Target: ₹3,530
CMP: ₹3,148.80
The Agri Machinery segment showed robust performance in FY26, with Escorts Kubota achieving its highest-ever domestic tractor sales, totaling 126,994 units, marking a 14.9 percent increase year-on-year. This growth was supported by strong rural demand, government support measures, and notable traction in Southern and Western regions. However, the overall industry growth of 23.4 percent exceeded the company’s performance, attributable to Escorts’ relatively limited presence in high-growth areas.
To address market gaps and enhance its market share, the company introduced 13 new tractor models throughout the year, including the “Paddy Special” tractors designed for Southern markets. The non-tractor farm machinery segment also maintained its positive trajectory, registering over 35 percent compound annual growth rate (CAGR) over the past three years. Management remains optimistic about sustaining growth rates above 20 percent over the next three years.
The export segment experienced notable growth in FY26, with tractor export volumes climbing 33.8 percent year-on-year to 6,676 units, outpacing the broader industry growth of approximately 7 percent.
Management is committed to long-term growth strategies that include new product launches, increased localization, export expansion, captive financing, and planned greenfield projects. However, the outlook for the domestic tractor market in FY27 is expected to be relatively flat due to a high base effect, commodity inflation, and uncertainties related to monsoon conditions.
The company continues to maintain a Hold rating on its stock, with a revised target price of ₹3,530, down from ₹3,590.
Published on May 8, 2026
