Escorts Kubota Sells 1,764 Construction Equipment Units in Q2FY27

Sales Rise 53.9% Year-on-Year to ₹536.2 Crore

Escorts Kubota Limited recorded a 53.9% year-on-year increase in construction equipment sales during Q2FY27. The company sold 1,764 units in the quarter ended September 2026, compared with 1,146 units in Q2FY26. Segment revenue also increased by 58.6% to ₹536.2 crore from ₹338.1 crore in the year-ago quarter.

Construction Equipment Sales Rise 31.3% Sequentially

Escorts Kubota also reported growth in construction equipment sales compared with the previous quarter. Sales increased 31.3% from 1,344 units in Q1FY27 to 1,764 units in Q2FY27.

Segment revenue followed a similar trend. It climbed 27.8% from ₹419.6 crore in Q1FY27 to ₹536.2 crore in Q2FY27.

The segment also improved its operating performance during the quarter. Its EBIT margin reached 7.9% in Q2FY27, compared with 3.8% in Q2FY26. This marked an improvement of 411 basis points.

Compared with the previous quarter, the EBIT margin increased by 250 basis points from 5.4% in Q1FY27. The improvement mainly came from operating leverage.

H1FY27 Construction Equipment Sales Grow 41.2%

Escorts Kubota recorded strong growth in construction equipment sales during the first half of FY27. The company sold 3,108 units between April and September 2026. This represented a 41.2% increase over 2,201 units sold during the same period last year.

The segment's revenue also registered healthy growth. It reached ₹955.8 crore in H1FY27, up 49.4% from ₹639.6 crore in H1FY26.

Meanwhile, the segment's EBIT margin improved by 206 basis points. It stood at 6.8% during H1FY27, compared with 4.7% in the corresponding period last year.

Commodity Costs Continue to Affect Profitability

Escorts Kubota's management highlighted higher commodity costs and changes in product mix as key factors affecting quarterly profitability.

Commenting on the results, management said: “Profitability during the quarter was impacted by elevated commodity costs and changes in product mix. While cost pressures remained higher than anticipated, we continue to focus on operational efficiencies and cost optimisation initiatives across the business. Assuming a stable commodity environment from Q4 onwards, we expect margins to improve gradually from Q4 and return closer to normal levels in FY28. Our product pipeline and innovation roadmap continue to support our long-term growth ambitions.”

The company expects construction equipment margins to benefit from gradual improvement, subject to a stable commodity environment from Q4 onwards.

Board Approves Q2 and H1FY27 Results

The Board of Directors of Escorts Kubota Limited approved the reviewed financial accounts for Q2FY27 and the first six months ended September 30, 2026.

The company's construction equipment segment delivered growth in sales, revenue and EBIT margins during both reporting periods.