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Revenue
₹2,948 Cr
verified against source
Revenue YoY
8.1%
reported change
EBITDA
₹332.8 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Escorts Kubota reported a steady Q3 FY25 with consolidated revenue from continuing operations at INR 2,948 crores, up 8.1% YoY, and EBITDA margin of 11.3%. Agri Machinery revenue grew 9.4% to INR 2,416.6 crores, but EBIT margin contracted to 10.4% from 12.1% due to production swings, commodity inflation, and festive discounts. Construction Equipment revenue rose 4.1% with EBIT margin improving to 11.11%. Domestic tractor volumes grew 6% but market share slipped to 11.8% due to unfavorable geographic mix and channel inventory reduction to ~4 weeks. Management expects Q4 industry growth of 14-15% and FY26 tractor industry growth of 6-7%. Exports to Kubota network are recovering, with FY26 export growth guided at 20-25%. Risks include margin pressure from non-tractor agri machinery (harvester imports) and CE volume impact from BS V emission norm transition.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects robust Q4 industry growth driven by strong rabi season and government spending.
- Full-year domestic tractor industry expected to grow 6-7% in FY25, with FY26 outlook dependent on monsoons.
- Export volumes expected to grow at a high double-digit rate, driven by Kubota network in Europe.
- Margins expected to improve marginally in FY26 through cost initiatives, but no major jump without volume leverage.
Risks flagged
- Domestic market share fell to 11.8% due to unfavorable geographic mix and channel rationalization; recovery may take time.
- Harvester imports (traded items) are diluting Agri EBIT margins; localization is needed to improve profitability.
- Transition to BS V norms from Jan 2025 may cause temporary volume decline due to price increases of 5-10%.
- Land acquisition by UP government delayed beyond January; uncertainty on timeline for new plant.
Key quotes
- 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.
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