Escorts Kubota (ESCORTS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered strong revenue and profit growth, with standalone operating revenue at ₹3,261.4 crore (up 11.1% YoY) and EBITDA at ₹438.7 crore (up 30.9% YoY), marking record quarterly EBITDA.

• Net profit from continuing operations reached ₹362.4 crore (up 24.7% YoY); adjusted for a one-time labour code impact, net profit was ₹401.6 crore (up 38.3% YoY), the highest ever quarterly PAT.

• The board declared a one-time special dividend of ₹18 per share following the railway business divestment.

• The company completed the sale of its railway equipment division for ₹1,600 crore and integrated two Kubota entities, impacting reported figures.

• Approved phased investment for land acquisition and a new greenfield plant to expand production capacity.

Financial highlights

• Consolidated revenue from continuing operations was ₹3,280.5 crore, up 11.3% YoY; consolidated EBITDA stood at ₹434.7 crore.

• Reported consolidated net profit was ₹358.3 crore, up 11.8% YoY; normalized profit grew 38.1% YoY after adjusting for the labour code impact.

• EPS including discontinued operations was ₹32.93, up from ₹29.39 YoY.

• Exceptional expense of ₹52.46 crore in Q3 FY26 due to new labour code implementation.

• Gain of ₹75.99 crore in the nine months ended December 31, 2025, from sale of land and buildings.

Outlook and guidance

• Tractor industry momentum is expected to sustain, with the domestic industry likely to reach a new peak of 11.5 lakh units in FY26, supported by favorable policies and robust crop yields.

• Management expects robust growth in Q4 and Q1, but is cautious for FY27 due to high base and dependency on monsoon and subsidies.

• Greenfield project to enhance tractor capacity by 60,000 units and construction equipment by 15,000 units per annum within 7 years, with an initial investment of ₹593 crore and total outlay of ₹2,268 crore.

• Export momentum is expected to continue with double-digit growth.

• Expansion aims to meet domestic and global market growth plans.