Escorts Kubota Limited , a leading player in the Indian tractor and construction equipment market, has reported a strong financial performance for the second quarter of fiscal year 2026, showcasing significant growth in revenue and profitability.

Financial Highlights

The company's standalone financial results for Q2 FY '26 demonstrate impressive year-on-year growth:

The net profit growth appears modest due to a one-time tax impact of INR 91 crores in the corresponding quarter of the previous fiscal year. Adjusting for this, the normalized profit grew by 51.70% year-on-year.

Tractor Business Performance

The tractor segment, which forms the core of Escorts Kubota's business, delivered a robust performance:

• Total tractor sales volume increased by 30.30% to 33,877 units
• Market share improved by 20 basis points to 11.28%
• Domestic tractor sales grew by 30.50% to 32,329 units
• Export volumes rose by 26.20% to 1,548 units

The strong growth in the tractor segment was attributed to several factors, including the early onset of the festive season, continued government support, reduction in GST rates, and favorable agricultural conditions.

Construction Equipment Segment

While the construction equipment segment faced challenges, there were some positive developments:

• Total volume declined to 1,146 machines from 1,394 in the corresponding quarter
• Mini excavator market share improved by 151 basis points to 18.50%

The company expects the construction equipment business to recover in the latter half of the fiscal year as infrastructure project mobilization improves.

Future Outlook

Management remains optimistic about the tractor industry's growth prospects, expecting low double-digit growth for the full fiscal year. This positive outlook is supported by healthy water reservoir levels, anticipated robust crop yields, higher minimum support prices, and improved terms of trade for farmers.

Conclusion

Escorts Kubota's strong Q2 FY '26 performance, particularly in its tractor business, reflects the company's resilience and ability to capitalize on favorable market conditions. The significant improvement in EBITDA margin and normalized profit growth underscores the company's operational efficiency and cost management efforts.

As Escorts Kubota continues to navigate challenges in the construction equipment segment and focuses on expanding its market presence, investors and industry observers will be keenly watching the company's performance in the coming quarters.

Escorts Kubota Limited , a leading agricultural machinery manufacturer, has announced its financial results for the quarter ended September 30, 2025, showcasing significant growth in revenue and profit, largely driven by discontinued operations.

Revenue Growth

The company reported a robust increase in revenue for Q2, with revenue from operations rising to ₹2,777.42 crores, up from ₹2,489.96 crores in the previous quarter. This represents an 11.54% quarter-over-quarter growth, indicating strong demand for the company's products.

Profit Performance

Escorts Kubota experienced a substantial increase in net profit, which stood at ₹1,400.24 crores compared to ₹326.70 crores in the previous quarter. This significant jump in profit was primarily driven by ₹1,027.63 crores profit from discontinued operations, including ₹1,004.37 crores from the sale of RED Business.

Corporate Governance Updates

The company announced several changes to its Board of Directors:

1. The Board size was optimized from 18 to 16 Directors.
2. Mr. Manish Sharma (Independent Director) resigned effective August 21, 2025.
3. Mr. Dai Watanabe (Non-Executive Nominee Director) resigned effective October 31, 2025.

Additionally, the Board revised the Policy for Determination of Materiality of Events, authorizing Mr. Akira Kato as Deputy Managing Director to determine materiality of events alongside other designated officials.

Looking Ahead

As Escorts Kubota navigates through the fiscal year, the company's ability to maintain its revenue growth momentum will be closely watched. The substantial profit from discontinued operations, particularly the sale of the RED Business, marks a significant event for the company.

Escorts Kubota continues to demonstrate its strength in the agricultural machinery sector, with its Q2 results reflecting the company's ability to grow revenue and capitalize on strategic business decisions. The optimization of the Board structure and updates to corporate policies indicate the company's focus on enhancing governance and operational efficiency.