Escorts Kubota Limited has announced that its board of directors has approved a significant additional investment in its wholly owned subsidiary, marking a substantial commitment to strengthen its financial services arm.

Board Approval Details

The company's board, in its adjourned meeting held on February 12, 2026, approved the proposal to make a further investment of up to Rs 500 crores in Escorts Kubota Finance Limited. This investment structure provides flexibility as it can be deployed in one or more tranches based on business requirements and strategic priorities.

Enhanced Financial Commitment

This latest approval significantly enhances the company's total investment commitment to its finance subsidiary. The additional Rs 500 crores comes on top of an existing approval of Rs 200 crores, demonstrating the company's continued confidence in its financial services business vertical.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company filed the intimation with both BSE Limited and National Stock Exchange of India Limited on February 12, 2026. This decision follows the company's earlier communication dated February 10, 2026, indicating that the investment proposal was under active board consideration.

The formal intimation was signed by Arvind Kumar, Company Secretary, ensuring proper corporate governance and regulatory compliance in the disclosure process.

Escorts Kubota Limited has announced its revised earnings presentation for Q3FY26, showcasing strong operational performance across key business segments. The company submitted its unaudited financial results for the quarter and nine months ended December 31, 2025, to stock exchanges on February 10, 2026.

Strong Q3FY26 Financial Performance

Escorts Kubota delivered robust financial results for Q3FY26, demonstrating resilient business fundamentals and operational efficiency. The company's revenue from operations grew significantly while maintaining healthy profitability margins.

The company's material cost as a percentage of revenue improved to 71.0% from 73.1% in Q3FY25, reflecting better cost management. Manpower costs decreased to 6.4% from 6.8% year-on-year, contributing to margin expansion.

Segment-wise Performance Analysis

Agri Machinery Products

The agri machinery segment remained the primary growth driver, contributing significantly to overall revenue performance. The segment demonstrated strong market positioning across tractor and non-tractor categories.

The tractor business maintained its strong momentum with domestic volumes reaching 96,550 units in 9MFY26, representing 12.6% YoY growth. Export volumes showed exceptional performance with 4,863 units in 9MFY26, marking 53.9% YoY growth.

Construction Equipment Segment

The construction equipment division faced headwinds but showed sequential improvement. Despite volume challenges, the segment maintained its market leadership position in key product categories.

The company maintained strong market share positions with PNC cranes at 40.8% and mini excavators at 23.2%. Capacity utilization stood at approximately 60% for Q3FY26.

Nine-Month Performance Highlights

For the nine-month period ending December 31, 2025, Escorts Kubota achieved exceptional results driven by both continuing and discontinued operations.

The significant increase in total PAT was primarily attributed to discontinued operations, which contributed ₹1,027.6 crore compared to ₹94.1 crore in 9MFY25.

Market Position and Operational Metrics

Escorts Kubota maintained strong operational efficiency with return on capital employed at 17.5% (annualized) and return on equity at 12.0% (annualized) for Q3FY26. The company's capacity utilization remained healthy at approximately 75% for tractors and 60% for construction equipment.

The domestic tractor industry grew 23.2% YoY in Q3FY26, while export markets expanded 20.1% YoY, providing favorable market conditions for the company's growth trajectory.