1. Opening Hook
Just when India was arguing online about whether tractors should have mood-lighting like premium SUVs, Escorts Kubota quietly dropped a quarter where margins jumped280 bpslike they were auditioning for India’s Got Talent. Revenue up, EBITDA booming, and industry growth hotter than October’s festive offers — perfect backdrop for a little sarcasm.
As theBhagavad Gitareminds:“Action should be taken without attachment to results.”Clearly, management read it but didn’t follow it — because they’re very attached to this quarter’s results.
Stick around… the spicy bits come later. 🌶️
2. At a Glance
- Revenue – INR 2,777 Cr– Shot up 22.6%; CFO swears no jugaad, just tractors flying off shelves.
- EBITDA – INR 363 Cr– Up 56%; margins did weight-loss while profits bulked up.
- EBITDA Margin – 13.1%– Expanded 280 bps; rare sight: costs behaving.
- Net Profit – INR 321 Cr– Up only 6%; tax adjustments played kabaddi with comparisons.
- Tractor Volumes – 33,877 units– Up 30%; villagers buying 50 HP tractors like they’re iPhones.
- CE Margins – Crashed to 3.8%– Extended monsoon + BS-V = vibes not matching volumes.
- Market Share – 11.28%– Stable, finally not slipping like a monsoon road.
3. Management’s Key Commentary (with translations)
“Operating revenue grew 22.6% YoY.”(Translation: Thank festive season, GST cuts, and farmers choosing horsepower upgrades like gym bros.)
“Tractor industry grew 28%—domestic 30.7%.”(Translation: Rain gods and reservoir levels did more than any marketing agency.)
“Customers are shifting to higher HP tractors.”(Translation: Farmers want ‘more power’ — desi Tim ‘The Toolman’ vibes.)
“Farmtrac and Kubota product launches seeing strong early traction.”(Translation: Finally, something other than Powertrac to talk positively about.)
“CE margins fell due to low production and BS-V transition.”(Translation: The CE business basically took a sick leave this quarter.) 😏
“Export momentum strong; Europe and Mexico leading.”(Translation:
EU farmers love Made-in-India torque.)
“Localizing Kubota engines isn’t viable yet.”(Translation: Still too expensive; we’ll stick to importing and praying FX behaves.)
“Electric tractors not happening for India.”(Translation: Battery cost = tractor cost → farmer says ‘no thank you.’)*
4. Numbers Decoded
Metric | Value Q2 FY26 | YoY Change | One-Line Analysis
---------------------------|--------------------|-------------|-------------------------------
Revenue | ₹2,777 Cr | +22.6% | GST cut + pre-festive rush = boom.
EBITDA | ₹363 Cr | +56% | Margins returned from vacation.
EBITDA Margin | 13.1% | +280 bps | Material cost eased, leverage kicked.
PAT | ₹321 Cr | +6% | Last year’s tax quirks haunt optics.
Tractor Volume | 33,877 units | +30.3% | Farmers went shopping early.
CE Volume | 1,146 units | -17% | BS-V + rain = CE in timeout corner.
Agri Machinery Revenue | ₹2,432 Cr | +29% | The golden goose still laying eggs.
Export Volume | 1,548 units | +26% | Kubota network = passport to growth.Post-table jab:CE business needs a therapist; agri division is carrying the family.
5.
