Escorts Kubota (ESCORTS) Q4 24/25 earnings summary

Executive summary

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

• Q4 FY25 standalone revenue rose 6.1% YoY to ₹2,430.3 crore; net profit from continuing operations up 0.9% YoY to ₹250.7 crore; sequentially, revenue fell 17.2% and PAT dropped 7.9%.

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

• Board recommended a final dividend of ₹18 per share, total payout for FY25 at ₹28 per share, up 56% YoY.

• Completed amalgamation of Escorts Kubota India Pvt Ltd and Kubota Agricultural Machinery India Pvt Ltd, with prior period results restated.

Financial highlights

• Q4 FY25 consolidated revenue up 6.3% YoY to ₹2,444.9 crore; PAT up 11.6% YoY to ₹271.6 crore.

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

• Standalone EBITDA for Q4 FY25 at ₹292.9 crore, up 0.7% YoY; EBITDA margin at 12.1%.

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

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

Outlook and guidance

• Tractor industry expected to grow mid- to high single digits in FY26, with favorable macroeconomic factors and above-normal monsoon forecast.

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

• Margins expected to remain stable with potential for 0.5%-1% improvement, subject to commodity prices and product mix.

• Construction equipment demand anticipated to recover in the second half of FY26 as government CapEx flows materialize.

• Management will continue to evaluate options for underperforming investments.