Escorts Kubota (ESCORTS) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue from operations rose 21.4% year-on-year to ₹2,950.7 crore, with EBITDA up 31.8% and PAT up 29.6% year-on-year.

• FY26 revenue reached ₹11,472.8 crore, with EBITDA at ₹1,513.0 crore and PAT from continuing operations at ₹1,380.9 crore, up 24.4% year-on-year.

• Reported PAT including discontinued operations surged 92.5% year-on-year to ₹2,408.6 crore, driven by the sale of the Railway Equipment Division.

• Board recommended a final dividend of ₹33 per share, bringing the total FY26 dividend to ₹51 per share, subject to AGM approval.

• Audited standalone and consolidated financial results for FY26 were approved with an unmodified audit opinion.

Financial highlights

• Q4 EBITDA margin improved by 103 bps to 13.1% year-on-year; full-year EBITDA margin at 13.2%, up 163 bps.

• FY26 consolidated revenue from continuing operations at ₹11,540.3 crore, up 12.7% year-on-year.

• Standalone net profit for FY26 was ₹2,408.58 crore, compared to ₹1,250.92 crore in FY25, driven by the RED Business sale.

• Q4FY26 EPS was ₹29.52, up 29.5% year-on-year; FY26 EPS from continuing operations was ₹125.52, up 24.3% year-on-year.

• Operating cash flow (standalone) for FY26 was ₹1,515.15 crore, with cash and cash equivalents at ₹166.10 crore at year-end.

Outlook and guidance

• FY27 tractor industry expected to be flattish, with 2%-3% growth or decline; company confident of positive growth and market share gains due to new product launches and channel improvements.

• H1 FY27 expected to be stable, H2 likely to see negative growth due to high base and potential subnormal monsoon.

• Board expects continued growth in core agri machinery and construction equipment segments, following the divestment of the RED Business.