Escorts Kubota reported a 21.4 per cent fall in second-quarter profit on Monday, as rising commodity costs and an unfavourable product mix squeezed margins in its tractor business, outweighing strong construction equipment sales.
The tractor and construction equipment maker’s consolidated net profit fell to ₹250 crore ($26.36 million) in the quarter ended September 30 from ₹318 crore a year earlier.
Revenue from operations rose 16.2 per cent to ₹3,243 crore, while total expenses rose 21.2 per cent year-on-year.
Agricultural machinery revenue rose 10.2 per cent to ₹2,696 crore, but the segment’s operating margin shrank to 7.8 per cent from 12.8 per cent a year earlier, hurt by commodity cost inflation and changes in product mix.
Tractor sales edged up 0.4 per cent to 34,017 units during the quarter, while September sales fell 16.7 per cent as a patchy monsoon, lower kharif (summer-sown crop) sowing and a delayed festive season hurt demand.
The company expects margins to improve gradually from the January-March quarter, assuming stable commodity prices, before returning closer to normal levels in fiscal 2028.
Escorts Kubota raised tractor prices in August and will raise them again in November, citing input costs, inflation and geopolitical uncertainties.
Escorts Kubota shares fell as much as 6.4 per cent to ₹2,411.80, hitting their lowest since late July 2023.
Published on November 2, 2026
