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Escorts Kubota achieved its strongest financial performance in FY26, recording ₹11,472.8 crore in revenue from continuing operations, a 12.6% year-on-year rise, and net profit of ₹1,380.9 crore, up 24.4%. The company sold 133,670 tractors during the year, a record high, though growth lagged behind the overall industry's 23.4% expansion due to regional imbalances and supply constraints on new models. EBITDA margin improved to 13.2%, and the board recommended a dividend of ₹51 per share.
For FY27, management expects the domestic tractor market to remain flat, with a possible variation of ±2–3%, as the high base of 11.6 lakh industry units in FY26 and lingering El Niño risks weigh on rural demand. The U.S. NOAA forecasts a 61–70% chance of El Niño developing between June and August 2026, which could dampen kharif output and rural sentiment. The company anticipates a stronger first half followed by a significant decline in the second half, with CFO Bharat Madan citing rising input costs from steel, tyres, and labour contributing to margin pressure.
In response, Escorts Kubota is launching a series of new models across its Farmtrac, Powertrac, and Kubota brands within the next few months, including a paddy-special tractor developed with Kubota Japan to capture share in southern markets. Product development spending is set at over ₹250 crore, while total capex is projected at ₹350–400 crore, with an additional ₹500 crore allocated for a greenfield plant. The captive finance arm will receive ₹500 crore in fresh capital to support retail financing, and CE segment exports are targeted to double to 10% of sales by FY30.
The company's construction equipment segment faced a 10.6% volume decline in FY26, but Q4 showed recovery with 22.6% revenue growth and improved margins. Crane market share rose to 43.7% in the quarter. Management expects near-term demand challenges due to cost pass-through but sees medium-term recovery supported by government infrastructure projects.