Escorts Kubota Q2 Profit Rises 6% on Strong Tractor Sales; Revenue Up 23%: Agri Machinery Segment Leads Growth with 30% Surge in Tractor Volumes

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Key Highlights

• Net profit up 6% YoY to ₹321.2 crore.

• Revenue rose 22.6% to ₹2,777.4 crore.

• Tractor sales surged 30.3% YoY to 33,877 units.

• EBITDA jumped 56%; margins at 13.1%.

• Construction equipment sales declined to 1,146 units.

Escorts Kubota Limited (EKL) has announced its financial results for the quarter ended September 2025, showing strong growth driven by its agri machinery business. The company’s consolidated net profit rose 6% year-on-year to ₹321.2 crore, supported by robust tractor sales and improved margins.

Revenue Grows 23% Year-on-Year

During the July–September quarter (Q2 FY26), revenue increased 22.6% to ₹2,777.4 crore, compared with ₹2,264.9 crore in the same period last year. On a quarter-on-quarter basis, revenue was up 11.8% from ₹2,483.4 crore in the previous quarter.

The company also reported a sharp rise in profitability, with EBITDA climbing 56% to ₹363.2 crore, while margins expanded by 280 basis points to 13.1%. Profit before tax (PBT) surged 55.2% to ₹431.1 crore, reflecting improved cost management and strong product mix.

Strong Performance in First Half of FY26

For the first half of FY26, Escorts Kubota’s revenue from continuing operations increased 9.1% to ₹5,260.8 crore, compared with the previous year. EBITDA for the period rose 25.2% to ₹688.2 crore, and PBT grew 35.2% to ₹849 crore.

After including discontinued operations—mainly from the divestment of its railway business—the company’s net profit stood at ₹1,721.4 crore, up sharply from ₹630.2 crore in the same period last year.

Tractor Sales Power Overall Growth

The agri machinery segment remained the company’s key growth driver this quarter. Tractor volumes jumped 30.3% year-on-year to 33,877 units, while segment revenue increased 29.1% to ₹2,432.9 crore.

Segment EBIT margins improved strongly to 12.8%, compared with 9.1% a year earlier. The growth was supported by a steady recovery in rural demand and the company’s focus on introducing value-driven products tailored for farmers’ needs.

Construction Equipment Segment Faces Slowdown

While the agri machinery business flourished, the construction equipment segment faced a weak quarter. Sales declined to 1,146 units, compared with 1,394 units in the same period last year.

Segment revenue dropped from ₹379.9 crore to ₹338.1 crore, and EBIT margins fell to 3.8%, down from 9.3% a year earlier. The company attributed the slowdown to lower market demand and project delays in the construction sector.

Company Outlook

Escorts Kubota said it remains committed to strengthening its core operations, focusing on product innovation, and enhancing efficiency across business segments. “The strong growth in our agri machinery segment reflects continued rural demand recovery and our ability to deliver value-driven products. We continue to pursue profitable growth across all business verticals,” said Bharat Madan, Whole-Time Director and Group CFO, Escorts Kubota Limited.

With rural markets showing positive momentum and continued government support for agriculture, the company expects steady growth in the coming quarters.

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CMV360 Says

Escorts Kubota Limited delivered a strong performance in Q2 FY26, led by impressive growth in tractor sales and improved profitability in its agri machinery segment. Despite a slowdown in the construction equipment business, the company’s focus on efficiency, innovation, and rural demand helped drive overall growth. With positive market trends and ongoing agricultural support, Escorts Kubota remains optimistic about sustaining its growth momentum in the coming quarters.