1. Opening Hook
While the Sensex was celebrating Diwali in advance, Escorts Kubota quietly revved up its tractor engines. The CFO, with Zen-like calm, declared a 56% jump in EBITDA — as if that happens every season. Construction equipment sulked in a corner, but tractors were out doing wheelies. Somewhere, a farmer probably upgraded from 40 HP to 55 HP just because GST said so.As theBhagavad Gitareminds us — “You have the right to work, but not to the fruits thereof.” Seems like Escorts took that literally… but with fatter fruits this quarter.Stick around — the drama gets juicier as margins and machinery trade punches later.
2. At a Glance
- Revenue up 22.6%:Tractor wheels spun faster than CFO’s calculator.
- EBITDA up 56%:The fields weren’t the only things yielding better crops.
- EBITDA Margin 13.1% (+280 bps):Fertilized by efficiency and deflation.
- PBT up 55.2%:Treasury returns slowed, but profits plowed through.
- PAT up 6.1%:Adjusted profit grew 51.7% — tax tweaks can’t dull this shine.
- Stock mood:Investors already sowing next season’s optimism seeds. 🌾
3. Management’s Key Commentary
“Operating revenue grew 22.6% YoY to ₹2,777 crore.”(Translation: The tractors did cardio while CE snoozed.)
“EBITDA margins improved by 280 bps due to better cost control.”(Translation: Inflation took a sabbatical, finally.)
“Tractor industry up 28%; our volume grew 30.3%.”(Translation: Beat the industry — we flexed, politely.) 😏
“CE business revenue fell 11%, margins down to 3.8%.”(Translation: Cranes forgot to lift profits.)
“GST cut boosted sentiment — customers moving to higher HP tractors.”(Translation: Indians don’t just upgrade phones anymore.)
“Exports up 26%, 52% via Kubota’s global network.”(Translation: Japanese efficiency meets Indian horsepower.)
“EV tractors? Still parked. Too costly for rural sockets.”*(Translation: Until farmers get Tesla chargers, it’s diesel forever.) ⚡️
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Growth | Comment |
|---|---|---|---|
| Revenue | ₹2,777 Cr | +22.6% | Tractor boom led the parade |
| EBITDA | ₹363 Cr | +56% | Margin upgrade party |
| EBITDA Margin | 13.1% | +280 bps | Deflation gift-wrapped |
| PAT | ₹321 Cr | +6.1% (Adj +52%) | One-time tax ghosts exorcised |
| Tractor Volume | 33,877 units | +30% | Farmers upgraded horsepower |
| CE Volume | 1,146 units | -18% | Monsoon hangover continues |
| Export Volume | 1,548 units | +26% | Kubota turbo mode engaged |
Margins got fertilizer, CE got frostbite, and exports found their second wind. A true mixed harvest.
5. Analyst Questions
Q:“Will the tractor growth sustain?”A:“Double-digit growth likely; GST cut helped farmers dream bigger.”(Translation: Tax reform did what monsoon couldn’t.)
Q:“Why did treasury income fall?”A:“Mark-to-market hit; yields hardened.”(Translation: Even CFOs cry in bond markets.)
Q:“When will CE margins recover?”A:“By H2, back to high single digits.”(Translation: Cranes promise to lift spirits soon.)
Q:“New plant update?”A:“Land almost ready; Phase 1 soon.”(Translation: Bureaucracy runs slower than tractors.)
6. Guidance & Outlook
Escorts expects FY26 tractor industry growth inlow double digits, fueled by high water levels, robust crop yields, and an agriculture-friendly GST. Construction equipment
