Tractor volumes rise 21.1 per cent while annual profit doubles following railway business divestment

Escorts Kubota Limited reported a 29.6 per cent increase in standalone net profit from continuing operations for the fourth quarter of fiscal 2026, driven by strong growth in tractor sales, higher construction equipment volumes and improved operating performance.

The company posted standalone net profit from continuing operations of Rs 324.8 crore for the quarter ended March 2026, compared with Rs 250.7 crore in the corresponding period last year. Revenue from continuing operations rose 21.4 per cent year-on-year to Rs 2,950.7 crore during the quarter, while EBITDA increased 31.8 per cent to Rs 386 crore. EBITDA margin expanded by 103 basis points to 13.1 per cent.

Profit before tax and exceptional items stood at Rs 433.8 crore for the quarter, up 31 per cent from the same period last year. Escorts Kubota said the performance was supported by strong momentum in its agricultural machinery business, particularly tractors, alongside growth in construction equipment demand.

Tractor volumes during the quarter increased 21.1 per cent to 32,257 units compared with 26,633 units a year earlier. Construction equipment volumes rose 9.2 per cent to 1,877 units during the quarter.

For the full fiscal year ended March 2026, Escorts Kubota reported revenue from continuing operations of Rs 11,472.8 crore, up 12.6 per cent from the previous year.

Annual EBITDA from continuing operations rose 28.5 per cent to Rs 1,513 crore, while profit before tax excluding exceptional items increased 32.1 per cent to Rs 1,805.5 crore. Net profit after tax from continuing operations for the fiscal year rose 24.4 per cent to Rs 1,380.9 crore compared with Rs 1,110 crore in the previous year.

Earnings per share from continuing operations increased 24.3 per cent to Rs 125.52 for fiscal 2026. The company’s overall profitability received a major boost from the successful divestment of its railway business during the fiscal year.

Escorts Kubota said the railway business divestment was completed in accordance with the Business Transfer Agreement, generating income of Rs 1,601.7 crore net of transaction costs. As a result, standalone net profit after tax including discontinued operations and exceptional items surged 92.5 per cent year-on-year to Rs 2,408.6 crore for fiscal 2026.

Annual earnings per share, including discontinued operations, rose to Rs 218.93 compared with Rs 113.77 in the previous fiscal year. The company’s board recommended a final dividend of Rs 33 per share for fiscal 2026.

Including a previously declared and paid special dividend of Rs 18 per share, the total dividend payout for the year stands at Rs 51 per share, representing an increase of 82.1 per cent compared with the previous fiscal year.

Within the agricultural machinery segment, Escorts Kubota continued to benefit from strong tractor demand and operational efficiency improvements. Quarterly revenue from the agri machinery business rose to Rs 2,395.7 crore compared with Rs 1,974.8 crore in the corresponding quarter last year.

For the full year, tractor volumes increased 15.7 per cent to 133,670 units, while agri machinery segment revenue rose 15.8 per cent to Rs 9,779.6 crore. The segment’s EBIT margin improved significantly to 12.6 per cent for fiscal 2026, compared with 10.7 per cent in the previous year, reflecting operating leverage, improved product mix and cost optimisation measures.

On a consolidated basis, fourth-quarter revenue from continuing operations increased 21.4 per cent to Rs 2,968.2 crore. Consolidated net profit after tax from continuing operations rose 18 per cent to Rs 320.5 crore during the quarter. For the full fiscal year, consolidated revenue from continuing operations stood at Rs 11,540.3 crore, up 12.7 per cent, while consolidated net profit from continuing operations increased 21.6 per cent to Rs 1,366.4 crore.

Consolidated net profit including discontinued operations rose sharply to Rs 2,394.1 crore compared with Rs 1,265 crore in the previous year. Escorts Kubota said the company remains focused on strengthening its agricultural machinery portfolio, improving operational efficiency and expanding its leadership position across India’s farm mechanisation market.