Escorts Kubota (ESCORTS) Q4 24/25 earnings summary

Executive summary

• Achieved record FY25 financial performance with consolidated revenue of ₹10,243.88 crore and net profit of ₹1,264.95 crore, following a successful merger and launch of captive finance arm EKFL.

• Board recommended a final dividend of ₹18 per share, totaling ₹28 per share for FY25, up 56% year-over-year.

• FY25 standalone revenue grew 4.7% YoY to ₹10,187.0 crore, EBITDA up 4.0% YoY, and PAT up 15.7% YoY.

• The company completed the amalgamation of Escorts Kubota India Pvt Ltd and Kubota Agricultural Machinery India Pvt Ltd, with restated financials.

• Board approved the sale of the Railway Equipment Division to Sona BLW Precision Forgings for ₹1,600 crore, now classified as discontinued operations.

Financial highlights

• Q4FY25 standalone revenue: ₹2,430.3 crore, up 6.1% YoY; EBITDA: ₹292.9 crore, up 0.7% YoY; EBITDA margin: 12.1%.

• Q4FY25 consolidated revenue: ₹2,444.9 crore, up 6.3% YoY; PAT: ₹271.6 crore, up 11.6% YoY.

• FY25 consolidated revenue: ₹10,243.9 crore, up 4.5% YoY; PAT: ₹1,124.1 crore, up 19.2% YoY.

• EPS (basic) for FY25: ₹115.04, up from ₹98.10 in FY24.

• Cash flow from operations: ₹1,003.19 crore, up from ₹788.60 crore YoY.

Outlook and guidance

• Tractor industry expected to grow in FY26, supported by favorable macroeconomic factors and above-normal monsoon forecast.

• Export growth guidance of 20%-25% for FY26, with new markets like Mexico and South Africa opening.

• Construction equipment demand expected to recover in H2 FY26 as emission norm transition stabilizes and government capex flows materialize.

• EBIT margins for agri machinery expected to remain in the 11.5%-13% range until Kubota product localization is achieved in 2 years.

• Management will continue to evaluate options for underperforming investments.