Q3 2026 Escorts Kubota Ltd Earnings Call Transcript
Key Points
- Escorts Kubota Ltd (BOM:500495) reported an 11.1% year-over-year increase in operating revenue, reaching INR 3,261.4 crores.
- The company achieved its highest ever quarterly EBITDA at INR 438.7 crores, marking a 30.9% year-over-year growth.
- Net profit from continuing operations rose by 24.7% year-over-year to INR 362.4 crores, with an adjusted net profit increase of 38.3% year-over-year.
- The tractor business saw a 13.5% increase in total tractor volume, with domestic sales up by 12% year-over-year.
- The export volume for tractors increased by approximately 63% year-over-year, with sales to the Kubota Global Network accounting for 68% of total exports.
- The Construction Equipment business experienced a decline in industry volume by approximately 60% year-over-year due to a high base effect and extended monsoon.
- EBITDA margin for the Construction Equipment segment decreased to 6.6% from 11% in the corresponding quarter of the previous year.
- The domestic tractor market performance was moderated by regional disparities, with the north and central markets underperforming compared to other regions.
- There was a one-time impact of INR 52.5 crores due to the new labor code, affecting the net profit.
- Commodity price pressures, particularly in metals like copper and aluminum, are expected to impact margins in the upcoming quarter.
Ladies and gentlemen, good day, and welcome to Q3 FY26 earnings conference call of Escorts Kubota Limited hosted by Anand Rathi Shares and Stock Brokers Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mumuksh Mandlesha from Anand Rathi Shares and Stock Brokers Limited. Thank you, and over to you, sir.
Good evening. On behalf of Anand Rathi Shares and Stock Brokers, I welcome you all for the Escorts Kubota Q3 and nine-month FY26 earnings conference call.
I 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; and Mr. Prateek Singhal, Investor Relations and ESG.
Before we start, I would like to add some of the statements made by the company in today
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