Escorts Kubota reported a sharp 38.5% year-on-year growth in tractor volumes for December 2025, driven by strong domestic demand and higher exports, even as its construction equipment segment continued to face pressure.
Tractor sales surge in December
Escorts Kubota Limited informed stock exchanges on January 1, 2026 that its Agri Machinery Business sold 7,577 tractors in December 2025, compared with 5,472 units in December 2024, registering a 38.5% YoY growth .
Domestic tractor sales stood at 6,828 units, up 36.1% YoY from 5,016 units sold in the year-ago period. The company said domestic industry performance remained strong during the month, supported by government policies, lower GST rates, and continued state subsidies, which improved affordability for farmers.
Escorts Kubota also highlighted that strong Kharif output, higher Rabi sowing, improved water availability, and positive rural sentiment contributed to robust retail demand, helping the industry sustain momentum.
Export volumes show strong growth
Export tractor sales rose sharply to 749 units in December 2025, compared with 456 units in December 2024, marking a 64.3% YoY increase .
For the April–December FY26 period, total tractor sales stood at 1,01,413 units, up 14.0% YoY, with domestic volumes growing 12.6% and exports rising 53.9% over the same period last year.
Construction equipment remains under pressure
In contrast, Escorts Kubota’s Construction Equipment Business reported sales of 812 machines in December 2025, lower than 873 machines sold in December 2024, reflecting a 7.0% YoY decline .
The company noted that December 2024 had seen pre-buying ahead of emission norm changes, making the year-on-year comparison less meaningful. It added that sentiment has improved compared to previous months, though the sector continues to face challenges from slow project mobilisation, weak rental rates, and elevated costs linked to CEV Stage V compliance.
For the April–December FY26 period, construction equipment sales declined 17.8% YoY to 3,917 units.
Why the stock is in focus today
The sharp acceleration in tractor volumes, especially in the domestic market and exports, has brought Escorts Kubota into focus on January 1, even as investors continue to track recovery trends in the construction equipment segment amid infrastructure spending expectations.
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