Escorts Kubota Q4 Net Profit Rises 30% on Strong Tractor Sales

Escorts Kubota Ltd reported a 30% year-on-year rise in standalone net profit and a 21% increase in topline for the March quarter, helped by strong growth in tractor volumes and improved operating margins.

The Faridabad-based company clocked a net profit of ₹324.8 crore in the quarter ended March, as against to ₹250.7 crore in the corresponding quarter. Its revenue from continuing operations rose came in at ₹2,950.7 crore, compared with ₹2,430.3 crore in the year-ago period. 

In Q4, the tractor manufacturer’s earnings before interest, depreciation, tax and amortisation (EBITDA) increased 32% to ₹386 crore, while EBITDA margin expanded 103 basis points to 13%, according to an exchange filing.

The company’s performance was led by its agri machinery business, where tractor volumes rose 21% year-on-year to 32,257 units in the March quarter. Construction equipment volumes also grew 9.2% to 1,877 units during the quarter.

The tractor business remained the key growth driver for Escorts Kubota in the quarter. Segment revenue from agri machinery stood at ₹2,395.7 crore, compared with ₹1,974.8 crore in the year-ago period.

However, tractor EBIT margin was broadly stable at 11.3%, compared with 11.4% in the corresponding quarter and lower than 13.5% in the December quarter. This suggests that the profit growth was driven more by volume expansion and operating scale than sharp margin expansion in the tractor segment.

The construction equipment business also supported Q4 numbers. Segment revenue rose to ₹556.5 crore from ₹453.9 crore a year earlier, while EBIT margin improved sharply to 12.7% from 9.1% in the corresponding quarter and 6.6% in the sequential quarter.

FY26 Performance

For FY26, Escorts Kubota reported standalone revenue from continuing operations of ₹11,472.8 crore, up 12.6% from ₹10,187 crore in FY25. EBITDA from continuing operations rose 28.5% to ₹1,513 crore, while net profit from continuing operations increased 24.4% to ₹1,380.9 crore. EPS from continuing operations rose 24.3% to ₹125.52.

The full-year performance was again led by the tractor business. Tractor volumes rose 15.7% to 1,33,670 units in FY26 from 1,15,554 units in the previous year. Segment revenue grew 15.8% to ₹9,779.6 crore, while EBIT margin improved 190 basis points to 12.6%.

The construction equipment business was weaker on a full-year basis. Volumes declined to 5,794 units from 6,484 units in FY25, while segment revenue fell to ₹1,685.9 crore from ₹1,730.1 crore. EBIT margin for the year stood at 7.9%, compared with 9.9% in the previous year.

Rail Business Divestment Boosts Reported PAT

Including exceptional items and discontinued operations, standalone net profit for FY26 rose 92.5% to ₹2,408.6 crore from ₹1,250.9 crore in the previous year.

This was aided by the divestment of the railway business, which was completed during the year. Escorts Kubota said income of ₹1,601.7 crore, net of transaction cost, from the divestment was accounted for under discontinued operations.

On a consolidated basis, Q4 revenue from continuing operations rose 21.4% to ₹2,968.2 crore, while consolidated net profit from continuing operations increased 18% to ₹320.5 crore. For FY26, consolidated revenue from continuing operations rose 12.7% to ₹11,540.3 crore, and net profit from continuing operations grew 21.6% to ₹1,366.4 crore.

The company’s board recommended a final dividend of ₹33 per share for FY26. Including the special dividend of ₹18 per share already paid, the total dividend payout for FY26 will amount to ₹51 per share, up 82.1% from the previous year.