Escorts Kubota reports strong Q2, H1 growth and significant board restructuring

Escorts Kubota Limited reported robust standalone financial results for Q2 FY26, with revenue from operations increasing by 22.6% YoY to INR 2,777.4 crore and EBIT rising by 51.7%. Total tractor sales grew by 30.3% YoY to 33,877 units, while construction equipment sales saw a decline of 17.8% to 1,146 units. For H1 FY26, standalone revenue was up 9.1% YoY to INR 5,260.8 crore, and EBIT increased by 32.4%. Consolidated results mirrored this positive trend, with Q2 FY26 revenue at INR 2,791.6 crore (22.6% YoY growth) and H1 FY26 revenue reaching INR 5,291.6 crore (9.1% YoY growth).

The company also announced significant structural changes. The National Company Law Tribunal approved the amalgamation of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited with Escorts Kubota Limited, effective September 1, 2024. Additionally, the board of directors approved the sale of its "RED Business" (railway equipment products) to Sona BLW Precision Forgings Limited for a cash consideration of INR 1,600 crore, with the transfer completed in Q1 FY26.

Board optimization also occurred, with the size reduced from 18 to 16 directors following the resignations of Mr. Manish Sharma and Mr. Dai Watanabe, in line with the Shareholders Agreement dated November 18, 2021. The financial results presented reflect these amalgamations and the discontinued operations from the RED Business.