Escorts Kubota (ESCORTS) investor relations material

Executive summary

• Standalone operating revenue for Q1 FY26 was INR 2,483.4 crore, with consolidated revenue at INR 2,500.1 crore, showing a slight year-over-year increase and sequential growth.

• EBITDA rose 2.6% year-over-year to INR 325 crore, with margin improving to 13.1%.

• Net profit from continuing operations reached INR 372.6 crore, while total net profit surged to over INR 1,200 crore due to a one-time gain from the RED Business sale.

• EPS increased significantly, with Q1 FY26 EPS at INR 33.87 and consolidated EPS (including discontinued operations) at INR 102.23.

• The company completed the sale of its RED Business to Sona BLW Precision Forgings Limited for INR 1,600 crore, resulting in a substantial profit from discontinued operations.

Financial highlights

• Exceptional gain of INR 76 crore from sale of land and building in Agri Machinery Spare Parts division.

• Profit from discontinued operations (mainly RED Business) was over INR 1,000 crore.

• Agri Machinery EBIT margin improved to 12.6% due to lower material costs.

• Construction Equipment EBIT margin dropped to 5.8% from 10.3% year-over-year due to inventory clearance and emission norm transition.

• Consolidated total income for the quarter was INR 2,656.16 crore, up from the previous quarter.

Outlook and guidance

• Export volumes expected to grow 25–30% in FY26, with monthly exports stabilizing at 500–600 tractors.

• Full-year margin guidance remains at 12–12.5% despite rising metal prices.

• Tractor industry growth for FY26 guided at mid- to high single digits, with H2 growth expected to moderate due to a high base.

• Construction Equipment demand expected to improve in H2 FY26 as government CapEx increases.

• Management expects continued growth in agri machinery and construction equipment, focusing on operational efficiency post-amalgamation.