Escorts Kubota shares declined 6% to hit a 52-week low following the company's September quarter results that showed significant profitability challenges. The company's net profit declined 21.4% year-on-year to ₹250 crore from ₹318 crore in the corresponding quarter last year, while EBITDA fell 20% to ₹288 crore compared with ₹360 crore a year ago. EBITDA margin contracted by 410 basis points to 8.9% from 13% in the year-ago quarter, as reported by CNBC TV18. The company attributed profitability pressures to elevated commodity costs and changes in product mix, with cost pressures remaining higher than anticipated despite ongoing operational efficiencies and cost optimization initiatives.
Despite the profitability challenges, Escorts Kubota achieved revenue from operations growth of 16.2% year-on-year to ₹3,243 crore in Q2 FY27, compared with ₹2,792 crore in the corresponding quarter last year, as reported by CNBC TV18. However, the EBIT margin fell to 7.8% from 12.8% a year ago and 10.8% in the previous quarter, primarily due to commodity cost inflation and product mix changes. The company expects margins to improve gradually from the March quarter and return closer to normal levels in FY28, assuming a stable commodity environment from Q4 onwards.
The company's tractor segment faced headwinds in October 2026, with total tractor sales declining 10% year-on-year to 16,921 units from 18,798 units in the year-ago period, according to The Economic Times. Domestic tractor sales fell 10.9% to 16,412 units compared to 18,423 units in October 2025, while exports rose 35.7% to 509 units from 375 units in the corresponding period. The industry witnessed some moderation in October 2026, impacted by a high base, shift in festive timing and monsoon-related disruptions. Elevated input costs due to geopolitical developments and consequent pricing actions may moderate demand in the near term.
For the first half ended September 2026, Escorts Kubota's consolidated revenue came in at ₹6,451 crore, up 21.9% year-on-year, compared with ₹5,291.6 crore in the corresponding period last year, as reported by The Economic Times. However, EBITDA declined 6% YoY to ₹642.5 crore for H1 FY27 from ₹681.1 crore in H1 FY26. Looking ahead, the company continues to focus on operational efficiencies and cost optimization initiatives across the business. Management expects margins to improve gradually from Q4 and return closer to normal levels in FY28, assuming a stable commodity environment from Q4 onwards, with the company's product pipeline and innovation roadmap continuing to support long-term growth ambitions.
Escorts Kubota shares were trading 5.72% lower at ₹2,429 as of 3:18 PM on November 2, 2026, according to The Economic Times. The stock has lost 6% in the past week and 9% over the month, and on a year-to-date basis, it has fallen 36%. The stock hit a 52-week high of ₹3,987.80 per equity share on January 6, 2026. The company has a total market capitalisation of ₹27,131.47 crore as of November 2, 2026, according to data on the NSE.
