Escorts Kubota (ESCORTS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 standalone revenue rose 16.3% YoY to ₹3,231.4 crore; EBITDA fell 19.5% to ₹292.4 crore and PAT fell 20.6% to ₹255 crore amid commodity, mix and overhead pressures.

• H1 FY27 continuing-operations revenue increased 21.9% to ₹6,410.3 crore; PAT before exceptional items rose 2.2% to ₹642.4 crore, against prior-year one-time gains and RED divestment effects.

• Construction Equipment growth offset softer tractor conditions; margins are expected to improve gradually from Q4 if commodity costs stabilize, moving closer to normal levels in FY28.

Financial highlights

• Standalone Q2 PBT was ₹344 crore vs ₹431.1 crore YoY; EPS was ₹23.18 vs ₹29.19, and EBITDA margin was 9.0% vs 13.1%.

• H1 standalone EBITDA was ₹647.8 crore at a 10.1% margin; PBT before exceptional items was ₹837.9 crore vs ₹849 crore.

• Consolidated Q2 revenue rose 16.2% to ₹3,243.4 crore; EBITDA fell 19.9% to ₹288 crore and PAT fell 21.3% to ₹250.2 crore.

• Consolidated H1 revenue rose 21.9% to ₹6,451 crore; EBITDA was ₹642.5 crore and PAT before exceptional items was ₹636.2 crore, up 2.2%.

Outlook and guidance

• FY27 domestic tractor industry outlook was revised to marginal low-single-digit degrowth; H2 is expected to decline double digits against a high base.

• Tractor margins may remain pressured in Q3; recent price increases are expected to contribute more fully in Q4 and support recovery.

• CE industry growth is forecast at 15%-16% in H2 FY27 after ~20% growth in H1; full-year growth is expected to remain positive.

• Export volumes may be flattish in FY27, with a possible recovery next fiscal; the next six months are supported by the existing order book.