Escorts Kubota hosted a conference call on May 7, 2026. The company was represented by Mr. Bharat Madan, Chief Financial Officer; Mr. Neeraj Mehra, Chief Officer of the Tractor Business Division; and Mr. Sanjeev Bajaj, Chief Officer of the Construction Equipment Business.

Key takeaways of the call

During the quarter, domestic environment remains optimistic, while global environment was volatile. West Asia conflict has led to increase in raw material prices.

Domestic tractor demand remains strong, supported by healthy reservoir levels, improved crop realizations, higher MSPs, and continued government focus on rural and infrastructure spending. However, rising input costs and geopolitical uncertainties could impact affordability.

The company implemented selective price hikes in April 2026 to partly offset rising commodity costs.

The company expects to outperform the domestic tractor industry, which is projected to grow in low single digits in FY27.

Construction equipment segment outlook remains strong, supported by higher government investments in infrastructure projects.

In Q4 FY26, tractor volume stood at 32,257 units, up by 21.1% YoY. Construction Volume increased 9.2% YoY to 1,877 units.

In FY26, tractor volume stood at 1,33,670 units, up by 15.7% YoY. Construction Volume decreased 10.6% YoY to 5,794 units.

During the year ended March 2026, the Railway business divestment was successfully concluded in accordance with the conditions outlined in the Business Transfer Agreement (BTA) and the income of Rs 1,601.7 Crore (net of transaction cost) from the divestment has been accounted for in the financial results under discontinued operations.

In April 2026, the Company launched three new tractor models under the Digitrac Series in 45-55 HP Range (under the ‘Powertrac’ Brand) in the Agri-Machinery Business Segment. Going forward, management expects new product launches to improve market share in Agri products segment.

In Q4 FY26, the EBITDA margin for the Agricultural Machinery Products segment fell, whereas the margin for the Construction Equipment segment improved.

In Q4 FY26, the company’s domestic tractor volume increased 22.8% YoY compared to industry growth of 34.9% YoY.

In FY26, the company’s domestic tractor volume increased 14.9% YoY compared to industry growth of 23.5% YoY.

In Q4 FY26, the company’s export tractor volume fell 1% compared to industry growth of 2.1%. In FY26, export tractor volume grew 33.8% YoY. Export through Kubota channel contributed 67% to total Export volume in Q4 FY26.

In Q4 FY26, Less than 40 HP contributed 32% to Agri Machinery sales and Greater than 40 HP contributed 68%.

In Q4 FY26, PNC tractor Volume increased 21.6% YoY. BHL tractor volume decreased 54.6 YoY, Mini Excavator volume increased 8.4% YoY, and Compactor Volume decreased 92.4% YoY.

In FY26, PNC tractor Volume fell 7.8% YoY. BHL tractor volume decreased 48.1% YoY, Mini Excavator volume increased 24.6% YoY, and Compactor Volume decreased 71.9% YoY.

In FY26, Agri Machinery Products contributed 85% to revenue, and Construction Equipments 15%.

In Q4 FY26, Capacity utilization of Agri Machinery Products segment was around 85% and capacity utilization of Construction Equipment segment was around 70%.

In FY26, Capacity utilization of Agri Machinery Products segment was around 77% and capacity utilization of Construction Equipment segment was around 47%.

The board recommended a final dividend of Rs 33 per equity share of Rs 10 each, for the financial year 2025-26.

Management guided capex of about Rs 350-400 crore for FY27.