Escorts Kubota (ESCORTS) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 operating revenue rose 21.4% year-on-year to ₹2,950.7 crore, with EBITDA up 31.8% and PAT up 29.6% year-on-year from continuing operations.

• FY26 revenue reached ₹11,472.8 crore, EBITDA at ₹1,513 crore, and PAT from continuing operations at ₹1,380.9 crore, all up significantly year-on-year.

• Reported PAT including discontinued operations surged to ₹2,408.6 crore, driven by the sale of the Railway Equipment Division.

• Board recommended a final dividend of ₹33 per share, bringing the total FY26 payout to ₹51 per share, subject to AGM approval.

• Audited standalone and consolidated financial results for FY26 were approved with an unmodified audit opinion.

Financial highlights

• Q4 FY26 EBITDA margin improved to 13.1% (up 103 bps YoY); full-year margin at 13.2% (up 163 bps YoY).

• FY26 standalone net profit was ₹2,408.58 crore, consolidated net profit at ₹2,394.05 crore, both up sharply year-on-year due to the RED Business sale.

• FY26 EPS from continuing operations was ₹125.52, up 24.3% year-on-year; standalone EPS was ₹218.93, consolidated EPS was ₹217.61.

• Consolidated revenue for FY26 was ₹11,540.3 crore, up 12.7% year-on-year.

• Operating cash flow (standalone) for FY26 was ₹1,515.15 crore.

Outlook and guidance

• FY27 tractor industry expected to be flattish, with 2%-3% growth or decline; company confident of positive growth and market share gains due to new product launches and channel improvements.

• H1 FY27 expected to be stable, but H2 may see negative growth due to high base, potential subnormal monsoon, and commodity price increases.

• Board expects continued growth in core agri machinery and construction equipment segments post-divestment.

• Long-term tractor industry fundamentals remain strong, with mechanization and rural demand as key drivers.

• Dividend payout for FY26 totals ₹51 per share, including a special dividend.