Escorts Kubota shares fell 6% in early trading on Friday following the release of disappointing earnings for the March quarter, raising concerns about tractor margins and market share among investors. The stock closed at ₹3,146.60, down 5.96%, after reaching an intraday low of ₹3,137.50, compared to the previous close of ₹3,345.90.
The company reported a slight increase in consolidated net profit, reaching ₹320.52 crore for the quarter ending March 31, despite operational pressures amid stable demand. Brokerages expressed concerns about ongoing market share losses in the tractor segment. Domestic brokerage Motilal Oswal indicated that the synergies between Escorts and its parent company, Kubota, remain significant and are expected to materialize over the medium to long term. They project that the company will achieve a compound annual growth rate (CAGR) of 7% in revenue, 4% in EBITDA, and 9% in profit after tax from FY26 to FY28E.
Motilal Oswal noted that the stock currently trades at approximately 28.4 times FY27E earnings and 25.7 times FY28E earnings, representing a premium to its 10-year average valuation of nearly 20 times, attributed to Kubota’s parentage. However, they maintained a neutral rating, citing that most positives are already reflected in the price, with a target price of ₹3,159.
Kotak Securities upheld its “add” rating and increased the target price to ₹3,425 from ₹3,375, even as the earnings results came in slightly below expectations. They foresee the tractor industry remaining flat in FY27, while recovery in the construction equipment sector is anticipated in the latter half of FY27. The brokerage emphasized the company’s diversification efforts aimed at mitigating cyclicality.
Global brokerage Macquarie maintained its “outperform” rating with a target price of ₹3,777, though it acknowledged the disappointing tractor margin performance in the quarter. They remain optimistic about domestic tractor demand and expect that export growth and cost optimization initiatives will enhance earnings moving forward.
Published on May 8, 2026.
