Escorts Kubota Q1 Results Review — Yes Securities Maintains 'Neutral' Stance On Unfavorable Risk-Reward

Escorts Kubota Q1 FY26 results were in-line to brokerage/street estimates. Revenues declined 2.9% YoY at Rs 24.8 billion (estimate Rs 25.8 billion) as agri/construction equipment revenues grew +0.4%/-20.8% YoY.

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Yes Securities Report

Escorts Kubota Ltd. is more vulnerable vs peers as-

1. with high reliance on North and Central and

2. aggressive expansion by Sonalika, TAFE, John Deere, etc. necessitating tight balance between market share and margins.

Despite recent correction, the valuations at 31.2x/27.5x FY26/27 EPS, do reflect positive synergies making risk reward yet not favorable.

We believe, benefits arising out of Kubota to start reflecting meaningfully led by exports ramp-up (FY26E) and localization (FY28E).

With FY26/27 EPS tweaked to build on raw material and mix impact, we maintain Neutral with revised target price of Rs 3,530 (vs Rs 3,538).

We value Escorts Kubota at 28x Mar’27 EPS and build in revenue/Ebitda/ PAT CAGR of 11.3%/17%/10.8% over FY25-27E.

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