Type of Event: Q1 FY27 Earnings Conference Call to discuss the earning performance for the quarter ended June 30, 2026.

Date and Time: The call was held on August 03, 2026. A specific time and time zone were not disclosed in the provided transcript.

Purpose: The stated purpose was to discuss the company's financial and operational performance for Q1 FY27.

Management Participants: The following management representatives from Escorts Kubota Limited participated:

  • Mr. Bharat Madan – Whole-Time Director and Chief Financial Officer
  • Mr. Neeraj Mehra – Chief Officer of Tractor Business, Farmtrac and Powertrac Brands
  • Mr. Sanjeev Bajaj – Chief Officer-Construction Equipment Business
  • Mr. Rajan Chugh – Chief Officer of Tractor Kubota Brand and Agri Solutions Business
  • Mr. Sanjeev Garg – Head of Finance and CPMO
  • Mr. Prateek Singhal – Investor Relations and ESG

The call was moderated by Mr. Aniket Mhatre from Motilal Oswal Financial Services Limited.

Availability of Materials: The full transcript of the conference call was made available on the company's website at: https://www.escortskubota.com/investors/financials. The document is a regulatory filing of this transcript.

Financial Period Discussed: The call specifically discussed the company's performance for Q1 FY27 (quarter ended June 30, 2026).

Financial Highlights Disclosed:

Standalone Performance (Continuing Operations):

  • Operating Revenue: INR 3,178.9 crores, up 28% YoY
  • EBITDA: INR 355.4 crores, up 9.4% YoY
  • EBITDA Margin: 11.2% (vs. 13.1% in Q1 FY26)
  • PBT (before exceptional item): INR 493.8 crores, up 18.2% YoY (highest ever Q1)
  • Net Profit: INR 387.3 crores, up 4% YoY
  • EPS: INR 35.2 (vs. INR 33.87 YoY)

Note: Q1 FY26 included an exceptional gain of INR 76 crores from sale of land. Excluding this, net profit grew 26% YoY. Q1 FY26 reported PAT also included the impact of the RED business divestment, making YoY comparisons not directly comparable.

Consolidated Performance (Continuing Operations):

  • Revenue: INR 3,207.6 crores, up 28.3% YoY
  • EBITDA: INR 354.5 crores, up 10.3% YoY
  • Net Profit: INR 385.9 crores, up 4.5% YoY

Segmental Performance:

Agri Machinery Business (Tractors & Others):

  • Domestic Industry Volume: ~3.39 lakh tractors (record Q1, up 18.6% YoY)
  • Domestic Tractor Sales: 35,457 tractors (record Q1, up 22.9% YoY)
  • Market Share: Gained 36 basis points
  • Segment Revenue: INR 2,766.5 crores, up 26.8% YoY
  • Segment EBIT Margin: 10.8% (vs. 12.6% in Q1 FY26)
  • Non-Tractor Revenue (Agri Solutions, engines, parts): 19% of Agri Machinery revenue
  • Exports: 1,405 tractors (vs. 1,733 YoY); 61% of export volume was sales to Kubota global network.

Construction Equipment Business:

  • Industry Growth: ~23% YoY
  • Company Volume: 1,344 machines, up 27.4% YoY
  • Segment Revenue: INR 419.6 crores, up 39.2% YoY

Forward-Looking Statements & Strategic Themes:

  • Industry Outlook (Tractors): Underlying demand remains supportive. Management is cautiously optimistic and now anticipates mid-single-digit industry growth for FY27, an upgrade from prior guidance of +/- 2-3%.
  • Commodity Costs: Cited as a significant headwind, with a ~5% cost impact in Q1. An additional 1.5-2% pressure is expected in Q2, anticipated to be a temporary phenomenon with potential reversal by Q4.
  • Price Actions: A 1-1.5% price increase was taken in the tractor business in April. Further price hikes are being contemplated for Q2 to offset cost inflation but may not cover the entire increase.
  • Product Launches: Multiple product launches are planned over the coming months across all brands (Farmtrac, Powertrac, Kubota) to address portfolio gaps, particularly in the 4-wheel drive segment for Powertrac.
  • Capex Guidance: INR 850-900 crores for FY27, which includes INR 450-500 crores for land acquisition and development of a new greenfield project and INR 350-400 crores in normal capex.
  • Exports Outlook: FY27 export volumes are expected to be flattish YoY, with good growth anticipated in FY28.
  • Captive Finance: Aiming to cover 40-50% of dealerships by FY27 end and achieve pan-India coverage by FY28.

Additional Notes Section

The provided document is the regulatory filing containing the full transcript of the earnings conference call. The transcript includes detailed financial figures, management commentary, and a comprehensive Q&A session with analysts.

The company included standard forward-looking statement disclaimers, noting that some statements are subject to risks outlined in annual reports and investor releases.

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