Escorts Kubota Limited has informed the Exchange regarding Monthly Business Updates for the month of April 2025
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Escorts Kubota sold 8,729 tractors in April 2025, down 1.2% from 8,839 units in April 2024. Domestic tractor sales fell 4.1% to 8,148 units, which the company attributes to festive preponement to March 2025, though it expects demand to improve on the back of a good rabi harvest, higher crop prices, and healthy reservoir levels. Export tractor sales surged 67.4% to 581 units, showing strong international momentum. The Construction Equipment division sold 400 machines, down 14% from 465 a year ago, as the industry faces demand headwinds from cost escalation linked to new emission norms, though the company expects a recovery in the second half of the fiscal year.
Mixed signals for shareholders — domestic tractor and construction equipment volumes declined year-on-year, but the weakness is explained by one-off factors (festive shift, emission norm transition) rather than structural demand issues. Strong export growth and a positive demand outlook from the company provide some comfort, but near-term revenue may remain soft until the second half of FY26.