Escorts Kubota Ltd. shares fell sharply on Thursday, hitting their day's low of ₹2,550 on the BSE after the company reported a 16.7% year-on-year decline in total tractor sales to 15,214 units in September 2026, compared with 18,267 units a year ago. According to The Economic Times, the stock was trading at ₹2,550 at the day's low, down 6% from its previous close. The company attributed the September 2026 performance to a high base following GST rate reduction in September 2025, shift in festive season to October 2026, patchy monsoon conditions, and relatively lower Kharif sowing. The company expects festive demand, crop harvesting and improving rural liquidity to support industry volumes, though high base effects may continue to moderate growth in the near term.
The company's domestic tractor sales stood at 14,911 units in September 2026, compared with 17,803 units year earlier, declining by 16.2% year-on-year. As reported by The Economic Times, export sales also slumped 35% to 303 tractors from 464 units year earlier. Escorts Kubota stated that the September 2026 performance was not comparable with the year-ago sales due to high base following GST rate reduction in September 2025, shift in festive season to October 2026, patchy monsoon conditions, and relatively lower Kharif sowing. The company expects festive demand, crop harvesting and improving rural liquidity to support industry volumes.
Despite the monthly decline, domestic tractor sales for the first six months of fiscal 2027 rose 11.3% to 68,085 units from 61,177 units in the year-ago period. According to The Economic Times, total tractor sales during April-September increased 10% to 70,879 units from 64,458 units. The company's construction equipment business showed significant improvement with 795 machines sold in September 2026, compared to 413 machines a year earlier, logging a 92.5% year-on-year rise. This represents the highest-ever September monthly sales for the construction equipment division.
The construction equipment sales for April-September period stood at 3,108 machines, up 41.2% from 2,201 machines in the corresponding period last year. As reported by The Economic Times, Narendra Solanki, Head – Fundamental Research at Anand Rathi Share and Stock Brokers, expects domestic momentum to remain strong in the near term, driven by end-user demand and inventory stocking ahead of the festive season. However, he expects some moderation in the second half of FY27 due to the higher base last year. "Although domestic momentum is expected to remain strong on the back of both end-user demand and inventory stocking ahead of the festival season, there could be some moderation in the second half of FY27 due to the high base last year. Overall, premiumisation, rural recovery and the shift towards EVs should continue to provide momentum to the sector," Solanki said.
