Escorts Kubota Q4 profit rises 30% on strong tractor demand

Revenue growth and operating leverage helped EBITDA rise 31.8% year-on-year to Rs 386 crore, while EBITDA margin expanded 103 basis points to 13.1%. Profit before tax before exceptional items rose 21.1% to Rs 433.8 crore. The board recommended a final dividend of Rs 33 per share, taking the total FY26 payout to Rs 51 per share, including a special dividend already paid.

Tractor business drives growth

Tractor volumes grew 21.1% year-on-year to 32,257 units during the quarter, while segment revenue rose to Rs 2,395.7 crore. However, EBIT margin remained largely flat at 11.3%.

For FY26, tractor volumes increased 15.7% to 1,33,670 units, while revenue rose 15.8% to Rs 9,779.6 crore. Annual EBIT margin improved 190 basis points to 12.6%.

Bharat Madan, CFO and whole-time director, Escorts Kubota, said FY26 was a record year for the domestic tractor industry, which crossed around 11.5 lakh units. He added that the company’s growth lagged the broader industry due to weaker market share in southern markets, where demand remained strong.

“We have launched Paddy Special tractors in the southern market and several new launches are planned over the next three-four months across brands. Our focus this year will be on domestic market share improvement,” Madan said.

Construction equipment improves

Construction equipment volumes rose 9.2% to 1,877 units in the March quarter, while segment revenue increased to Rs 556.5 crore. EBIT margin improved sharply to 12.7% from 9.1% a year ago.

Despite geopolitical tensions and supply-chain disruptions, Madan said demand momentum remained stable, although rising supplier costs and logistics expenses could force price hikes if pressures persist.

The company expects double-digit tractor industry growth in the first quarter of FY27, though management indicated the broader annual outlook could remain largely flat due to cost inflation, geopolitical uncertainty and slowing export demand from Europe.