Escorts Kubota (ESCORTS) Q1 25/26 earnings summary

Executive summary

• Standalone operating revenue for Q1 FY26 was INR 2,483.4 crore, with consolidated revenue at INR 2,500.1 crore; EBITDA at INR 325 crore, up 2.6% YoY, and EBITDA margin at 13.1%, up 69 bps YoY.

• Net profit from continuing operations at INR 372.6 crore, up 40% YoY; consolidated net profit including discontinued operations at INR 1,400.2 crore, driven by exceptional gains from asset sales.

• Completion of the Railway Equipment Division (RED) sale to Sona Comstar for INR 1,600 crore, resulting in a one-time profit after tax of INR 1,004.4 crore.

• Amalgamation of Escorts Kubota India Pvt Ltd and Kubota Agricultural Machinery India Pvt Ltd with Escorts Kubota Limited, with restated financials.

• Tractor sales volumes grew 0.7% YoY and 14.8% QoQ, while construction equipment volumes fell 23.7% YoY and 38.6% QoQ.

Financial highlights

• Standalone EBITDA reached INR 325 crore, up 2.6% YoY and 11.0% QoQ; consolidated EBITDA at INR 321.4 crore (12.9% margin, up 16 bps YoY).

• PAT from continuing operations was INR 372.6 crore, up 40% YoY and 48.6% QoQ; EPS for Q1FY26 was INR 33.87, a 39.8% YoY increase.

• Consolidated total income for the quarter was INR 2,656.16 crore, up from INR 2,577.35 crore in the previous quarter.

• Other income increased due to trading surplus from railway business sale and mark-to-market gains.

• CapEx for the fiscal expected at INR 350-400 crore, excluding greenfield land acquisition.

Outlook and guidance

• Full-year margin guidance remains around 22.5% for overall business.

• Tractor industry expected to grow mid to high single digits for FY26; H2 growth may flatten due to high base.

• Construction equipment demand expected to improve in H2 FY26 as government CapEx increases.

• Export revenue targeted to reach 15% of total revenue in the mid-term (currently 5-6%).

• Focus on operational efficiency and growth in agri machinery and construction equipment post-amalgamation.