The brokerage noted that the demand for Escorts Kubota's tractor has become less dependent on monsoon variability because of structural buffers including irrigation, minimum support price (MSP) support, income diversification, non-agricultural usage and improved finances.
It added that the recent GST cut and improvement in terms of trade, are likely to limit the decline in tractor volumes.
The brokerage also highlighted that the Escorts Kubota's recent launches aim to address product gaps and should drive market share gains. With newer launches in the tractor segment, it believes the company’s the market share has bottomed out and will start inching upward in the coming quarters. It said the construction equipment industry is well-poised for recovery from the ongoing calendar year.
Further, the brokerage expects Escorts Kubota's construction equipment segment to recover from the calendar year 2026. The company’s diversification into spares, engines and agri-solutions should help broaden revenue base, the brokerage said.
Meanwhile, the tractor manufacturer announced that its agri-machinery business division sales grew by 20.4% to 10,339 units in February 2026 as against 8,590 units sold in February 2025.
Escorts Kubota is primarily engaged in the business of manufacturing agricultural tractors, engines for agricultural tractors, construction, earthmoving, and material handling equipment; round and flat tubes; heating elements; and double-acting hydraulics.
The company’s consolidated net profit increased 11.8% to Rs 358.32 crore on 11.3% jump in net sales to Rs 3,280.49 crore in Q3 FY26 over Q3 FY25.