Escorts Kubota Q2 Net Profit Drops 21% YoY

Board Meeting Details

The Board of Directors meeting was held on November 02, 2026, commencing at 12:00 Noon and concluding at 02:10 PM.

Key Financial Figures - Standalone (Continuing Operations)

Quarterly Performance (Q2 FY27 vs Q2 FY26 vs Q1 FY27)

Revenue from operations: ₹3,231.37 crore (↑16.3% YoY, ↑1.7% QoQ) vs ₹2,777.42 crore (Q2 FY26) vs ₹3,178.90 crore (Q1 FY27)
Total income: ₹3,354.26 crore vs ₹2,911.03 crore (Q2 FY26) vs ₹3,386.34 crore (Q1 FY27)
Profit before tax: ₹344.03 crore (↓20.2% YoY, ↓30.3% QoQ) vs ₹431.13 crore (Q2 FY26) vs ₹493.82 crore (Q1 FY27)
Net profit: ₹255.04 crore (↓20.6% YoY, ↓34.2% QoQ) vs ₹321.18 crore (Q2 FY26) vs ₹387.34 crore (Q1 FY27)
EPS (Basic): ₹23.18 vs ₹29.19 (Q2 FY26) vs ₹35.20 (Q1 FY27)

Half-Yearly Performance (H1 FY27 vs H1 FY26)

Revenue from operations: ₹6,410.27 crore (↑21.9% YoY) vs ₹5,260.78 crore (H1 FY26)
Total income: ₹6,740.60 crore vs ₹5,549.99 crore (H1 FY26)
Profit before exceptional items and tax: ₹837.85 crore (↓1.3% YoY) vs ₹848.99 crore (H1 FY26)
Net profit before exceptional items: ₹642.38 crore (↑2.2% YoY) vs ₹628.70 crore (adjusted H1 FY26)
EPS (Basic): ₹58.38 vs ₹156.48 (H1 FY26 including discontinued operations)

Key Financial Figures - Consolidated (Continuing Operations)

Quarterly Performance (Q2 FY27)

Revenue from operations: ₹3,243.41 crore (↑16.2% YoY, ↑1.1% QoQ)
Net profit: ₹250.22 crore (↓21.4% YoY, ↓35.1% QoQ)
EPS (Basic): ₹22.74

Half-Yearly Performance (H1 FY27)

Revenue from operations: ₹6,450.96 crore (↑21.9% YoY)
Net profit before exceptional items: ₹636.15 crore (↑2.2% YoY)
EPS (Basic): ₹57.82

Segment Performance - Standalone

Agri Machinery Products (Q2 FY27)

Revenue: ₹2,690.08 crore (↑10.6% YoY, ↓2.8% QoQ)
Tractor volumes: 34,017 units (↑0.4% YoY, ↓7.7% QoQ)
EBIT margin: 7.8% (vs 12.8% Q2 FY26, 10.8% Q1 FY27)

Construction Equipment (Q2 FY27)

Revenue: ₹536.20 crore (↑58.6% YoY, ↑27.8% QoQ)
Volumes: 1,764 units (↑53.9% YoY, ↑31.3% QoQ)
EBIT margin: 7.9% (↑411 bps YoY, ↑250 bps QoQ)

Exceptional Items

H1 FY26 included gain of ₹75.99 crore on sale of land and buildings to Sona BLW Precision Forgings Limited (Sona Comstar)
FY26 included incremental expense of ₹52.46 crore for new labor code provisions

Discontinued Operations (RED Business)

The Railway Equipment Division (RED Business) was transferred to Sona Comstar during Q1 FY25 (completed June 30, 2025) for lump sum consideration of ₹1,600 Crores. The business was reported as discontinued operations with net profit of ₹1,027.63 crore in H1 FY26 including ₹1,004.37 crore profit from sale.

Dividend Distribution

The Board recommended final dividend of ₹33 per equity share (face value ₹10) for FY25-26 at meeting on May 7, 2026, which was approved by shareholders at AGM on July 15, 2026, and distributed during Q2 FY27.

Capital Structure

Paid-up equity share capital: ₹111.88 crore (unchanged)
Other equity (Standalone): ₹12,563.85 crore as of September 30, 2026 (vs ₹12,287.88 crore as of March 31, 2026)

Assets and Liabilities (Standalone)

Total assets: ₹16,588.64 crore as of September 30, 2026 (vs ₹15,766.64 crore as of March 31, 2026)
Total equity: ₹12,675.73 crore as of September 30, 2026 (vs ₹12,399.76 crore as of March 31, 2026)
Current liabilities: ₹3,569.54 crore as of September 30, 2026 (vs ₹3,033.19 crore as of March 31, 2026)

Cash Flow (Standalone H1 FY27)

Net cash from operating activities: ₹4.60 crore (vs ₹500.31 crore H1 FY26)
Net cash from investing activities: ₹395.19 crore (vs ₹(347.45) crore H1 FY26)
Net cash used in financing activities: ₹(391.10) crore (vs ₹(222.02) crore H1 FY26)
Cash and cash equivalents: ₹175.04 crore as of September 30, 2026 (vs ₹166.10 crore beginning of year)

Auditor Review

Walker Chandiok & Co LLP conducted limited review of both standalone and consolidated results and confirmed compliance with Ind AS 34 and SEBI Listing Regulations. Their review reports dated November 02, 2026, stated no material misstatements were identified.

Management Commentary

Profitability was impacted by elevated commodity costs and changes in product mix. Management expects margins to improve gradually from Q4 FY27 and return closer to normal levels in FY28 assuming stable commodity environment. The company continues to focus on operational efficiencies and cost optimization initiatives.