Escorts Kubota Limited has informed the Exchange about Credit Rating- Revision
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CRISIL Ratings has revised the outlook on Escorts Kubota's long-term bank facilities to 'Positive' from 'Stable', while reaffirming the rating at 'Crisil AA+'. The short-term rating of 'Crisil A1+' has also been reaffirmed. Total bank loan facilities under review stand at Rs 1,000 crore. The outlook upgrade is driven by stronger integration with parent Kubota Corporation (which holds a 54.07% stake), with about 50% of EKL's exports now routed through Kubota's global distribution network. EKL's financial health remains robust, with a debt-free status, cash surplus of around Rs 9,000 crore as of September 2025, and an expected networth above Rs 12,000 crore by fiscal year-end. Revenue grew 9.91% to Rs 8,572 crore in the first nine months of FY26, with operating margin improving to 13.0% from 11.3%.
The outlook revision signals CRISIL's growing confidence in EKL's credit profile, backed by strong parentage from Kubota and improving business fundamentals. This is a positive development for shareholders and could lead to a potential rating upgrade in the future, while also supporting easier access to credit at favourable terms.