Escorts Kubota Profit Jumps 361% in Q1FY26 After Selling Railway Business; Tractor Sales Steady, Construction Slows

Key Highlights

• Net profit jumped 361% to ₹1,400.2 crore in Q1FY26.

• Railway Division sold to Sona Comstar for ₹1,601.7 crore.

• Tractor sales rose 0.7% to 30,581 units.

• Revenue from continuing operations fell 2.9% to ₹2,483.4 crore.

• Construction equipment sales dropped 23.7% to 1,055 units.

Escorts Kubota Limited has reported a massive 361% increase in net profit for the first quarter of fiscal year 2026 (Q1FY26), reaching ₹1,400.2 crore. This exceptional rise was primarily driven by the successful divestment of its Railway Equipment Division to Sona BLW Precision Forgings Limited (Sona Comstar) for ₹1,601.7 crore, completed on June 1, 2025.

Sharp Increase in Earnings

Due to this divestment, the company earned ₹1,004.4 crore in post-tax profit from discontinued operations alone. Escorts Kubota’s earnings per share (EPS) surged to ₹127.29 in Q1FY26, up from ₹27.63 in the same quarter last year.

On a consolidated basis, including discontinued operations, net profit reached ₹1,397.1 crore, compared to ₹301.7 crore in Q1FY25. The consolidated EPS also increased significantly to ₹127.01 from ₹27.46 last year.

Continuing Operations Performance

Despite the profit growth, the company reported a 2.9% decline in revenue from continuing operations at ₹2,483.4 crore, down from ₹2,556.3 crore in Q1FY25. However, net profit from these continuing operations rose 40% year-on-year to ₹372.6 crore.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) from continuing operations rose by 2.6% to ₹325.0 crore, with EBITDA margins improving to 13.1%. Profit before tax, excluding exceptional items, grew 19.3% to ₹417.9 crore. This figure includes a ₹76.0 crore gain from the sale of land and buildings.

Agri Machinery Sales Grow Marginally

In the Agri Machinery segment, Escorts Kubota sold 30,581 tractors in Q1FY26, a 0.7% increase compared to the previous year. Segment revenue rose slightly by 0.4% to ₹2,181.5 crore, and EBIT margin improved to 12.6%.

Construction Equipment Faces Decline

The Construction Equipment segment faced a challenging quarter. Sales dropped 23.7% to 1,055 units, with revenue falling from ₹380.6 crore to ₹301.5 crore. The EBIT margin for this segment was 5.8%, affected by inventory clearance efforts and the shift to new emission standards.

Amalgamation Impact and Divestment Approval

These Q1FY26 results also include the operations of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited, following their amalgamation with Escorts Kubota Limited. This merger was approved by the National Company Law Tribunal (NCLT) in August 2024.

The company’s Board of Directors had previously approved the divestment of the Railway Equipment Division in October 2024, paving the way for this major financial outcome.

Also Read: TMA Urges Government to Exclude 25–50 HP Tractors from TREM V Norms

CMV360 Says

Escorts Kubota’s strong Q1FY26 results reflect a successful divestment strategy, improved profitability in agriculture machinery, and focused operational efficiency. While the construction equipment segment saw lower sales, the overall financial performance sets a strong tone for the rest of the fiscal year.