Escorts Kubota Q2 results: profit falls 21% to Rs 255 crore as commodity costs weigh on margins

Escorts Kubota Q2 results for the quarter ended 30 September 2026 show higher sales but lower profit. Standalone net profit fell 20.6% to Rs 255.0 crore from Rs 321.2 crore a year earlier, while revenue from operations rose 16.3% to Rs 3,231.4 crore. The company announced the numbers on 2 November 2026.

Escorts Kubota Q2 results: key numbers

Measure (standalone, Rs crore)	Q2 FY27	Q2 FY26	Change
Revenue from operations	3,231.4	2,777.4	+16.3%
EBITDA	292.4	363.2	-19.5%
Profit before tax	344.0	431.1	-20.2%
Net profit	255.0	321.2	-20.6%
Earnings per share (Rs)	23.18	29.19	-20.6%

EBITDA means earnings before interest, tax, depreciation and amortisation. It is a measure of operating profit, not the final profit. On a consolidated basis, revenue from continuing operations was Rs 3,243.4 crore, up 16.2%, and net profit from continuing operations was Rs 250.2 crore against Rs 318.1 crore.

Why Escorts Kubota’s profit fell despite higher revenue

Management said profitability was hit by elevated commodity costs and a change in product mix. In the agri machinery segment, tractor volumes were 34,017 units, up 0.4% from 33,877 units. Segment revenue rose 10.6% to Rs 2,690.1 crore, but the segment’s EBIT margin dropped to 7.8% from 12.8% a year earlier. The company says commodity cost inflation and product mix hurt margins.

Construction equipment did better. Volumes rose 53.9% to 1,764 units and segment revenue grew 58.6% to Rs 536.2 crore. The EBIT margin improved to 7.9% from 3.8%, helped by operating leverage.

Exceptional items and half-year figures

There was no exceptional item in Q2 FY27 or Q2 FY26. For the half year, standalone revenue rose 21.9% to Rs 6,410.3 crore. Reported profit was Rs 642.4 crore against Rs 1,721.4 crore a year earlier, because last year’s figure included one-time gains.

What to watch next

Management said that if commodity prices stay stable from Q4, it expects margins to improve gradually and return closer to normal levels in FY28. In our view, the next two quarters of tractor margins will show whether cost pressure is easing. See more in our results coverage.