Escorts Kubota Limited , a leading Indian engineering conglomerate, has reported mixed results for its July sales across its two main business divisions: Agri Machinery and Construction Equipment.

Tractor Sales Show Positive Growth

Escorts Kubota's Agri Machinery Business Division recorded total tractor sales of 7,154 units in July, marking a 2.7% increase compared to 6,963 units sold in July of the previous year. This growth was driven by both domestic and export markets:

• Domestic tractor sales reached 6,624 units, up 1.3% from 6,540 units in the previous year.
• Export sales saw a significant jump of 25.3%, with 530 tractors sold compared to 423 in the same month last year.

The company attributes the positive performance in the agricultural sector to favorable conditions:

• Timely and widespread above-normal monsoon rains
• Higher water reservoir levels
• Healthy rural sentiments
• Improved farmer cash flows

Kharif Sowing Progress Boosts Optimism

With Kharif sowing progressing well and already exceeding last year's sown area, Escorts Kubota remains optimistic about continued growth in the tractor industry. The company noted that while commercial demand remains soft, agricultural demand is holding steady.

Construction Equipment Sales Face Headwinds

In contrast to the tractor segment, Escorts Kubota's Construction Equipment Business Division experienced a significant decline in sales:

• Current month sales: 358 machines
• Previous year's sales: 491 machines
• Year-over-year decline: 27.1%

The company cited several factors contributing to the challenging market conditions in the construction equipment sector:

• Reduced construction activities due to monsoon
• Project delays
• Sluggish demand caused by higher product prices following emission norm changes

Despite the current downturn, Escorts Kubota remains hopeful for a potential upturn in the construction equipment market. The company points to the government's higher budgetary outlay towards capital expenditure for the current year, which may lead to increased investment in infrastructure projects and potentially trigger improved demand for construction equipment post-monsoon season.

Year-to-Date Performance

Looking at the broader picture for the first four months of the fiscal year (April - July):

The tractor segment has shown resilience with a slight growth, while the construction equipment division continues to face significant challenges.

Company Overview

Escorts Kubota Limited, formerly known as Escorts Limited, has a rich history spanning eight decades in manufacturing excellence. The company is committed to accelerating India's socio-economic development through its presence in the agricultural mechanization and construction sectors. With a focus on engineering excellence, product innovation, and market-relevant technologies, Escorts Kubota aims to create value for its customers and shareholders while contributing to the nation's progress.

Escorts Kubota Limited , a prominent player in the agricultural machinery sector, has recently received an Environmental, Social, and Governance (ESG) rating from CRISIL ESG Ratings & Analytics Ltd. The company announced this development in a regulatory filing on July 29, 2025.

ESG Rating Details

CRISIL ESG Ratings has assigned Escorts Kubota an overall ESG rating of 'Crisil ESG 53', categorizing it as 'Adequate'. This rating is based on the company's disclosures for the fiscal year 2024-25. It's worth noting that this assessment was conducted independently by CRISIL ESG Ratings using publicly available data, without any engagement from Escorts Kubota for this particular evaluation.

Independent Assessment

The company emphasized in its filing that it did not engage CRISIL ESG Ratings for this ESG rating. The rating agency prepared the report autonomously, relying solely on data pertaining to Escorts Kubota that was available in the public domain.

Timing and Transparency

The ESG rating event occurred on July 28, 2025, at 4:37 P.M., as disclosed by the company. In line with its commitment to transparency, Escorts Kubota has made this information available on its official website at www.escortskubota.com .

Regulatory Compliance

This disclosure aligns with the regulatory requirements set forth by the Securities and Exchange Board of India (SEBI). Specifically, it adheres to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read in conjunction with SEBI's recent circulars on ESG disclosures.

About ESG Ratings

ESG ratings are increasingly becoming a crucial metric for investors and stakeholders to assess a company's performance in environmental stewardship, social responsibility, and corporate governance. An 'Adequate' rating suggests that Escorts Kubota has demonstrated a satisfactory level of commitment to ESG principles, though there may be room for improvement in certain areas.

As companies worldwide face growing pressure to address sustainability concerns and ethical practices, such ratings provide valuable insights into their non-financial performance and long-term sustainability strategies.