Escorts Kubota falls 5% despite 18% jump in Q4 profit; Axis Sec cuts target

Escorts Kubota share price today

Shares of farm and construction equipment maker Escorts Kubota declined over 5 per cent to hit an intraday low of ₹3,171 on the National Stock Exchange (NSE) after the company announced its March 2026 quarter results. 

 

Around 01:45 PM, the stock was trading at ₹3,174, down 5.15 per cent from the previous session's close of ₹3,345.90. In comparison, the benchmark NSE Nifty50 index was trading at 24,171.50 levels, down by 155 points or 0.64 per cent. On a year-to-date basis, the stock has declined around 10 per cent, compared to a 6.9 per cent decline in Nifty50.

 

 

The company's market capitalisation stood at ₹35,523 crore. Its 52-week high was ₹4,180, and its 52-week low was ₹2,710.  

Escorts Kubota Q4 results highlights

In the March 2026 quarter, Escorts Kubota reported consolidated profit after tax (PAT) grew 18 per cent to ₹320.5 crore, as compared to ₹271.6 crore in the year-ago period. 

 

However, its revenue from operations rose 21.4 per cent to ₹2,968.2 crore in the Q4FY26 from ₹2,444.9 crore in the corresponding quarter of the previous fiscal. 

 

Consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 32.3 per cent year-on-year (Y-o-Y) to ₹380.5 crore during the reported quarter. 

 

In the full FY26, the company's consolidated revenue from operations stood at ₹11,540 crore, up 12.7 per cent from ₹10,243.9 crore in the previous fiscal. 

 

Its Ebitda grew 28.4 per cent Y-o-Y to ₹1,496.4 crore from ₹1,165.3 crore in the FY25. Profit after tax stood at 1,366.4 crore in FY26, up 21.6 per cent from ₹1,124.1 crore in FY25. 

 

The company has recommended a final dividend of ₹33 (330 per cent) per equity share of ₹10 each for FY2025-26, subject to approval by shareholders at the upcoming Annual General Meeting (AGM).

 

Tractor volumes grew 21.1 per cent Y-o-Y to 32,257 units in the quarter, driving segment revenue to ₹2,395.7 crore. However, Ebit margin remained broadly stable at 11.3 per cent.

 

For FY26, tractor volumes increased 15.7 per cent to 1,33,670 units, with revenue rising 15.8 per cent to ₹9,779.6 crore. Annual Ebit margin improved by 190 basis points to 12.6 per cent.

 

In the construction equipment segment, volumes rose 9.2 per cent Y-o-Y to 1,877 units in Q4, with revenue increasing to ₹556.5 crore. Ebit margin improved sharply to 12.7 per cent from 9.1 per cent in the year-ago period. 

Axis Securities on Escorts Kubota

According to Axis Securities, the company delivered an in-line performance on revenue and Ebitda, while PAT came in below estimates in Q4FY26. The strong operational performance in Q4FY26 was driven by record tractor volumes, healthy export growth, and a sharp recovery in the Construction Equipment (CE) business. Long-term growth remains supported by planned greenfield expansion and deeper integration with Kubota’s global operations.

 

The brokerage said that the company's management remains focused on long-term growth drivers, including new product launches, localisation, export expansion, captive financing, and planned greenfield capacity additions. However, it expects the domestic tractor industry to remain broadly flat in FY27, impacted by a high base, commodity inflation, and monsoon-related uncertainties. This, along with stretched valuations, may cap near-term upside.

 

Post Q4FY26, the brokerage has revised its estimates, cutting FY27E/FY28E revenue by 4 per cent/5 per cent, Ebitda by 14 per cent/14 per cent, and PAT by 0 per cent/2 per cent.

 

"While the company is expected to benefit from new product launches, improving export traction, and recovery in the CE segment, near-term moderation in industry growth, rising commodity costs, and elevated valuations limit meaningful upside from current levels, with valuations appearing largely full," the brokerage said in its note.

 

Axis Securities has maintained its valuation at 26x FY28E EPS. It revised the target price to ₹3,530 per share from ₹3,590 earlier. The brokerage has retained its ‘Hold’ rating on the stock.      =======================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.