SYNOPSIS: Escorts Kubota reported mixed Q2 FY26 results, with revenue rising 23 percent YoY to Rs. 2,791.6 crores and EBITDA up 56 percent YoY to Rs. 360 crores, while net profit declined 77 percent QoQ to Rs. 318 crores.
During Tuesday’s trading session, shares of a premier engineering conglomerate engaged in delivering solutions in agricultural and construction equipment are in focus on the stock exchanges, after reporting mixed Q2 FY26 financial results.
With a market cap of Rs. 42,291 crores, shares of Escorts Kubota Limited closed in the red at Rs. 3,780.1 on BSE, down by around 2 percent, compared to its previous closing price of Rs. 3,846.25.
The stock has delivered positive returns of more than 1 percent in one year, and has gained nearly 7 percent in the last one month.
What’s the News:
Escorts Kubota Limited announced the financial results for the second quarter of FY26 on Tuesday during market hours, as per the latest regulatory filings with the stock exchanges.
For Q2 FY26, the company posted a consolidated revenue from operations of Rs. 2,791.6 crores, reflecting a significant sequential rise of nearly 12 percent QoQ compared to Rs. 2,500 crores in Q1 FY26, as well as a year-on-year growth of around 23 percent from Rs. 2,277 crores recorded in Q2 FY25.
During the quarter, Escorts Kubota delivered a net profit of Rs. 318 crores, representing a decrease of more than 77 percent QoQ from Rs. 1,397 crores and a marginal decline of nearly 2 percent YoY from Rs. 324 crores.
In the previous year, the discontinued operations had delivered a significantly higher PAT of Rs. 1,027.6 crore, reflecting a substantial year-on-year decline in profitability from discontinued segments. However, excluding this impact, the decline would have been limited to nearly 14 percent QoQ instead of the reported 77 percent to Rs. 318 crores in Q2 FY26.
During the first half ended September 2025, the Railway business divestment was concluded in accordance with the conditions outlined in the Business Transfer Agreement (BTA), and the income of Rs. 1,601.7 Crore (net of transaction cost) from the divestment has been accounted for in the financial results under discontinued operations.
For Q2 FY26, the company reported an EBITDA of Rs. 360 crore, reflecting a strong 56.4 percent year-on-year growth compared to Rs. 230 crore in Q2 FY25, and a 12 percent sequential increase from Rs. 321.4 crore in Q1 FY26.
Further, its EBITDA margin improved to 12.9 percent in Q2 FY26, expanding by 279 basis points YoY, while remaining stable sequentially with a marginal 3 bps improvement.
For Q2 FY26, the company reported a total segment revenue of Rs. 2,791.6 crore, with the Agri Machinery Products segment remaining the primary contributor, generating Rs. 2,446.2 crore, accounting for ~87.6 percent of total revenue. The Construction Equipment segment contributed Rs. 338.1 crore, representing around 12.1 percent, while Unallocated revenue stood at Rs. 7.24 crore, forming about 0.3 percent of the total.
In the Agri Machinery Products division, tractor sales volumes stood at 33,877 units during the quarter ended September 2025, marking a 30.3 percent year-on-year growth compared to 25,995 units in the corresponding quarter of the previous year, and a 10.8 percent sequential increase over 30,581 units in the preceding quarter.
In the Construction Equipment segment, sales volumes were reported at 1,146 units in Q2 FY26, compared to 1,394 units in the corresponding period last year and 1,055 units in the previous quarter, indicating a moderate sequential improvement despite a year-on-year decline.
As per the September 2025 shareholding pattern, the ace investor Rekha Jhunjhunwala holds a 1.53 percent stake in Escorts Kubota Limited.
Escorts Kubota Limited is primarily engaged in the business of manufacturing of agricultural tractors, engines for agricultural tractors, construction, earth moving and material handling equipment, round and flat tubes, heating elements, double acting hydraulic shock absorbers for railways coaches, centre buffer couplers, automobile shock absorbers, telescopic front fork & Mcpherson struts, brake block, internal combustion engines and all types of brake used by railways.
The company also trades in oils & lubricants, implements, trailers, tractors, compressor accessories and spares, construction, earth moving and material handling equipment.
Written by Shivani Singh
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