Escorts Kubota Q2 FY27 results: net profit down 21.3% to ₹250.22 crore, revenue up 16.2%

How did Escorts Kubota perform in Q2 FY27?

Escorts Kubota reported consolidated revenue of ₹3,243 crore for Q2 FY27, up 16.2% from ₹2,792 crore in Q2 FY26 and 1.1% from ₹3,208 crore in Q1 FY27. EBITDA fell 19.9% year on year to ₹288.02 crore and declined 18.7% from ₹354.46 crore in the previous quarter. The EBITDA margin was 8.9%, down 4.0 percentage points from 12.9% a year earlier and 2.2 percentage points from 11.1% in Q1 FY27.

Profit before tax was ₹338.72 crore, down 20.7% from ₹427.25 crore in Q2 FY26 and 31.2% from ₹492.14 crore in Q1 FY27. Net profit was ₹250.22 crore, against ₹318.11 crore a year earlier and ₹385.93 crore in the previous quarter. Basic EPS was ₹22.74, compared with ₹28.92 in Q2 FY26 and ₹35.08 in Q1 FY27. On the standalone basis, revenue was ₹3,231.37 crore and net profit was ₹255.04 crore, against ₹321.18 crore in the year-ago quarter.

What changed in Escorts Kubota's costs and profit?

Total expenses rose 21.2% year on year to ₹3,028 crore, outpacing the 16.2% rise in revenue. Cost of materials was ₹2,165 crore, up 20.9% from ₹1,790 crore, employee cost was ₹237.81 crore, up 14.6% from ₹207.57 crore, and other expenses were ₹356.72 crore, up 22.8% from ₹290.53 crore. Depreciation rose 9.5% to ₹68.06 crore and finance costs rose 2.2% to ₹4.66 crore.

Other income fell 8.1% year on year to ₹123.42 crore from ₹134.25 crore. There was no exceptional item in either the quarter or the year-ago quarter. Tax expense fell 18.9% to ₹88.50 crore from ₹109.14 crore, a smaller fall than the 21.3% decline in profit after tax. In the investor presentation, management cited adverse commodity prices, higher manufacturing overheads and lower non-operating income for the pressure on EBIT.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹6,450.96 crore, up 21.9% from ₹5,291.61 crore in H1 FY26, and total income was ₹6,782.22 crore, up 21.5%. Profit before tax was ₹830.86 crore, down 9.4% from ₹917.18 crore, and net profit was ₹636.15 crore, down 62.9% from ₹1,715.21 crore. Basic EPS was ₹57.82, against ₹155.92 a year earlier.

The year-ago half included the RED divestment and an exceptional gain from the sale of land and building, which management said made reported H1 PAT not directly comparable. On a continuing-operations basis, standalone H1 FY27 PAT was ₹642.4 crore, down 7.4% from ₹693.8 crore in H1 FY26, while standalone EPS was ₹58.38 against ₹63.07. Excluding the exceptional gain, standalone H1 FY26 PAT was ₹628.7 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹16,617.91 crore against ₹15,799.36 crore at 31 March 2026, and total equity was ₹12,638.66 crore against ₹12,368.89 crore. Borrowings were ₹36.17 crore, slightly lower than ₹36.21 crore, and cash was ₹182.77 crore against ₹178.06 crore. Inventories rose to ₹2,038.49 crore from ₹1,472.26 crore, trade receivables to ₹1,472.29 crore from ₹1,202.55 crore, and trade payables to ₹2,682.84 crore from ₹2,193.32 crore.

For H1 FY27, net cash used in operating activities was ₹106.68 crore, against ₹477.33 crore generated in H1 FY26. Investing activities generated ₹503.07 crore, compared with ₹318.72 crore used a year earlier, and financing activities used ₹391.6 crore against ₹222.08 crore a year earlier. Capital expenditure was ₹126.68 crore in H1 FY27, below ₹136.77 crore in H1 FY26.

How has Escorts Kubota done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, reaching ₹3,243.41 crore in Q2 FY27, the highest of the reported period and slightly above ₹3,207.55 crore in Q1 FY27. The lowest revenue in the series was ₹2,444.88 crore in Q4 FY25, so the current level sits at the top of the range.

Profit after tax reached its peak of ₹1,397.1 crore in Q1 FY26 and its low of ₹250.22 crore in Q2 FY27, the current quarter. EBITDA margin peaked at 13.3% in Q3 FY26 and fell to 8.9% in Q2 FY27, the lowest margin in the series, after 11.1% in the previous quarter.

Which businesses drove the quarter?

Agri machinery products reported revenue of ₹2,696.41 crore in Q2 FY27, up 10.2% from ₹2,446.22 crore in Q2 FY26. Segment EBIT fell to ₹207.21 crore from ₹310.88 crore, and the EBIT margin was 7.7%.

Construction equipments reported revenue of ₹536.2 crore, up 58.6% from ₹338.1 crore a year earlier, while EBIT rose to ₹42.27 crore from ₹12.76 crore. The EBIT margin was 7.9%. Unallocated revenue was ₹10.8 crore, up 49.2% from ₹7.24 crore, with no EBIT reported in either period.

What else did the company announce?

The board approved the unaudited financial results, on both standalone and consolidated bases, for the quarter and half year ended 30 September 2026, along with the limited review report from the statutory auditors and a press release. The board meeting began at 12:00 Noon and concluded for the day at 02:10 PM on 2 November 2026. No dividend, fund raise or appointment was announced in the same-day filings.

The company had earlier filed, on 15 October 2026, that the board would meet on 2 November 2026 to consider and approve the results, subject to limited review by the statutory auditors. The trading window for the company’s designated persons and their immediate relatives remained closed until 4 November 2026, inclusive.

What did Escorts Kubota's management say?

Management said the growth in the half was led by construction equipment and a 10.0% rise in tractor volumes, with first-half standalone revenue up 21.9% year on year. It said profit conversion weakened, with standalone EBITDA down 5.9%, the margin down to 10.1%, and Q2 standalone PAT down 20.6% year on year. Management cited material costs, adverse commodity prices and higher manufacturing overheads as the stated reasons for EBIT pressure.

Management noted that H1 export tractor volumes fell 14.8% while the industry grew 16.8%, and that Q2 export volume fell 10.3% against industry growth of 15.9%. It said domestic tractor volume grew 0.9% in Q2 against an industry decline of 3.1%, and highlighted rising non-tractor and greater-than-40-HP mix. Management also said H1 reported PAT is not directly comparable because H1 FY26 included the RED divestment and an exceptional gain from the sale of land and building.

Management pointed to operating leverage in the construction equipment segment and said capacity utilisation was about 62% for construction equipment and about 95% for tractors in Q2. The presentation said Q2 EBIT fell 20.1% year on year and 30.2% sequentially despite revenue growth of 16.3% and 1.7%, with adverse commodity prices, higher manufacturing overheads and lower non-operating income cited as reasons.

How did Escorts Kubota shares react?

The stock fell 3.8% within 5 minutes of the filing, 4.0% after 15 minutes and 5.3% after 30 minutes. It closed the reaction day down 6.0% from its pre-results close of ₹2,575.0, and by the next day's close it was down 5.1% from that same close.

The industry median moved up 1.8% on the reaction day and 2.5% by the next day's close, so the stock underperformed the sector by 7.8 percentage points on the reaction day and 7.5 percentage points by the next day's close. The Nifty Midcap 150 rose 1.3% on the reaction day. Earlier results-day moves were up 1.4% on 3 August 2026, up 1.1% on 7 May 2026, up 0.1% on 10 February 2026 and down 1.0% on 4 November 2025.