Escorts Kubota Limited has announced its sales performance for January 2026, reporting mixed results across its business divisions. The company's Agri Machinery Business Division demonstrated strong growth with tractor sales reaching 9,799 units, while the Construction Equipment Business Division faced market challenges with 524 machines sold.

Tractor Sales Performance

The Agri Machinery Business Division achieved remarkable growth in January 2026, selling 9,799 tractors compared to 6,669 tractors in January 2025, registering a growth of 46.9%. This performance was driven by robust domestic demand and steady export growth.

Domestic Market Momentum

Domestic tractor sales showed exceptional performance with 9,137 tractors sold in January 2026, marking a substantial 50.8% growth compared to 6,058 tractors in January 2025. The domestic tractor industry demonstrated continued momentum driven by positive rural sentiment and increased farm activity due to progress in rabi sowing, improved water availability, reduction in GST rate, favorable government policies, and ongoing state subsidies.

Construction Equipment Challenges

The Construction Equipment Business Division faced headwinds, selling 524 machines in January 2026 compared to 544 machines in January 2025, representing a decline of 3.7%. The division continues to experience demand softness and slower infrastructure execution, though early signs of stabilization emerged in January 2026.

Ten-Month Performance Overview

For the April-January period, tractor sales reached 1,11,212 units compared to 95,590 units in the previous year, showing growth of 16.3%. Construction equipment sales for the same period totaled 4,441 machines against 5,309 machines, declining by 16.3%.

Escorts Kubota Limited has received a major relief from tax authorities as the State Tax Officer, Mandaveli Assessment Circle, Chennai, Tamil Nadu has dropped substantial GST demands against the company. The development marks the resolution of a prolonged tax dispute that had been ongoing since 2025.

Tax Demand Details

The State Tax Officer issued multiple orders dated January 29 & 30, 2026, dropping tax demands worth ₹299.24 crores along with associated interest and penalty. The demands covered a four-year period spanning Financial Years 2020-21 to 2023-24.

Company's Contest Grounds

Escorts Kubota had contested the original tax demands raised through Show Cause Notices on two primary grounds. The company argued against the wrong classification of agricultural tractors as road tractors, which would have different tax implications under GST regulations. Additionally, the company challenged the computation methodology, specifically the wrong calculation of alleged taxes on total GST turnover instead of limiting it to tractor turnover only.

Regulatory Compliance

The company has maintained transparency throughout the process by providing regular updates to stock exchanges. Previous intimations were filed on May 08, 2025 and December 30, 2025 under Regulation 30 of SEBI Listing Regulations. The latest disclosure follows the same regulatory framework, ensuring investors remain informed about material developments.

Timeline and Documentation

The company received the first order from the State Tax Officer on January 29, 2026 at 06:34 P.M. IST. The formal disclosure to stock exchanges was made on January 30, 2026, demonstrating prompt compliance with listing obligations. The resolution comes after the company filed written objections before the State Tax Officer rather than pursuing litigation in courts or tribunals.

This favorable outcome provides significant financial relief to Escorts Kubota Limited and removes a substantial contingent liability from the company's books. The resolution demonstrates the effectiveness of the company's tax strategy and its ability to successfully contest disputed demands through proper legal channels.