Shares of Escorts Kubota climbed nearly 3% in Thursday’s session, January 1, trading around Rs 3,829.90, after the company reported a sharp jump in tractor sales for December 2025, driven by strong domestic demand and higher exports.
In an exchange filing, Escorts Kubota said its Agri Machinery Business sold 7,577 tractors in December 2025, compared with 5,472 units in December 2024, registering a 38.5% year-on-year growth. The strong volume performance brought the stock into focus despite continued pressure in the construction equipment segment.
Domestic tractor sales stood at 6,828 units, up 36.1% YoY from 5,016 units sold in the year-ago period. The company attributed the strong domestic performance to supportive government policies, lower GST rates, and continued state subsidies, which improved affordability for farmers.
Escorts Kubota also highlighted favourable rural factors, including a strong Kharif output, higher Rabi sowing, improved water availability, and positive rural sentiment, all of which contributed to robust retail demand during the month.
Exports showed an even sharper rise, with tractor shipments increasing to 749 units in December 2025 from 456 units last year, marking a 64.3% YoY growth. 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.
However, Escorts Kubota’s Construction Equipment Business continued to face pressure. The company reported sales of 812 machines in December 2025, lower than 873 machines sold in December 2024, reflecting a 7.0% YoY decline. For the April–December FY26 period, construction equipment sales declined 17.8% YoY to 3,917 units.
The company noted that December 2024 had seen pre-buying ahead of emission norm changes, making year-on-year comparisons less meaningful. It added that while sentiment has improved compared to previous months, the sector continues to face challenges from slow project mobilisation, weak rental rates, and elevated costs linked to CEV Stage V compliance.
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