ESCORTS
Large CapEscorts Kubota Limited
Industrials
Escorts Kubota Limited is an Indian manufacturer of agricultural machinery (tractors, agri solutions) and construction equipment (PNC cranes, backhoe loaders, mini excavators, compactors). The company's financials are reported as per IndAS, with operations spanning domestic and export markets.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 55/100Rev +21% YoY · PAT +1% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,968 Cr | +21.4% | -9.5% |
| EBITDA | ₹381 Cr | +32.8% | -12.4% |
| Operating margin | 13.0% | +100 bps | +0 bps |
| PAT | ₹321 Cr | +0.9% | -10.3% |
| PAT margin | 10.8% | -219 bps | -9 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
EKL reported Q4 FY26 Standalone Revenue from Operations up 21.4% YoY to INR 2,950.7 Cr, but down 9.5% QoQ. PAT from continuing operations rose 29.6% YoY to INR 324.8 Cr. FY26 Revenue increased 12.6% YoY to INR 11,472.8 Cr, with PAT up 24.4% YoY to INR 1,380.9 Cr.
EKL's Q4 FY26 and FY26 results show overall revenue growth and margin expansion, supported by export tractor volumes and certain CE segments. However, domestic tractor volumes lagged industry growth, and specific CE segments (BHL, Compactor) experienced severe declines. Adverse product mix in Agri machinery also pressured EBIT. This mixed performance, with underperformance in core domestic segments, indicates stress on the growth thesis.
Revenue by Segment (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Export Tractor Volume Growth
EKL Export Tractor Volume grew 33.8% YoY in FY26, significantly outperforming the industry's 6.9% YoY growth.
PNC Volume Growth
PNC Volume grew 21.6% YoY in Q4 FY26, while the industry saw a decline of 0.1%.
Overall Served Construction Equipment Volume Growth
Served Construction Equipment Volume grew 9.2% YoY in Q4 FY26, outpacing the industry's 3.9% YoY growth.
Softening Commodity Prices
Softening in commodity prices contributed to EBIT improvement in FY26.
Operating Leverage
Operating leverage in the Agri Machinery segment contributed to EBIT growth in FY26.
Domestic Tractor Underperformance
EKL's Domestic Tractor Volume growth of 22.8% YoY in Q4 FY26 lagged the industry growth of 34.9% YoY.
Adverse Product Mix in Agri Machinery
Adverse product mix in the Agri machinery segment negatively impacted EBIT in Q4 FY26 (YoY and QoQ).
Significant Decline in Specific CE Segments
BHL Volume declined 54.6% YoY and Compactor Volume declined 92.4% YoY in Q4 FY26, significantly underperforming the industry.
Lower Non-Operating Income
Lower non-operating income impacted EBIT in Q4 FY26 (YoY and QoQ).
Market Share Erosion in Domestic Tractors
EKL's domestic tractor volume growth lagging the industry indicates potential market share erosion in a key segment.
Volatility in Construction Equipment Sub-segments
Severe declines in BHL and Compactor volumes highlight high volatility and competitive pressures in specific CE product categories.
Product Mix Impact on Margins
Adverse product mix in Agri machinery negatively impacted EBIT, suggesting margin sensitivity to changes in product portfolio.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for understanding annual growth and seasonal trends in Agri Machinery. QoQ is important for assessing sequential momentum, especially in Construction Equipment and overall operational efficiency.
Domestic Tractor Volume (Q4 FY26)
EKL Domestic Tractor Volume grew 22.8% YoY, but the industry grew 34.9% YoY, indicating EKL underperformance.
Export Tractor Volume (Q4 FY26)
EKL Export Tractor Volume declined 1.0% YoY, while the industry grew 2.1% YoY.
Total Tractor Volume (Q4 FY26)
Total Tractor Volume was 32,257 units, up 21.1% YoY but down 12.7% QoQ.
Served Construction Equipment Volume (Q4 FY26)
Served Construction Equipment Volume was 1,877 units, up 9.2% YoY and 9.4% QoQ, outpacing industry growth of 3.9% YoY.
Final Dividend Recommendation
The Board recommended a Final Dividend of INR 33.0 per share, bringing the total FY26 dividend to INR 51.0 per share (including a special dividend already paid).
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Domestic Tractor Volume Growth vs. Industry | EKL 22.8% YoY (Q4 FY26) vs. Industry 34.9% YoY | Monitor EKL's domestic tractor volume growth relative to the industry to assess market share trends and competitive positioning. |
| Construction Equipment Volume Growth (BHL, Compactor) | BHL -54.6% YoY, Compactor -92.4% YoY (Q4 FY26) | Track recovery and competitive positioning in the underperforming Backhoe Loader and Compactor segments. |
| Agri Machinery Product Mix | Less than 40 HP:Greater than 40 HP Tractor Sales Ratio in Q4 FY26 at 32:68 | Observe changes in the Agri Machinery product mix and its impact on EBIT margins, given past adverse effects. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -15.5% / mo · near 52W low
Technical chart
ESCORTSweekly · 5Y-23.3%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 37. Wait for confirmation.
- SMA20 falling (~18.4% over last month) — short-term momentum negative.
- RSI(14) at 37 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 57.2%.
- Balance sheet contributes 14/15 to the score.
Main drags
- Quality is weaker at 5/20; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
- Growth is weaker at 12/25; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 95th percentile of the scored universe and 95th percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 68%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 95th pctile, median 68 · Large: 84th pctile, median 74
138 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 68%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.8%.
- ▸9 years of positive FCF.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 23.20
- P/B
- 2.53
- EV/EBITDA
- 17.97
- Market Cap
- 31295.00Cr
Profitability
- ROE
- 11.90%
- ROCE
- 15.70%
- ROA
- 15.15%
- Dividend Y
- 1.00%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 26.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 74.80×
- Altman Z
- 7.89
- Book Value
- 1106.00
Cash Flow
- FCF Yield
- 0.81%
- FCF Positive Y
- 9/5
- OCF
- 1381.00 Cr
- EPS TTM
- 213.99
Shareholding
- Promoter Hold
- 68.04%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 7%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.