Escorts Kubota Limited reported a 361% increase in net profit to ₹1,400.2 crore for the first quarter of fiscal year 2026, driven by the completion of its Railway Equipment Division divestment to Sona BLW Precision Forgings Limited for ₹1,601.7 crore on June 1, 2025.
The company's earnings per share surged to ₹127.29 from ₹27.63 in the same period last year. Revenue from continuing operations declined 2.9% to ₹2,483.4 crore compared to ₹2,556.3 crore in Q1FY25.
Net profit from continuing operations increased 40% to ₹372.6 crore, while EBIDTA from continuing operations rose 2.6% to ₹325.0 crore with margins improving to 13.1%.
The Railway Equipment Division transfer generated ₹1,004.4 crore in post-tax profit from discontinued operations. Profit before tax, excluding exceptional items, increased 19.3% to ₹417.9 crore, supported by a ₹76.0 crore exceptional gain from land and building sales.
In the Agri Machinery segment, tractor sales volume reached 30,581 units, up 0.7% year-on-year. Segment revenue increased 0.4% to ₹2,181.5 crore with EBIT margin improving to 12.6%.
Construction Equipment sales declined 23.7% to 1,055 units with revenue falling to ₹301.5 crore from ₹380.6 crore. The segment's EBIT margin was 5.8%, impacted by inventory clearance and emission standard transitions.
On a consolidated basis, net profit including discontinued operations reached ₹1,397.1 crore compared to ₹301.7 crore in Q1FY25. Consolidated EPS was ₹127.01 versus ₹27.46 in the previous year.
The results incorporate operations of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited following NCLT approval of their amalgamation in August 2024. The Board of Directors approved the Railway Equipment Division divestment in October 2024.