Escorts Kubota Reports Strong Growth in February 2025 Tractor Sales, Construction Equipment Faces Headwinds

Escorts Kubota Limited, one of India's leading engineering conglomerates, has reported a strong rebound in tractor sales for February 2025, with overall volumes growing by 11.4% compared to the same period last year. This marks a significant turnaround from January's performance when the company experienced a 6.7% decline in tractor sales.

According to the company's latest regulatory filing dated March 1, 2025, Escorts Kubota's Agri Machinery Business Division sold 8,590 tractors in February 2025, up from 7,709 units sold in February 2024.

Domestic tractor sales showed solid growth of 9.6%, with 7,968 tractors sold compared to 7,269 units in the previous year. The company noted that while demand remained strong in its core markets, the Western region faced some pressure due to lower crop prices affecting liquidity.

Export performance was particularly impressive, with overseas tractor sales surging by 41.4% to 622 units, compared to 440 tractors in February 2024. This continues the export momentum seen in January, when overseas sales had jumped by 66% year-on-year.

"With increased Rabi sowing, good water reservoir levels and favorable base effect, we anticipate growth momentum to continue in coming months," the company stated in its filing.

In contrast to the strong tractor segment performance, Escorts Kubota's Construction Equipment Business Division reported a 16.3% decline in sales, with 561 machines sold in February 2025 compared to 670 machines in the same month last year. This follows January's modest 1.8% decline in construction equipment sales.

The company attributed the construction equipment sector challenges to "short-term issues on account of rundown of old emission level inventories and price escalations due to the recent BS V changeover." Despite these temporary headwinds, Escorts Kubota remains optimistic about the sector's prospects, citing the government's continued focus on infrastructure development as evidenced in the Union budget.

For the cumulative April-February period of FY25, tractor sales have remained relatively stable with a marginal 0.3% decrease at 104,180 units compared to 104,508 units in the same period last fiscal year. Construction equipment sales for the same period totaled 5,870 units, reflecting an 8.4% decline from 6,407 units in FY24.

The February results demonstrate Escorts Kubota's ability to navigate market fluctuations and capitalize on favorable agricultural conditions despite facing challenges in certain segments. The company, with eight decades of manufacturing experience, continues to focus on its diversified business across agricultural mechanization, railway technology modernization, and construction equipment sectors.