Escorts Kubota (ESCORTS) Q2 25/26 earnings summary

Executive summary

• Standalone operating revenue for Q2FY26 was ₹2,777.4 crore, up 22.6% year-on-year, with EBITDA up 56% and net profit up 6.1% year-on-year; normalized profit grew 51.7% after adjusting for a one-time tax impact.

• Consolidated revenue reached ₹2,791.6 crore, up 22.6% year-on-year, with EBITDA margin at 12.9% and normalized net profit up 52.1% year-on-year.

• H1FY26 revenue increased 9.1% year-on-year to ₹5,260.8 crore, with EBITDA up 25.2% and normalized PAT up 31.6%.

• Tractor sales volumes grew 30.3% year-on-year in Q2FY26, while construction equipment volumes declined 17.8% year-on-year.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved, showing strong revenue and profit growth year-over-year.

Financial highlights

• Standalone EBITDA margin improved by 280 bps to 13.1% year-on-year.

• Q2FY26 normalised PAT was ₹321.2 crore, up 51.7% year-on-year (excluding prior period exceptional items).

• EPS for the quarter was ₹29.19 versus ₹29.71 year-on-year.

• Agri-machinery segment revenue rose 29.1% to ₹2,432.9 crore, with EBITDA margin up 368 bps to 12.8%.

• Construction equipment segment revenue was ₹338.1 crore, down from ₹379.9 crore year-on-year, with EBITDA margin dropping to 3.8% from 9.3%.

Outlook and guidance

• Tractor industry expected to sustain low double-digit growth for FY2026, supported by favorable agri conditions and government policies.

• Export growth guidance remains above 25% for the year, with strong performance in Europe and new market entry in Mexico.

• Construction equipment industry expected to recover in H2FY26 as new government projects mobilize.

• Management highlights operating leverage in agri machinery and expects continued growth in tractor volumes, while construction equipment remains challenged.

• The company completed the sale of its Railway Equipment Division (RED Business) for ₹1,600 crore, with the transaction reflected in the current period's results.