Q2 2026 Escorts Kubota Ltd Earnings Call Transcript
Key Points
- Operating revenue increased by 22.6% year-on-year, reaching INR2,774 crore.
- EBITDA grew by 56% year-on-year, with a margin increase of 280 basis points to 13.1%.
- Tractor volume increased by 30.3%, resulting in a 20 basis point market share gain.
- Export volume for tractors rose by 26.2%, with significant contributions from the Kubota global network.
- The company expects the tractor industry to sustain a low double-digit growth rate for the full fiscal year.
- Construction equipment industry volume declined by approximately 4%, driven by a 13% drop in the crane segment.
- EBIT margin for the construction equipment segment decreased to 3.8% from 9.3% year-on-year.
- The construction equipment industry faced challenges due to an extended monsoon season and slow mobilization of infrastructure projects.
- Treasury income decreased due to mark-to-market adjustments and hardening yields compared to the previous quarter.
- Non-tractor revenue as a percentage of Agri Machinery segment revenue decreased slightly from 18% to 17%.
Ladies and gentlemen, good day, and welcome to the Q2 FY26 earnings conference call of Escorts Kubota Limited hosted by Kotak Securities Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Rishi Vora from Kotak Securities Limited. Thank you, and over to you, Mr. Rishi.
Thank you. Good evening. On behalf of Kotak Securities Limited, I welcome you all for Escorts Kubota Q2 and H1 FY26 earnings conference call. I also take this opportunity to welcome the management team from Escorts Kubota Limited. Today, we have with us Mr. Bharat Madan, Whole-time Director and Chief Financial Officer; Mr. Neeraj Mehra, Chief Officer, Tractor Business Division; Mr. Sanjeev Bajaj, Chief Officer, Construction Equipment Business Division; Mr. Sanjeev Garg, Head, Finance and CPMO; and Mr. Prateek Singhal, Investor Relations and ESG.
We will start the call with a brief opening remarks from the management, followed by Q&A. Before we start, I
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