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Informist, Saturday, Aug. 1, 2026

By Pratyush Kumar

MUMBAI – Tractor maker Escorts Kubota Ltd. is expected to report a single-digit increase in its net profit for the June quarter, backed by the growth in sales of tractors despite a delayed monsoon, according to brokerages tracking the company.

Escorts is likely to post a standalone net profit of INR 3.25 billion for the June quarter, according to the average of estimates from nine brokerages. This would imply a rise of over 9% on year but no growth on quarter. The highest estimate for the net profit is INR 3.46 billion from Axis Securities Ltd. and the lowest is INR 3.12 billion from Bank of America Global Research. 

The tractor manufacturer is expected to report standalone net sales of INR 31.65 billion for the June quarter, up over 27% on year and up 7% sequentially. The highest estimate for net sales is INR 31.97 billion from 360 ONE Capital Market Pvt. Ltd. and the lowest is INR 30.78 billion from Kotak Securities Ltd.

The company's revenue for the June quarter is expected to grow on the back of a 21% growth in the sales of its tractors. The company is likely to benefit from a higher average selling price of tractors. The construction equipment segment of the company is expected to see a 27% on-year volume growth, brokerages said. Overall, the industry faced high raw material costs during the June quarter because of the spike in prices of commodities and fuel due to the war in West Asia, brokerages said.

The tractor maker's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected at INR 3.62 billion, according to the average of seven estimates. The EBITDA is seen rising more than 11% on year but down 6% sequentially. The highest estimate for the EBITDA is INR 4 billion from Axis Securities Ltd. and the lowest is INR 3.49 billion from PhillipCapital (India) Pvt. Ltd.

The EBITDA margin is seen declining to 11.0-12.6% for the June quarter, according to three brokerages. The highest estimate for the margin is from Axis Securities and the lowest is from PhillipCapital. The EBITDA margin is expected to decline due to higher raw material prices and a rise in its fixed expenses for the construction equipment business, but the impact is likely to be partly offset by a 2% rise in tractor prices, Kotak said.

Escorts Kubota, mainly known for its tractor brand Farmtrac and Powertrac, also makes harvesters and construction equipment such as hydra cranes and excavators. Escorts Kubota will detail its June quarter earnings Monday. Friday, shares of the company closed over 2% at INR 3,086 apiece on the National Stock Exchange.

Of the four brokerage reports on the company available with Informist, only one has a "buy" recommendation on the stock at a target price of INR 4,000 apiece, 30% higher than the current market price. Two brokerages have a "hold" on the stock at an average price of INR 3,775 and one has a "sell" recommendation at INR 3,000.

Following are the Apr-Jun earnings estimates for Escorts Kubota from nine brokerages in descending order of the estimate of standalone net profit, in INR billion:

End

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

Edited by Pankaj Aher

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