Escorts Kubota shares declined nearly 5 per cent in early trade on Friday after the company reported a muted set of March quarter earnings, with concerns around tractor margins and market share weighing on investor sentiment.
The stock traded at ₹3,221 on the NSE, down 3.7 per cent at 9.52 am, after falling to an intraday low of ₹3,186.10 against the previous close of ₹3,345.90.
Escorts Kubota shares fall nearly 5 per cent after Q4 results
Q4 consolidated net profit rises marginally to ₹320.52 crore
Tractor margin performance disappoints brokerages
Analysts remain cautious on valuations and market share trends
Farm and construction equipment maker reported a marginal increase in consolidated net profit at ₹320.52 crore for the quarter ended March 31, as operational performance remained under pressure despite stable demand conditions.
Brokerages flagged continued market share loss in the tractor segment as a key concern for investors. Domestic brokerage Motilal Oswal said synergies between Escorts and parent Kubota remain significant and are expected to materialise over the medium to long term. The brokerage expects the company to post a CAGR of 7 per cent in revenue, 4 per cent in EBITDA and 9 per cent in profit after tax over FY26-28E.
Motilal Oswal noted that the stock is trading at about 28.4 times FY27E earnings and 25.7 times FY28E earnings, a premium to its 10-year average valuation of nearly 20 times due to Kubota parentage. However, it believes most positives are already priced in and maintained a neutral rating with a target price of ₹3,159.
Kotak Securities maintained its add rating and raised the target price to ₹3,425 from ₹3,375, despite results coming in marginally below estimates. The brokerage expects the tractor industry to remain flat in FY27, while recovery in the construction equipment business is likely from the second half of FY27. It also highlighted diversification efforts aimed at reducing cyclicality in the business.
Global brokerage Macquarie maintained its outperform rating with a target price of ₹3,777, though it said tractor margin performance during the quarter was disappointing. The brokerage remains constructive on domestic tractor demand and expects export growth and cost optimisation initiatives to support earnings improvement going ahead.
Published on May 8, 2026