Escorts Kubota Ltd. share price target

Escorts Kubota’s (EKL) 1QFY27 PAT at INR3.9b beat our estimate of INR3.3b due to higher than expected other income, while EBITDA margin at 11.2% was in line with our estimate.

EKL is well placed on the back of new tractor launches across its brands and a paddyspecial tractor for the southern markets. The CE segment has turned around in Q4 and should benefit from the government's infrastructure push. With a healthy balance sheet and the planned new manufacturing facility, the long-term growth runway remains intact. Margins could be tested by commodity inflation and rising manpower costs, partly cushioned by price hikes. With FY26 setting a record base, near-term volume growth could...

We continue to maintain our HOLD rating on the stock.

Escorts’ 4QFY26 PAT at INR3.2b came in below our estimate of INR3.6b due to lower other income, while EBITDA was broadly in line with our estimate.

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Strong tractor momentum continued with volumes up ~14% YoY, driving Agri Machinery EBIT margin higher to 13.5% (+310 bps YoY)

We continue to maintain our HOLD rating on the stock.

We continue to maintain our HOLD rating on the stock

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Escorts’ 2QFY26 PAT at INR3.2b was below our estimate of INR3.7b due to a lower-than-expected margin improvement and lower other income. Both tractor and construction equipment margins were below our estimates.

We continue to maintain our HOLD rating on the stock.

Slightly above our estimated Rs3.12bn, Escorts’ Q1 EBITDA grew 3% y/y to Rs3.35bn due to better-than-expected agri-machinery margins (lowerthan-expected input/employee cost).

Q1 tractor volumes grew marginally by 0.7% YoY (~15% QoQ), but domestic volumes were down ~2%. Margins soften sharply by 12% YoY

Escorts Kubota’s (ESCORTS) 1QFY26 PAT of INR3.1b was in line with our estimate. Tractor segment margins exceeded our estimates, whereas construction equipment (CE) margins came in below estimates.

With a pickup in rural demand and improved crop output, we anticipate early signs of recovery in tractor sales. Additionally, upcoming product launches in both the construction *over or under performance to benchmark index equipment and tractor segments are expected to support overall volume growth. Margins are likely to remain resilient at current levels, driven by easing raw material costs and ongoing cost optimization efforts. However, due to a slower-than-expected ramp-up in exports, the strategic benefits from Kubota's partnership in the agribusiness segment may take longer to materialize, reflecting the challenges in international markets. The near-term...

Escorts Kubota’s (ESCORTS) Q4 results were ahead of our estimates, with better-than-expected margins in the tractor segment. Both MM and tractors reported a healthy margin revival QoQ in a seasonally weak quarter.

Escorts’ Q3 PBT (incl. discontinued operations) grew 7% y/y to Rs4.2bn, below ARe of Rs4.4bn mainly due to less-than-expected agri machinery margins.

Escorts (EKL) logged a strong Q3 with 8.5% growth in revenue from continued operations and 110bps QoQ EBITDA margin expansion to 11.4%. EKL has guided to robust domestic tractor industry outlook for 4Q (~15% YoY growth).

We maintain our HOLD rating on the stock.