Escorts Kubota · tone and specificity signals across the available quarters.
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We anticipate that the domestic tractor industry may experience mid-single-digit growth. This growth will be driven by various sectors, such as increased monsoon coverage, government assistance, improved crop prices, enhanced liquidity, and expanded access to the credit.
The idea of carving out these businesses was to align with the Kubota group. So they also have the similar verticals in terms of revenue.
On the margin front, I think we expect the margin should remain within this range, with the indication we have given.
The impact of this launch will be visible in the next quarter. Going forward, we will be launching the Wetland series in the coming quarters under Powertrac brand. These product launches across all brands are expected to drive market share growth with the full year impact becoming clearly visible in the next financial year.
Our midterm business plan target is to take it to 15% level.
The industry swing has actually impacted severely the market share of EKL. The contribution of the EKL stronger markets to a very large extent has come down by about 5%, 6% which has actually impacted the market share.
These two JVs at a combined level were more or less break-even operations, and they had about 2,000 crore of sales as a top line with very nominal operating margin.
We expect within the next six months, we should be able to close on the land part. And if we get the land allotted in the next six months, then we expect within the next two and a half years, we should be able to go live on the commercial production on the tractor side.
Our current inventory levels are between 35 days-37 days of stock on an annualized basis.
We see an upswing in the industry, and we're looking at this year to end at double-digit growth, a marginal growth in the double digits.
The major growth in exports will come when the greenfield is up and running. That will happen somewhere in 2028, 2029.
In India, we do not see it to be a really good market, especially looking at the affordability aspects of the farmers.
Our retail market share is better than what is shown in the wholesale market share.
The impact of various product integrations and the captive finance, to a certain extent, you will see in the next fiscal year, that too in the second half of the next fiscal year.
We are not very bullish of a huge jump in profitability, but over a year of period, I think we will be able to recover the cost, and we're slightly positive to flattish kind of profitability growth.
The Promaxx series continued to gain traction, with the order inflow now exceeding current supply level, and we are scaling up our production to meet this demand.
The full market impact of this refreshed product portfolio is expected in the end of FY 2027, and we are confident that these initiatives will further reinforce our competitive position.
So today, a lot of exports are happening from Kubota, Japan to U.S., and around Japan, I think there's a tariff of 15%. And against that, if India comes at 18%, so even with the blended rate of... The metal tariff of 50%, the blended rate will be somewhere around 22%-23%, which in Japan today is about 18%. So it's a 4%-5% delta differential, which will come from India, but I think it will make a lot more sense to produce in India at a lower cost and still look at exporting to U.S. market.
We are looking at a mid- to high single-digit growth this year. This is for sure that the industry is looking at the highest-ever volume in the Indian tractor market this year.
The major change will happen once we have this localization of Kubota products, which is still two years away. Till then, I think we'll remain in this range only, maybe 11.5%-13% range.
U.S. is the biggest market for Kubota. Obviously, we expect that as and when the products start getting exported to the market, the numbers will ramp up.
We expect the industry to taper down over the next few months. The overall guidance for fiscal year 2027 is kind of a flattish industry, 2%-3% up, 2%-3% down.
Our effort will be to maintain the margin on a full year basis, but obviously it's too early to talk about that unless we know how the geopolitical situation really emerges.
The basic purpose of captive finance is to help the main business in growing market share and increasing volume. That is the primary objective.