Escorts Kubota Q1 results: Net profit surges nearly 5 times on exceptional gain; stock surges 6%

Escorts Kubota, the country's leading tractor maker, on Monday, August 4, reported a consolidated net profit of ₹1,397 crore in the first quarter of current financial year (Q1FY26), marking a massive jump of nearly five times from ₹302 crore in the same period last year.

The sharp up move in profit came on the back of an exceptional gain of ₹76 crore from sale of certain land and building to Sona BLW Precision Forgings.

The Faridabad-based company's revenue from operations, however, declined 3% in June quarter to ₹2,500 crore from ₹2,574 crore in the year-ago period.

The company reported flat operational performance as its operating profit also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 2% to ₹322 crore from ₹316 crore in the year-ago period.

Escorts Kubota's EBITDA margin improved by 60 basis points annually to 12.86%.

Meanwhile, the company appointed Akira Kato as an additional director, in capacity of whole-time director & key managerial personnel, designated as deputy managing director of the company.

Kato earlier held the position of chief officer – corporate planning division as a senior managerial personnel of the company.

Kato, aged about 51 years, has a qualification of bachelor’s in economics from University of Osaka, Japan. He entered Kubota Corporation, Japan in 1996 and has been working for Kubota for almost 29 years in various Senior managerial positions.

Kato’s core competencies include being super generalist with experience in Mktg. & Sales, Finance & Accounting, HR & Business planning, working with Joint Ventures and experience of decades of continuous business growth in Tractor Sales in Thailand and Agricultural Machinery in India.

Following the earnings announcement Escorts Kubota shares surged as much as 6.27% to hit an intraday high of ₹3,496.70 on the BSE, outperforming the BSE 200 index which was up 0.76%.

As of 2:31 pm, Escorts Kubota shares traded 3% higher at ₹3,456.