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Informist, Wednesday, May 6, 2026

By Prateem Rohanekar

MUMBAI – Escorts Kubota Ltd. is expected to report a sharp year-on-year rise in net profit and net sales. Brokerages peg the growth on an increase in sales volume in the agro-machinery and construction equipment segments and a rise in the average selling price for the latter segment. One brokerage, however, highlighted that the company had underperformed its peers in sales volumes.

The company's standalone net profit for the March quarter is expected to be INR 3.48 billion, up 25% on year, according to an average of estimates from seven brokerages. The net sales for the quarter are expected to be INR 29.79 billion, up nearly 23% on year.

The highest estimate for the company's net profit is INR 3.58 billion from Motilal Oswal Financial Services Pvt. Ltd. and the lowest is INR 3.13 billion by YES Securities (India) Ltd. The highest estimate for net sales is INR 30.65 billion, again from Motilal Oswal. The lowest estimate is INR 29.36 billion from Emkay Global Financial Services Ltd.

Kotak Securities Ltd. expects the company's revenue for the quarter to increase by 22% on year, led by a 22% year-on-year rise in revenues from the tractor segment and 19% rise in revenues from the construction equipment segment. Revenues from the construction segment are expected to rise on the back of a 9% year-on-year increase in volumes and a similar increase in average selling price following changes in emission norms.

Kotak Securities estimates the company's earnings before interest, tax, depreciation, and amortisation margin to grow by 130 basis points on year because of an operating leverage benefit in the tractors and construction equipment businesses. The margin might have grown more but for headwinds from the rising cost of input commodities.

Motilal Oswal estimates the company's EBITDA margin to improve by 80 basis points on year to 12.9%. The broking firm expects the company's net profit to grow 32% on year.

YES Securities estimates the company's average selling price to grow by 1.9% on year. The brokerage expects the company's revenues from the agro-machinery segment to grow a little over 23% on year and from construction equipment to grow almost 20%. It sees the company's EBITDA margin at 11.2%.

Escorts Kubota, in an exchange filing in April, had said it sold 30,444 tractor units in India during the March quarter, up almost 23% on year, and 1,813 units abroad, down 1%. The company's total tractor sales for Jan-Mar grew 21% on year.

The company is scheduled to announce its earnings for the March quarter Thursday. Wednesday, its shares closed 3.4% up from Tuesday at INR 3,317.10 on the National Stock Exchange. The stock has declined over 13% since the company announced its December quarter earnings on Feb. 10.

Out of the four brokerage reports on the company available with Informist, one has a "buy" or equivalent recommendation on the stock with a target price of INR 4,300, nearly 30% higher than the current price. Three brokerages have a "hold" or equivalent recommendation with an average target price of INR 3,888.

Following are the March quarter earnings estimates, in INR billion, for Escorts Kubota Ltd. from seven brokerages in descending order of the net profit estimate:

End

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

Edited by Rajeev Pai

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