Escorts Kubota Limited , a leading player in the agricultural machinery and construction equipment sectors, has reported robust financial results for the first quarter and shared optimistic projections for the future.

Q1 Financial Highlights

The company's standalone net profit, including discontinued operations, surged to ₹1,400.20 crore, marking a significant 361.3% increase from ₹303.50 crore in the corresponding quarter of the previous year. This substantial growth was primarily driven by the sale of its Railway Equipment Division (RED) to Sona BLW Precision Forgings Limited.

Key financial metrics for Q1 include:

• Revenue from operations: ₹2,483.40 crore, down 2.9% year-on-year
• EBITDA: ₹325.00 crore, up 2.6% year-on-year
• EBITDA margin: 13.1%, an improvement of 69 basis points
• Profit before tax and exceptional items: ₹417.90 crore, up 19.3% year-on-year

Segment Performance

Agri Machinery Products

Construction Equipment

The company noted that the construction equipment segment's margin was adversely impacted by the clearance of inventory of old emission products and the transition to new emission norms compliant products.

Future Outlook and Strategic Plans

Escorts Kubota has set ambitious targets for the future:

• EBITDA margins projected to reach 12-12.5% for FY26
• Aiming for 25-30% growth in exports this fiscal year
• Plans to increase export revenue contribution to 15% from the current 5-6%
• Outlined a capital expenditure plan of ₹350-400 crores for FY26, excluding land costs for new projects

The company maintains a positive outlook for the tractor industry, predicting mid-to-high single-digit growth for the current year. This forecast suggests that Escorts Kubota anticipates continued robust demand in the agricultural sector.

Strategic Developments

The company completed the sale of its Railway Equipment Division (RED) to Sona BLW Precision Forgings Limited during the quarter, resulting in a significant boost to its profits. This strategic move allows Escorts Kubota to focus more intensively on its core agricultural and construction equipment businesses.

In a move to strengthen its leadership, the company appointed Mr. Akira Kato as an Additional Director in the capacity of Whole-Time Director & Key Managerial Personnel, designated as 'Deputy Managing Director'. Mr. Kato brings nearly three decades of experience with Kubota Corporation, which is expected to contribute to the company's growth strategies.

Escorts Kubota's strong Q1 performance, ambitious export growth targets, and significant capex plans reflect the company's resilience and strategic focus on expanding its core competencies in the agricultural and construction equipment sectors. As the company continues to navigate market challenges and capitalize on growth opportunities, investors and industry observers will be keenly watching its progress towards achieving its projected margins, export growth, and industry growth targets.

Escorts Kubota Limited , a leading agricultural machinery and construction equipment manufacturer, has announced significant changes in its leadership and reported robust financial results for the first quarter.

New Leadership Appointment

The company's Board of Directors has approved the appointment of Mr. Akira Kato as an Additional Director in the capacity of Whole-Time Director and Key Managerial Personnel, designated as Deputy Managing Director. Mr. Kato's appointment, effective August 04, 2025, is for a five-year term, subject to shareholder approval.

Mr. Kato, aged 51, brings nearly three decades of experience with Kubota Corporation to his new role. He holds a bachelor's degree in economics from the University of Osaka and has previously served as Chief-Officer of the Corporate Planning Division at Escorts Kubota. His expertise spans marketing, sales, finance, accounting, HR, and business planning, with a particular focus on tractor sales in Thailand and agricultural machinery in India.

This appointment follows the resignation of Mr. Seiji Fukuoka from the position of Whole-time Director (Deputy Managing Director), effective the same date.

Q1 Financial Highlights

Escorts Kubota reported impressive financial results for the quarter ended June 30:

• Standalone net profit surged by 361.30% to ₹1,400.20 crore, compared to ₹303.50 crore in the corresponding quarter of the previous year.
• Revenue from operations stood at ₹2,483.40 crore, a slight decrease of 2.90% from ₹2,556.30 crore in the same quarter last year.
• EBITDA increased by 2.60% to ₹325.00 crore, with the EBITDA margin improving to 13.10% from 12.40% in the same quarter last year.
• Earnings per share (EPS) rose significantly to ₹127.29, up from ₹27.63 in the corresponding quarter.

Segment Performance

Agri Machinery Products

Construction Equipment

The decline in the Construction Equipment segment was primarily due to inventory clearance of old emission norm products.

Strategic Developments

The company completed the transfer of its Railway Equipment Division (RED) to Sona BLW Precision Forgings Limited (Sona Comstar) during the quarter. This divestment resulted in a significant gain, contributing to the substantial increase in net profit.

Additionally, the Board has approved the extinguishment of the Escorts Benefit Trust, which is expected to be completed within two months.

Outlook

With the appointment of Mr. Akira Kato and the strong financial performance in Q1, Escorts Kubota Limited appears well-positioned for continued growth. The company's focus on its core agricultural and construction equipment businesses, coupled with strategic divestitures, suggests a clear path forward in its market segments.

Investors and industry observers will be watching closely to see how these leadership changes and financial results translate into long-term value for the company and its stakeholders.