 7,577 tractors, up 38.5%.

 

The sales volume of construction equipment was 1,146 units in the September quarter, down nearly 18% on year. "The construction equipment industry has been navigating a challenging environment currently, primarily due to extended monsoon season and lower-than-expected mobilisation of infrastructure projects on the ground," the company's management had told investors in a post-earnings conference call. Escorts Kubota's construction equipment division sold 812 machines in December 2025 as against 873 machines in December 2024.

 

Escorts Kubota's earnings before interest, tax, depreciation, and amortisation are expected to be INR 4.41 billion, up nearly 32% on year, according to the average of estimates. The highest estimate for the company's EBITDA is INR 4.60 billion by Emkay Global, while the lowest estimate is INR 4.34 billion by Nuvama.

 

The company's EBITDA margin for the December quarter is seen at 13.4-13.6%, up 200-220 basis points on year and 30-54 bps on quarter, according to three brokerages. Kotak Securities Ltd. expects the EBITDA margin to increase mainly due to operating leverage benefit in the tractor business.

 

HSBC Global Research sees high minimum sales price for crops, low competition and price hikes leading to industry-wide margin expansion and faster-than-estimated localisation as upside risks for the company for the December quarter. The downside risks for the company include high competition in the farm sector, "delay in achieving synergies from Kubota" and a delay in commencement of production at the new plant in Uttar Pradesh.

 

Escorts Kubota's shares have fallen over 1% since its September quarter earnings were announced. At 1447 IST on Monday, shares of the company were at INR 3,780 on the National Stock Exchange, up 0.4% from the previous close.

 

Of the four brokerage reports on the company available with Informist, three brokerages have a 'hold' recommendation on the stock with an average target price of INR 3,800 per share. One brokerage has a 'buy' recommendation with a target price of INR 4,000 per share. This is nearly 6% higher than the current market price.

 

Following are the December quarter earnings estimates of Escorts Kubota from six brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGE NAME	NET SALES	NET PROFIT	EBITDA
Emkay Global Financial Services Ltd.	31.92	4.18	4.60
Kotak Securities Ltd.	32.05	4.17	4.37
HSBC Global Research	32.77	3.96	4.39
YES Securities (India) Ltd.	31.82	3.87	4.42
Motilal Oswal Financial Services Ltd.	31.98	3.87	4.35
Nuvama Wealth Management Ltd.	31.21	3.71	4.34
Average	31.96	3.96	4.41

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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