Escorts Kubota unveils new construction equipment line-up; sees strong demand in Q4 & double-digit tractor growth

Escorts Kubota has expanded its construction equipment portfolio with four new products developed using Kubota technology, as the company targets growth across both its machinery and tractor businesses. Whole-Time Director and CFO Bharat Madan said the launches will help fill gaps in the range and support volumes when demand improves in the coming quarters.Madan said the company has now commercially launched its new mini excavator in the 2.2–10 tonne category. This fills the mid-segment gap in Escorts Kubota’s line-up. “In mini excavators, we are already the market leader with about 26% market share,” he said, adding that the shift from backhoe loaders to mini excavators is increasing due to product advantages. Kubota, he noted, is a global leader in this category with nearly $3 billion in annual revenue from mini excavators alone.

The company also showcased a new backhoe loader prototype equipped with a Kubota engine, replacing Escorts’ earlier in-house engine. “Kubota is again a global leader… most industrial OEMs are using Kubota engines,” Madan said. The model will carry the E-Kubota brand name. Two additional products were displayed in the pick-and-carry crane segment: a 72-foot high boom crane for applications requiring extended reach, and the Hydra 15 crane. All four products comply with new emission norms.Also Read | Rajiv Bajaj shares 2026 game plan as Pulsar turns 25

Although mini excavators remain a core strength, construction equipment’s contribution to total revenue has slipped to about 10% in the first half of the fiscal year 2025-26 (FY26). Madan said last year the segment accounted for 17–18% but industry weakness this year has weighed on performance. He expects improvement from the March quarter. “March quarter is typically a very good quarter… spending from the government side normally gets a big push,” he said. Even then, he does not expect the company to fully offset the 20–21% degrowth seen in the first eight months of FY26. The segment is expected to return to 2024-25 (FY25) volume levels of 6,500–7,000 units in 2026-27 (FY27).

On the tractor business, Madan said industry growth remains robust. Domestic sales rose 16% in November and 11% in the April–November period. He expects the sector to achieve mid-double-digit growth for 2025-26. “15-18% growth can also happen,” he said, citing good monsoon trends, government subsidy programs and strong demand in key states such as Maharashtra.Also Read | CEAT MD says demand improving across segments, margins holding steady

Addressing concerns about unseasonal rains and crop prices, Madan said most key markets have not seen major disruptions. Rajasthan saw some impact, but he expects the rabi season to be strong in northern and central India, where the company has a higher market share.

Responding to speculation about a potential delisting of Escorts Kubota, Madan termed the reports unfounded. “No such plan, no such discussion,” he said.

Escorts Kubota, with a market capitalisation of ₹40,983.06 crore, has seen its stock rise more than 6% over the past year.

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