Escorts Kubota

“And only next fiscal year can we see maybe some recovery start happening in the export numbers. But this year looks like more likely if we were able to get flattish number also, it will be good for export.”

“And then next year, we are likely to start the construction work there on the project.”

“So obviously that will be additional because the construction will be spread over the next 2 years.”

“But that's again still averaging about 500 numbers a month. So at least in the next 6 months, we don't see a significant change happening there because the order book is already there for the next 6 months.”

“Our domestic tractor volume stood at 32,628 tractors as compared to 32,329 tractors in Q2 FY26, registering marginal growth despite the industry decline. This resulted in a 48 basis point improvement in the market share during the quarter.”

“Our export volume stood at 1,389 tractors as compared to 1,548 tractors in the last year corresponding quarter”

“Non-tractor revenue, comprising the Agri Solutions business, engine business, and spare parts and service business in Q2 FY27, constitutes 22% of the Agri Machinery segment revenue as against 17% in the corresponding quarter and 19% in the sequential quarter.”

“Agri Machinery Products segment revenue came at INR2,690.1 crores, up by 10.6% as against INR2,432.9 crores in the previous year.”

“Our construction equipment business total volume came at 1,764 machines, up by nearly 54% as compared to 1,146 machines in the corresponding quarter last year.”

“Domestic industry volumes stood at approximately 2.66 lakh tractors as compared to 2.75 lakh tractors in Q2 FY26, a decline of around 3%-odd Y-o-Y.”

“In the near term, however, the tractor market is witnessing some moderation due to high base effect, lower subsidy support in certain markets, El Nino monsoon call disruption and the cost escalation due to commodity price neglecting the GST reduction benefit largely.”

“While the underlying fundamentals remain encouraging, we expect the pace of growth to moderate going forward, particularly considering the high base and the increased costs, leading to high-teen growth in FY27.”

“So from a guidance perspective, we are looking at a very marginal degrowth in the financial year '27 industry, single-digit marginal degrowth. That is the guidance as we go forward.”

“So we are looking at a subdued industry, probably a slight degrowth in both quarter 3 as well as quarter 4, which would, to a very large extent, reduce the growth of the entire year.”

“Given the large lag between cost escalation and this recovery through price action, margin pressure is expected to continue in H2.”

“The pricing measures taken along with the ongoing cost control initiatives should help progressively mitigate the inflationary impact and support margin improvement from Q4 onwards.”

“EBITDA at INR292.4 crores. EBITDA margin in Q2 stands at 9.0% as compared to 13.1% in the corresponding quarter and 11.2% in the sequential quarter.”

“Margin during the quarter was adversely impacted by commodity cost inflation and higher manufacturing overheads.”

“EBIT margin for the Agri Machinery segment business came at 7.8% as against 12.8% in the corresponding quarter and 10.8% in the sequential quarter, impacted due to product mix, inflated commodity costs, and higher manufacturing overheads.”

“So your sales are lower than production, and the gap is almost 20% to 25% there.”

“We did not do the entire stock correction in October, and we will further do it in November.”

“During the quarter, we also strengthened our product portfolio by showcasing the new product BLX75K Backhoe Loader powered by a Kubota engine”

“Yes, there are still gaps in the 4-wheel drive segment, especially in Powertrac and also the Kubota brand, which to a very large extent will get covered over the next 6 to 8 months with some new product launches in the 4-wheel segment lined up.”

“So in January, we would be introducing that range, which would primarily cater to the product gaps in the 4-wheel drive segment in the Power brand.”

“So I think localization, both on tractors and farm machinery other than tractors, and those are projects very much on track and to be launched as per the schedule in coming few quarters.”

“along with 25-ton F-25 fighter and 16-ton Hydra 16 Plus pick-and-carry cranes.”

“Please note that in H1 of the previous year included an exceptional gain from the sale of land and building of INR76 crores. Excluding this, net profit grew by 2.2% Y-o-Y.”

“So other than the higher production number, which is impacting this cost, there is no other one-off that is there.”

“EPS from continuing operations at INR58.38, compared to INR63.07 Y-o-Y. Please note that H1 FY26 previous year includes RED business divestment impact.”

“But primarily, this is on account of the deficit rainfall. It's been a 13% deficit against the normal rainfall.”

“So the reservoir levels currently are at 70%.”

“So there could be an impact in quarter 1 of the next fiscal year.”

“So I think there was no significant change on the cost side, or on the price side maybe under, I would say, 4%.”

“being concentrated in the higher HP segment, where our current presence is relatively limited, coupled with key export markets where we have a strong presence undergoing market correction.”

“Operating revenue from continuing operation at INR3,231.4 crores, up by 16.3% Y-o-Y.”

“Net profit came at INR255 crores as compared to INR321.2 crores Y-o-Y.”

“So the kind of margin which we give to the distributor independently is a similar margin which we give to Kubota also; additional preference given to the group in the supplying.”

“PBT from continuing operations came at INR344 crores as compared to INR431.1 crores year-on-year.”

“EPS stands at INR23.18 as compared to INR29.19 Y-o-Y.”