1. At a Glance – Tractor Titan with a Japanese Engine Upgrade
₹40,757 crore market cap. ₹3,643 stock price. P/E of 31.2. ROCE at 13.6%. Debt-to-equity a laughable 0.01. And Q3 FY26 sales at ₹3,280 crore with PAT of ₹358 crore.
Ladies and gentlemen, this is not your average tractor company. This is Escorts Kubota Ltd, the desi engineering veteran that married Japanese precision and decided to flex.
Q3 FY26 delivered:
Revenue up 11.3% YoY
PAT up 38.5% YoY
EPS ₹32.03 for the quarter
Special dividend ₹18 per share
₹2,268 crore greenfield capex DPR approved
₹1,601.7 crore railway divestment
Oh, and promoters hold 68.04%, with Kubota Corporation sitting comfortably at 54.07%.
Return in 1 year? 22.2%. Return in 3 years? 21.1% CAGR. 5-year stock CAGR? 21%.
So the question is simple: Is this a cyclical tractor company… or a stealth capital goods machine quietly upgrading itself?
Let’s lift the bonnet.
2. Introduction – From Faridabad to Tokyo
Escorts started life as a classic Indian engineering conglomerate.
Then Kubota Corporation from Japan entered like that disciplined topper who sits in the first bench and starts reorganising the entire classroom.
In Feb 2022, Kubota bought 93.6 lakh shares at ₹2,000 per share for ₹1,872 crore. Open offer followed. Stake increased to 53.5% by March 2024.
Today, Kubota owns 54.07%.
This is no loose partnership. This is a control-level integration.
What’s the plan?
2.5x revenue by 2028
Global R&D centre
Products for Kubota, Farmtrac, Powertrac
3 lakh tractors per annum capacity by FY28
₹350–400 crore annual capex
And now, Q3 FY26 just approved:
154-acre land purchase
₹593 crore initial spend
DPR of ₹2,268 crore for greenfield plant
This is not maintenance capex. This is “let’s build the next decade” capex.
But before we celebrate — let’s see if numbers justify ambition.
3. Business Model – WTF Do They Even Do?
Three segments. One big engine.
1) Agri Machinery (70% revenue)
This is the tractor business. Tractors, engines, implements, spare parts, lubes.
