Escorts Kubota Q4 Net Profit Jumps 30% as Tractor Sales Drive Strong FY26 Growth

Key Highlights

• Q4 net profit rose 30% to ₹324.8 crore.

• Q4 revenue increased 21% to ₹2,950.7 crore.

• Tractor volumes grew 21% to 32,257 units in Q4.

• FY26 tractor sales reached 1,33,670 units.

• Total FY26 dividend payout increased to ₹51 per share.

Escorts Kubota Limited reported a strong financial performance for the March quarter and full FY26, supported mainly by higher tractor sales, better operating efficiency, and improved business scale. The company posted healthy growth in revenue, profit, and EBITDA during the quarter, while its annual results were also boosted by the divestment of its railway business.

Also Read: Escorts Kubota Tractor Sales Rise 24.4 % in April 2026

Escorts Kubota Q4 FY26 Results

The Faridabad-based company reported a standalone net profit from continuing operations of ₹324.8 crore in Q4 FY26, registering a 30% year-on-year growth compared to ₹250.7 crore in the same quarter last year.

Revenue from continuing operations during the quarter increased 21% to ₹2,950.7 crore, compared to ₹2,430.3 crore in Q4 FY25.

The company also recorded strong operational growth during the quarter. EBITDA rose 32% to ₹386 crore, while EBITDA margin improved by 103 basis points to 13%.

Tractor Business Remains the Main Growth Driver

The agri machinery business continued to lead Escorts Kubota’s overall growth in the March quarter. Tractor volumes increased 21% year-on-year to 32,257 units.

Revenue from the agri machinery segment rose significantly to ₹2,395.7 crore from ₹1,974.8 crore in the corresponding quarter last year.

Although tractor sales volumes grew strongly, the tractor EBIT margin remained largely stable at 11.3%, compared with 11.4% in the year-ago quarter. It was also lower than the 13.5% margin recorded in the December quarter. This indicates that the company’s profit growth was mainly supported by higher sales volumes and operating leverage rather than sharp margin expansion.

Construction Equipment Business Also Improves

The construction equipment business also contributed positively to the company’s quarterly performance.

Construction equipment volumes grew 9.2% year-on-year to 1,877 units during Q4 FY26. Segment revenue increased to ₹556.5 crore from ₹453.9 crore in the same period last year.

The segment showed strong profitability improvement as EBIT margin increased sharply to 12.7%, compared with 9.1% in the year-ago quarter and 6.6% in the previous quarter.

Escorts Kubota FY26 Financial Performance

For the full financial year FY26, Escorts Kubota reported standalone revenue from continuing operations of ₹11,472.8 crore, up 12.6% from ₹10,187 crore in FY25.

EBITDA from continuing operations rose 28.5% to ₹1,513 crore, while net profit from continuing operations increased 24.4% to ₹1,380.9 crore.

The company’s earnings per share (EPS) from continuing operations also increased 24.3% to ₹125.52.

Strong Annual Tractor Sales Support FY26 Growth

The tractor business remained the company’s biggest strength throughout FY26.

Tractor volumes rose 15.7% to 1,33,670 units in FY26, compared to 1,15,554 units in FY25.

Revenue from the agri machinery segment increased 15.8% to ₹9,779.6 crore, while EBIT margin improved by 190 basis points to 12.6%.

The strong growth in tractor demand helped the company maintain healthy profitability during the year.

Construction Equipment Business Weakens in FY26

While quarterly performance improved, the construction equipment business remained weak on a full-year basis.

Construction equipment volumes declined to 5,794 units in FY26 from 6,484 units in FY25. Segment revenue also fell to ₹1,685.9 crore from ₹1,730.1 crore last year.

The segment’s EBIT margin dropped to 7.9%, compared with 9.9% in the previous financial year.

Railway Business Divestment Boosts Reported Profit

Escorts Kubota’s reported standalone net profit for FY26, including exceptional items and discontinued operations, surged 92.5% to ₹2,408.6 crore from ₹1,250.9 crore in FY25.

The sharp increase was mainly due to the divestment of the company’s railway business during the year.

According to the company, income of ₹1,601.7 crore, after transaction costs, from the railway business divestment was accounted for under discontinued operations.

Consolidated Performance

On a consolidated basis, Escorts Kubota reported Q4 FY26 revenue from continuing operations of ₹2,968.2 crore, up 21.4% year-on-year.

Consolidated net profit from continuing operations during the quarter increased 18% to ₹320.5 crore.

For FY26, consolidated revenue from continuing operations rose 12.7% to ₹11,540.3 crore, while consolidated net profit from continuing operations grew 21.6% to ₹1,366.4 crore.

Dividend Announcement

The company’s board has recommended a final dividend of ₹33 per share for FY26.

Along with the special dividend of ₹18 per share already paid during the year, the total dividend payout for FY26 will stand at ₹51 per share. This represents an 82.1% increase compared to the previous year’s dividend payout.

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CMV360 Says

Escorts Kubota delivered a strong FY26 performance driven mainly by higher tractor sales, improved operational efficiency, and better business scale. The company recorded healthy growth in revenue, EBITDA, and profit during both Q4 and the full financial year. While the construction equipment segment remained mixed, the tractor business continued to support overall growth momentum. The railway business divestment also boosted reported profit, helping the company increase shareholder returns through a higher dividend payout.