Earning Call Transcript
ESCORTS · price
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Escorts Kubota reported strong FY26 results with highest-ever standalone revenue of INR 11,473 crores (+12.6% YoY) and EBITDA of INR 1,513 crores (+28.5% YoY). Q4 PAT from continuing operations grew 29.6% to INR 324.8 crores. The Board recommended total dividend of INR 51 per share (including special dividend), up 82% YoY. Domestic tractor volume reached a record 1,26,994 units (+14.9%), while exports jumped 33.8% to 6,676 units. Construction equipment volumes declined 10.6% to 5,794 units but recovered in Q4 with 9% growth. Management guided FY27 tractor industry as flattish (2-3% growth/decline) with H2 expected to see substantial de-growth due to high base, subnormal monsoon forecast (El Nino ~65-70% probability), and commodity cost pressures. They expect to launch 8-9 new products across brands in FY27.
While FY26 was a record year, FY27 faces headwinds from flattish industry outlook, commodity inflation (5-6% cost increase), and potential monsoon weakness. Management remains confident on gaining market share through new product launches despite challenging industry conditions.