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Informist, Monday, Aug. 3, 2026

 

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--Escorts Kubota Apr-Jun net profit INR 3.87 bln
--Analysts saw Escorts Kubota Apr-Jun net profit at INR 3.25 bln
--Escorts Kubota Apr-Jun revenue INR 31.79 bln
--Analysts saw Escorts Kubota Apr-Jun revenue at INR 31.65 bln
--Escorts Kubota Apr-Jun net profit INR 3.87 bln vs INR 14.00 bln yr ago
--Escorts Kubota Apr-Jun revenue INR 31.78 bln vs INR 24.83 bln yr ago
--Escorts Kubota Q1 agri machinery revenue INR 27.66 bln vs INR 21.81 bln
--Escorts Kubota Q1 construction equipment sales INR 4.20 bln vs INR 3.01 bln

--Escorts Kubota Apr-Jun EBITDA INR 3.55 bln vs INR 3.25 bln yr ago 

--Escorts Kubota Apr-Jun EBITDA margin 11.2% vs 13.1% yr ago

--Escorts Kubota Apr-Jun agri machinery EBIT margin 10.8%, down 183 bps on yr  

--Escorts Kubota Apr-Jun tractors capacity utilisation 84% vs 70% yr ago 

--Escorts Kubota Q1 construction equipment EBIT margin 5.4%, dn 41 bps on yr 

--Escorts Kubota Apr-Jun construction equipment capacity utilisation 47% 

 

By Pratyush Kumar

 

MUMBAI – Tractor maker Escorts Kubota Ltd. reported a sharp rise in revenue from operations for the June quarter led by high demand despite the weak monsoon in the quarter. However, the profit declined significantly on year due to a high base. Both the sales and profit beat analysts' estimates.

 

The company reported a standalone net profit of INR 3.87 billion for the June quarter, down 72% on year. In the June quarter a year ago, the company had reported a net profit of INR 14.00 billion, including gains of INR 10.28 billion from discontinued operations and INR 760 million from the sale of a property to Sona BLW Precision Forgings Ltd. Adjusting for these one-time gains, the net profit for the June quarter rose 30% on year from INR 2.97 billion. Sequentially, the net profit rose nearly 17%. Analysts had estimated the company's net profit for the June quarter at INR 3.25 billion.

 

Escorts Kubota's standalone revenue from operations rose 28% on year to INR 31.79 billion from INR 24.83 billion in the year-ago quarter. Sequentially, the revenue was up nearly 8%. Analysts had expected the company to report net sales of INR 31.65 billion.

 

The tractor maker's total expenses for the June quarter were INR 28.93 billion, up 30% on year and nearly 10% sequentially. Escorts Kubota's cost of materials consumed increased 55% on year to INR 18.95 billion and was the single biggest expense for the company, accounting for 65% of total expenses. The growth in expenses outpaced the growth in the company's revenue. 

 

Escorts Kubota's revenues from the agri machinery products segment grew 27% on year to INR 27.66 billion and the revenue from construction equipment rose 39% to INR 4.20 billion.

 

The company's employee benefit expenses in the June quarter grew 10% on year to INR 2.03 billion. Its expenses on purchase of stock-in-trade declined more than 4%. Escorts Kubota reported a negative INR 1.86 billion change in inventories of finished goods, stock-in-trade, and work-in-progress.

 

The company outpaced the industry's domestic tractor volume growth by 4.3%, rising 22.9% on year while the industry grew 18.6%. However, its export volumes were down 18.9% on year while the industry's export volumes grew 17.7%.

 

Escorts Kubota's earnings before interest, tax, depreciation, and amortisation for the June quarter were up more than 9% on year at INR 3.55 billion. The EBITDA margin contracted 191 basis points on year to 11.2%.

 

The company's tractor capacity utilisation for the June quarter was 84%, up from 70% in the year-ago quarter. The construction equipment capacity utilisation was at 47%.

 

"...Despite commodity inflation pressures, our focused cost management and operational efficiencies helped sustain growth," the company's management said in a press release. "We remain confident about the future, supported by a robust pipeline of new product launches, continued innovation, and our commitment to creating value for customers and stakeholders."  

 

Monday, shares of Escorts Kubota ended at INR 3,135.50 apiece on the National Stock Exchange, up 1.6% from Friday. The company released its earnings during market hours.  End

 

Edited by Rajeev Pai

 

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