Escorts Kubota Reports Mixed Performance in June 2025 with Tractor Growth and Construction Equipment Decline

Escorts Kubota Limited announced its sales figures for June 2025, showing divergent performance across its two main business divisions. The Faridabad-based engineering conglomerate sold 11,498 tractors during the month, representing a 2.2% increase from the 11,245 units sold in June 2024.

The tractor business showed resilience despite challenging market conditions. Domestic tractor sales reached 10,997 units in June 2025, a marginal decline of 0.1% from 11,011 units in the previous year. However, export sales demonstrated strength with 501 tractors sold, marking a significant 114.1% increase from 234 units exported in June 2024.

The company attributed the positive sentiment in the agricultural sector to several factors. The timely arrival of the southwest monsoon, improved sown area for Kharif crops, and the government's announcement of higher Minimum Support Prices for the Kharif season collectively supported farmer confidence. The company expects continued industry growth based on predictions of above-normal monsoon conditions, higher water reservoir levels, and anticipated record Kharif harvests.

In contrast, the construction equipment division faced headwinds, selling 334 machines in June 2025 compared to 459 units in the same month of 2024, a decline of 27.2%. The construction equipment market is experiencing challenges due to slower construction activities caused by monsoon conditions, infrastructure project delays, and higher product prices resulting from emission regulation changes.

For the first quarter of fiscal year 2026 (April to June), tractor sales totaled 30,581 units, showing modest growth of 0.7% from 30,370 units in the corresponding period of the previous year. Construction equipment sales for the quarter reached 1,055 machines, down 23.7% from 1,382 units in the first quarter of fiscal 2025.

Escorts Kubota Limited, formerly known as Escorts Limited, operates as one of India's engineering conglomerates with eight decades of manufacturing experience. The company has diversified operations across agricultural mechanization and construction equipment sectors. The current sales figures include numbers from amalgamating companies following the National Company Law Tribunal's approval of a merger scheme in August 2024.

The company maintains an optimistic outlook for the construction equipment segment, citing the government's higher budgeted capital expenditure allocation for the current fiscal year. Management expects demand for construction equipment to improve following the monsoon season as infrastructure development activities resume.

Bharat Madan, Whole Time Director and Chief Financial Officer, signed the regulatory filing submitted to the BSE Limited and National Stock Exchange of India Limited in compliance with SEBI listing requirements.