Escorts Kubota Ltd. announced on Friday, April 3, that its agricultural machinery business division will increase tractor prices from this month. According to reports from CNBC TV18 and The Hindu BusinessLine, the price increase will apply to tractors under the Escorts brand, excluding the Kubota brand. The price adjustment will be implemented from April 15, 2026, with variations across different models, variants, and geographical regions. Management stated that the extent of this price adjustment will vary based on specific models, variants, and the geographic region, reflecting the company's ongoing efforts to manage operational costs and market conditions. The company clarified that there will not be a flat-rate increase across the entire portfolio, instead implementing a differentiated approach varying across distinct models, tractor variants, and geographies.
The company reported total sales of 12,119 units in March 2026, representing a 6.6% increase from 11,374 units sold in the same period last year. As reported by CNBC TV18 and The Hindu BusinessLine, this growth demonstrates continued momentum in the agricultural machinery segment despite the upcoming price adjustments. The domestic tractor sales specifically reached 11,582 units, registering a 7.5% growth compared to 10,775 units in March 2025. This performance was supported by sustained rural demand and the gradual onset of Rabi harvesting in select regions, with harvesting activities experiencing a slight delay due to recent rainfall. The overall Rabi outlook remains positive, aided by above-normal reservoir levels across the country, with improved water availability and strengthening farm sentiment expected to continue momentum in coming months.
Despite strong domestic performance, export shipments declined to 537 units in March 2026 from 599 units in the year-ago period, as reported by The Hindu BusinessLine. The company flagged potential risks from the evolving geopolitical situation, including possible disruptions in the availability of key fertilizers, which could affect preparedness for the upcoming kharif season. However, brokerage firm Kotak Institutional Equities recently upgraded its rating on Escorts Kubota to 'add' from 'sell' with a price target of ₹3,375 per share. The brokerage cited that the company's core drivers remain intact, with tractor demand becoming less dependent on monsoon variability due to structural buffers including MSP support, irrigation, income diversification, non-agricultural usage, and improved finances.
The company's consolidated net profit increased 11.8% to ₹358.32 crore in Q3 FY26 over Q3 FY25, while net sales jumped 11.3% to ₹3,280.49 crore. As reported by CNBC TV18, this strong financial performance was driven by the thriving tractor business amid favorable agricultural conditions. The company's diversification into spares, engines and agri-solutions is expected to help broaden the revenue base. However, the evolving geopolitical situation poses intermittent supply-side risks, including potential non-availability of key fertilizers which could impact Kharif crop preparedness. The construction equipment business division showed resilience with 588 machines sold in February 2026, registering 4.8% growth from 561 machines in February 2025.
