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Escorts Kubota Ltd.
NSE: ESCORTSIndustrialsFarm & Heavy Construction Machinery
- Last close
- ₹2,627.00
- Day change
- −₹9.90 (−0.38%)vs
- Market cap
- ₹30,000 crIndian rupees
- Research updated
- 1 report
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About Escorts Kubota
Escorts Kubota Ltd. is a prominent player in the agricultural machinery and equipment sector. The company specializes in manufacturing a diverse range of products including tractors, crop solutions, construction equipment, and more. As part of its portfolio, Escorts Kubota Ltd. focuses on agricultural productivity by providing technologically advanced and efficient farm machinery, which plays a crucial role in enhancing the capabilities of the agricultural industry. Beyond agriculture, the company is also involved in the production of material handling and construction equipment, making it a vital contributor to the infrastructure and industrial segments. Headquartered in India, Escorts Kubota Ltd. is an integral part of the Indian industrial landscape and has a significant export market, reflecting its robust engineering capabilities and commitment to innovation. The company's collaboration with Kubota Corporation, a global leader in tractor manufacturing, further enhances its market position, allowing it to leverage international expertise and expand its reach within and beyond the Indian subcontinent.
- Sector
- Industrials
- Industry
- Farm & Heavy Construction Machinery
- Listing
- NSE: ESCORTS
- Next results
- Employees
- 4,323
- Headquarters
- Faridabad, India
- ISIN
- INE042A01014
- Website
- escortskubota.com
Public research · Report of
Business model & financial foundation
Escorts Kubota (NSE: ESCORTS), Tractors and construction equipment: revenue of ₹11,540 crore in FY26 (+12.7% on FY25), an EBITDA margin of 13.0%, net profit of ₹2,394 crore and net cash of ₹9,085 crore.
- Revenue, FY26 (₹ crore)
- 11,540
- consolidated
- Revenue growth, FY26
- +12.7%
- on FY25
- EBITDA margin, FY26
- 13.0%
- EBITDA (Operating EBITDA excluding other income) / revenue
- Net profit, FY26 (₹ crore)
- 2,394
- to owners
- Return on equity, FY26
- 21.1%
- on average equity
- Net debt, FY26 (₹ crore)
- -9,085
- Net debt / (net cash), treasury-inclusive
- Market capitalisation (₹ crore)
- 30,979
- at the close of 15 Oct 2026
Company profile
Manufactures tractors under Farmtrac, Powertrac and Kubota brands and construction equipment. Kubota is the controlling shareholder and a technology and export-channel partner. Earnings combine equipment margins and substantial treasury income; the Railway Equipment Division was sold in June 2025.
| Item | Value |
|---|---|
| Legal name | Escorts Kubota Limited (formerly Escorts Limited) |
| Exchange and ticker | NSE: ESCORTS; BSE: 500495 |
| ISIN | INE042A01014 |
| Sector | Industrials |
| Industry | Tractors and construction equipment |
| Headquarters | Faridabad, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | Walker Chandiok & Co LLP (since 2022) |
| Market capitalisation | ₹30,979 crore (15 Oct 2026) |
| Shares outstanding | 11.19 crore shares (FY26) |
| Price | ₹2,689 (close, 15 Oct 2026) |
| 52-week range | ₹2,550 - ₹3,988 (to 15 Oct 2026) |
| Website | https://www.escortskubota.com |
Corporate structure and shareholding
Parent: Kubota Corporation.
| Entity | Holding | Business |
|---|---|---|
| Farmtrac Tractors Europe | 100% | European tractor operations |
| Escorts Kubota Finance | 100% | Captive equipment finance |
| Escorts Crop Solutions | 100% | Crop solutions |
| Invigorated Business Consulting | 67.87% | Consulting |
| Adico Escorts Agri Equipments | 40% | Agricultural machinery joint venture |
| Escorts Consumer Credit | 29.41% | Credit associate |
EKIPL and KAIPL merged effective September 2024, appointed April 2023. RED divested June 2025. Treasury ESOP shares excluded from EPS denominator.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 68.04% | 68.04% | 68.04% | |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 5.25% | 5.71% | 6.36% | |
| Domestic institutions | 12.20% | 11.66% | 10.65% | |
| of which mutual funds | 10.24% | 9.82% | 9.49% | |
| Retail | 12.86% | 12.93% | 13.29% | |
| Other | 1.66% | 1.65% | 1.65% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Escorts Kubota earns from two segments. Agri Machinery (AM): Farmtrac, Powertrac and Kubota-branded tractors, plus spares and components. FY26 AM revenue was 9,841 cr with EBIT of 1,227 cr. Construction Equipment (CE: backhoes, cranes, compactors) had FY26 revenue of 1,686 cr and EBIT of 133 cr. Kubota Corporation owns 54.07% and the Nanda family promoter group 13.97%. Kubota is both supplier and channel: purchases from Kubota Corporation were 883 cr in FY26, and gross Kubota-group operating flows were 14.9% of standalone revenue. The Railway Equipment Division was sold to Sona Comstar on 1 June 2025 for 1,602 cr, a post-tax gain of 1,004 cr; it is reported as discontinued. The company is net cash: 9,085 cr at FY26 counting treasury investments, and other income of 566 cr was 31% of continuing PBT. Earnings therefore combine a cyclical equipment margin with a large treasury yield.
| Segment | revenue, FY26 (₹ crore) | Share | ebit, FY26 (₹ crore) | Share | ebit margin, FY26 (%) |
|---|---|---|---|---|---|
| Agri machinery products | 9,841 | 84.4% | 1,227 | 90.2% | 12.5% |
| Construction equipment | 1,686 | 14.5% | 133.1 | 9.8% | 7.9% |
| Railway equipment (discontinued, excluded from continuing sum) | 133.9 | 1.1% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Mahindra & Mahindra (M&M) | Domestic tractor leader, but diversified automotive business limits consolidated comparability |
| VST Tillers Tractors (VSTTILLERS) | Listed agricultural equipment specialist; smaller tiller-heavy mix |
| Action Construction Equipment (ACE) | CE and tractor exposure; cranes-heavy mix |
| BEML (BEML) | Secondary equipment benchmark, mining/defence and rail mix |
| Eicher Motors (EICHERMOT) | Secondary cyclical manufacturing/brand benchmark, not a tractor operating comparable |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from continuing operations | 7,083 | 8,281 | 9,804 | 10,244 | 11,540 |
| Cost of revenue (vendor classification) * | 5,063 | 6,230 | 6,201 | 7,359 | 8,151 |
| Other operating costs (vendor classification) * | 531.6 | 583.0 | 620.5 | 657.3 | 765.0 |
| EBITDA (vendor classification) * | 1,029 | 1,011 | 1,419 | 1,405 | 1,855 |
| EBIT * | 1,004 | 845.3 | 1,413 | 1,379 | 1,826 |
| Finance costs including bank charges | 11.6 | 10.8 | 41.7 | 29.2 | 20.4 |
| Continuing PBT after exceptional items | 992.8 | 834.6 | 1,256 | 1,351 | 1,811 |
| Continuing tax expense / (credit) | 257.2 | 197.9 | 313.4 | 227.0 | 444.3 |
| Profit from continuing operations | 735.6 | 636.7 | 943.0 | 1,124 | 1,366 |
| Diluted EPS, continuing operations (INR) | n.r. | n.r. | 85.78 | 102.2 | 124.2 |
| Materials, traded goods and inventory change | 6,962 | 7,255 | 8,035 | ||
| Employee benefits expense | 699.2 | 774.5 | 825.5 | ||
| Other operating expenses | 1,012 | 1,049 | 1,183 | ||
| Operating EBITDA excluding other income | 1,131 | 1,165 | 1,496 | ||
| Other income | 391.8 | 461.3 | 566.4 | ||
| Depreciation and amortisation | 224.1 | 243.7 | 255.1 | ||
| Exceptional gain / (loss) | 0.00 | -1.67 | 23.5 | ||
| Share of associates and JV profit / (loss) | -0.51 | -1.11 | 0.00 | ||
| Profit from discontinued operations after tax | 133.6 | 140.9 | 1,028 | ||
| Total profit attributable to owners | 1,077 | 1,265 | 2,394 | ||
| Diluted EPS continuing operations (₹) | 85.78 | 102.2 | 124.2 | ||
| Diluted EPS incl. discontinued operations (INR) | 73.73 | 58.76 | 97.93 | 115.0 | 217.6 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Equity attributable to owners | 7,596 | 8,183 | 9,389 | 10,367 | 12,373 |
| Borrowings excluding lease liabilities | 52.0 | 57.3 | 367.6 | 2.25 | 36.2 |
| Cash equivalents plus other bank balances | 91.5 | 182.2 | 1,206 | 1,124 | 839.4 |
| Trade receivables | 792.6 | 1,180 | 1,428 | 1,332 | 1,203 |
| Inventories | 846.6 | 1,218 | 1,716 | 1,399 | 1,472 |
| Trade payables, MSME and others | 714.4 | 949.6 | 1,650 | 1,640 | 2,193 |
| Net property, plant and equipment * | 1,735 | 1,782 | 1,776 | 1,981 | 2,071 |
| Capital work in progress * | 75.5 | 85.0 | 137.2 | 160.8 | 188.5 |
| Total assets * | 9,108 | 10,085 | 11,267 | 13,098 | 15,799 |
| Current and non-current investments | 5,019 | 5,605 | 8,281 | ||
| Net debt / (net cash), treasury-inclusive | -5,854 | -6,727 | -9,085 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities, reported group | 517.6 | -89.9 | 788.6 | 1,003 | 1,381 |
| Free cash flow (vendor definition) * | -154.1 | 5.12 | 842.3 | 747.5 | 1,064 |
| Dividends paid, cash outflow | -73.7 | -75.7 | -75.8 | -305.5 | -396.1 |
| Purchase of PPE and intangibles including advances | -162.7 | -184.8 | -283.2 | -255.7 | -317.3 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Issued fully paid shares at year end (crore shares) | 9.94 | 10.82 | 11.05 | 11.19 | 11.19 |
| Implied diluted continuing EPS denominator (crore shares) | 10.99 | 11.00 | 11.00 | ||
| Reported group CFO / continuing PAT (mixed scope) (fraction) | 0.84 | 0.89 | 1.01 | ||
| Reported group CFO / total group PAT (fraction) | 0.73 | 0.79 | 0.58 | ||
| Treasury-inclusive net debt / operating EBITDA (x) | -5.18x | -5.77x | -6.07x | ||
| Continuing operating EBIT / finance cost (x) | 21.8x | 31.6x | 60.8x | ||
| Closing receivables YoY growth (BS scope changes) (fraction) | n.r. | -0.07 | -0.10 | ||
| Restated continuing revenue YoY growth (fraction) | n.r. | 0.04 | 0.13 | ||
| Receivables YoY growth less revenue YoY growth (fraction) | n.r. | -0.11 | -0.22 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from continuing operations | 2,277 | 2,948 | 2,445 | 2,500 | 2,792 | 3,280 | 2,968 | 3,208 |
| Cost of revenue (vendor classification) * | 1,585 | 2,153 | 1,696 | 1,728 | 2,329 | 2,044 | 2,332 | |
| Other operating costs (vendor classification) * | 272.3 | 259.4 | 257.3 | 262.4 | 301.5 | 328.7 | 310.6 | |
| EBITDA (vendor classification) * | 345.8 | 442.2 | 419.7 | 477.5 | 589.1 | 502.2 | 562.3 | |
| Continuing operating EBIT excluding other income | 168.9 | 271.2 | 225.6 | 261.8 | 297.6 | 370.4 | 311.5 | 289.5 |
| Finance costs including bank charges | 9.79 | 3.54 | 5.14 | 3.99 | 4.56 | 6.36 | 5.52 | 5.19 |
| Continuing PBT after exceptional items | 275.0 | 377.1 | 350.9 | 489.9 | 427.3 | 466.0 | 427.6 | 492.1 |
| Continuing tax expense / (credit) | -25.2 | 89.2 | 79.3 | 120.5 | 109.1 | 107.6 | 107.1 | 106.2 |
| Profit from continuing operations | 300.2 | 287.9 | 271.6 | 369.5 | 318.1 | 358.3 | 320.5 | 385.9 |
| Diluted EPS, continuing operations (INR) | 27.27 | 26.17 | 24.69 | 33.57 | 28.91 | 32.56 | 29.12 | 35.07 |
| Materials, traded goods and inventory change | 1,585 | 2,153 | 1,696 | 1,728 | 1,934 | 2,329 | 2,044 | 2,332 |
| Employee benefits expense | 190.2 | 203.2 | 204.2 | 188.1 | 207.6 | 215.1 | 214.7 | 210.5 |
| Other operating expenses | 272.3 | 259.4 | 257.3 | 262.4 | 290.5 | 301.5 | 328.7 | 310.6 |
| Operating EBITDA excluding other income | 229.9 | 332.7 | 287.5 | 321.4 | 359.7 | 434.7 | 380.5 | 354.5 |
| Other income | 116.0 | 109.9 | 132.5 | 156.1 | 134.3 | 154.4 | 121.7 | 207.8 |
| Depreciation and amortisation | 61.1 | 61.5 | 62.0 | 59.6 | 62.2 | 64.3 | 69.1 | 65.0 |
| Total profit attributable to owners | 324.2 | 320.6 | 318.4 | 1,397 | 318.2 | 358.3 | 320.5 | 385.9 |
| Diluted EPS continuing operations (₹) | 27.27 | 26.17 | 24.69 | 33.57 | 28.91 | 32.56 | 29.12 | 35.07 |
| Exceptional gain / (loss) | 0.00 | 0.00 | -1.67 | 76.0 | 0.00 | -52.5 | 0.00 | 0.00 |
| Share of associate and JV profit / (loss) | -0.11 | -0.45 | -0.28 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit from discontinued operations after tax | 24.0 | 32.7 | 46.8 | 1,028 | 0.00 | 0.00 | 0.00 | 0.00 |
| Diluted EPS incl. discontinued operations (INR) | 29.46 | 29.14 | 28.94 | 127.0 | 28.91 | 32.56 | 29.12 | 35.07 |
Consolidated, restated. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 2.9% | 16.9% | 18.4% | 4.5% | 12.7% |
| EBITDA margin | 11.5% | 11.4% | 13.0% | ||
| Net margin | 11.0% | 12.3% | 20.7% | ||
| Return on equity | 12.3% | 12.8% | 21.1% | ||
| Return on capital employed | 15.8% | 10.6% | 15.7% | 13.7% | 16.0% |
| Return on assets | 10.1% | 10.4% | 16.6% | ||
| Net debt (₹ crore) | -5,854 | -6,727 | -9,085 | ||
| Net debt / EBITDA | -5.18x | -5.77x | -6.07x | ||
| Interest cover | 86.8x | 78.6x | 33.9x | 47.3x | 89.4x |
| Asset turnover | 0.89x | 0.86x | 0.92x | 0.84x | 0.80x |
| Receivable days | 41 | 52 | 53 | 47 | 38 |
| Inventory days (on revenue) | 44 | 54 | 64 | 50 | 47 |
| Payable days (on revenue) | 37 | 42 | 61 | 58 | 69 |
| Cash conversion | 0.73x | 0.79x | 0.58x | ||
| Capex intensity | 2.3% | 2.2% | 2.9% | 2.5% | 2.7% |
| Free cash flow (₹ crore) | 354.9 | -274.7 | 505.4 | 747.5 | 1,064 |
| Dividend payout | 7.0% | 24.1% | 16.5% | ||
| EPS, diluted (₹) | 85.78 | 102.2 | 124.2 | ||
| Book value per share (₹) | 7,63,84,67,108 | 7,56,19,90,574 | 8,49,65,22,855 | 9,26,61,85,304 | 11,05,92,40,606 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (Operating EBITDA excluding other income) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Net debt / (net cash), treasury-inclusive.
- Net debt / EBITDA: net debt / EBITDA (Operating EBITDA excluding other income).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS, continuing operations (INR)).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 15 Oct 2026); market data at the close of 15 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Escorts Kubota includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Escorts Kubota
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 15 Oct 2026; page updated 25 Oct 2026.
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