Company reports consolidated revenue of ₹3,280 crore for the December quarter; board approves two new Kubota nominees and a major capacity expansion in Uttar Pradesh.
10 Feb 2026 | 236 Views | By Arunima Pal
Escorts Kubota Limited reported a consolidated net profit of ₹358 crore for the third quarter ended December 31, 2025, a 24.5% increase over ₹288 crore in the year-ago period. Consolidated revenue from operations rose 11.3% year-on-year to ₹3,280 crore, up from ₹2,948 crore in Q3 FY25, driven by strong ...
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Escorts Kubota Limited reported a consolidated net profit of ₹358 crore for the third quarter ended December 31, 2025, a 24.5% increase over ₹288 crore in the year-ago period. Consolidated revenue from operations rose 11.3% year-on-year to ₹3,280 crore, up from ₹2,948 crore in Q3 FY25, driven by strong performance in the agri machinery segment. Total income, including other income of ₹154 crore, came in at ₹3,435 crore for the quarter.
The agri machinery segment remained the primary growth engine, with consolidated revenue climbing to ₹2,787 crore in Q3 FY26 from ₹2,429 crore a year ago — a 14.7% increase. Segment profit for the division reached ₹375 crore versus ₹252 crore in Q3 FY25, reflecting improving operating leverage and favourable product mix. For the nine months ended December 2025, agri machinery revenue stood at ₹7,431 crore, up from ₹6,515 crore in the same period last year.
Construction equipment revenue, however, contracted to ₹490 crore from ₹516 crore in the prior-year quarter, reflecting ongoing demand softness in that segment. For the nine-month period, construction equipment revenue was ₹1,129 crore compared to ₹1,276 crore in 9M FY25, underscoring continued pressure on the business.
An exceptional charge of ₹52.46 crore was recognised during the quarter relating to employee cost provisions triggered by India's new labour code, notified by the Government on November 21, 2025. The company assessed the impact arising from a revised wage definition and, given its materiality and non-recurring nature, presented it as an exceptional item. The company said it continues to monitor the finalisation of central and state rules and will take further accounting action as needed.
For the nine months ended December 31, 2025, consolidated revenue from operations was ₹8,572 crore, up from ₹7,799 crore in the comparable period. Profit before tax from continuing operations rose sharply to ₹1,383 crore from ₹1,000 crore, while net profit from continuing operations grew to ₹1,046 crore from ₹852 crore — a 23% year-on-year improvement.
Reported nine-month consolidated net profit stood at ₹2,074 crore, significantly inflated by a ₹1,004 crore post-tax gain from the sale of the Railway Equipment Division (RED Business) to Sona BLW Precision Forgings Limited (Sona Comstar). The RED Business was transferred during the quarter ended June 30, 2025, for a lump sum consideration of ₹1,600 crore. Adjusted consideration net of transaction costs was ₹1,601.69 crore against net assets transferred of ₹429.73 crore, yielding a pre-tax profit of ₹1,171.96 crore on the transaction.
The board declared a special dividend of ₹18 per share (180%) on equity shares of face value ₹10 each for FY2025-26. The record date has been fixed at February 16, 2026, and the dividend will be paid within 30 days. The paid-up equity share capital of the company stands at ₹111.88 crore, comprising approximately 11.19 crore shares.
In a major capacity expansion move, the board approved the acquisition of up to approximately 154 acres of land in the YEIDA (Yamuna Expressway Industrial Development Authority) Industrial Area, Sector-10, Gautam Buddha Nagar, Uttar Pradesh, for the construction of a new greenfield manufacturing plant. The move is aimed at increasing production capacity for tractors, construction equipment and other products to meet the company's domestic and global growth plans.
In the first phase, Escorts Kubota intends to add 60,000 tractor units per annum and 15,000 units of construction equipment per annum, against its existing installed capacity of 1.70 lakh tractors and 10,000 construction equipment units. FY25 capacity utilisation stood at 65% for tractors and 60% for construction equipment. The full capacity addition is targeted within seven years of land allotment.
The Detailed Project Report submitted to YEIDA carries an indicative total investment outlay of ₹2,268 crore, inclusive of land, lease and development costs. Land acquisition alone is estimated at up to ₹593 crore, to be invested in one or more tranches. Further investment will be finalised by the board as phases of capacity installation are framed. The project will be financed from the proceeds of the earlier preferential share issue to Kubota Corporation, Japan, and from internal accruals.
The board appointed Hitoshi Sasaki and Satoshi Suzuki as Additional Directors in the category of Non-Executive Nominee Directors, representing Kubota Corporation, Japan, effective February 10, 2026.