Escorts Kubota Shares Rise as September Tractor Sales Hit Monthly High Driven by Domestic Demand

Main Pointers
1. Escorts Kubota reported record September tractor sales of 18,267 units, up 47.6% year over year, led by robust domestic demand.
2. Domestic sales rose to 17,803 tractors (up 48.5% YoY) while exports climbed 17.5% to 464 units, aided by GST cuts and the festive season.
3. Construction equipment sales fell 19% in September (413 machines vs 510 last year), even as the company signals a broader industry rebound amid infrastructure push and improving rural conditions.

Escorts Kubota Ltd. shares edged higher on October 1 after the company disclosed its strongest September for tractors in 2025, underscoring a strengthening domestic market. The company sold a total of 18,267 tractors in September, a 47.6% jump from 12,380 units in the same month a year earlier.

In the domestic market, Escorts Kubota sold 17,803 tractors in September, up 48.5% from 11,985 units in September 2024. Export sales, while a smaller slice of overall demand, rose 17.5% to 464 units from 395 in September 2024, indicating improving overseas demand alongside domestic strength.

The company attributed the surge to favorable rural conditions, including monsoon rains, better water reservoir levels, and the ongoing festive season. It also noted that a GST rate cut on tractors and farm machinery has supported sentiment among buyers and dealers.

Separate from the tractor business, Escorts Kubota’s construction equipment (CE) segment faced pressure, with September sales down 19% to 413 machines from 510 in the year-ago month. The CE cycle remains sensitive to monsoon disruptions, project delays, and higher costs, though the company signaled a cautious outlook as the festival period supports early demand for the broader infrastructure push.

From a broader outlook, Escorts Kubota said the industry remains positive as the government’s infrastructure initiatives support a rebound in the latter half of the fiscal year. The company highlighted constructive signs amid the festive season, while maintaining a watchful stance on CE segment headwinds.

For the June quarter, Escorts Kubota posted a net profit of ₹1,397 crore, up sharply from ₹302 crore in the same quarter a year ago. Revenue for the quarter stood at ₹2,500 crore, down 3% year over year from ₹2,574 crore. The stock traded around ₹3,515 per share at about 11:20 a.m., up roughly 2% on the day. Over the past month, the stock has fallen about 3.5%, while it has gained about 9.3% in the last six months.