Tractor Stock Rides High on Strong February Sales, Jumps 3 per cent

Robust domestic and export sales drive investor optimism; company anticipates continued momentum with strong Rabi season outlook.

The stock of a leading tractor manufacturer Escorts Kubota Ltd are in focus today as its share price climbed 3.10 per cent to an intraday high of Rs 2,957.95 on the NSE. This surge followed the company’s announcement of impressive tractor sales figures for February 2025, reflecting a double-digit growth in overall sales.

The company’s Agri Machinery Business Division sold 8,590 tractors during the month, marking an 11.4 per cent rise compared to 7,709 units sold in February 2024. Domestic sales stood at 7,968 tractors, up 9.6 per cent from 7,269 units in the same month last year. Meanwhile, exports saw a significant boost, with 622 tractors shipped overseas—a 41.4 per cent jump from 440 units exported in February 2024.

Despite strong demand in key domestic markets, the western region faced some challenges due to lower crop prices affecting liquidity. However, the company remains optimistic about future sales, citing an increase in Rabi sowing, healthy water reservoir levels, and a favourable base effect as factors expected to sustain the growth momentum in the coming months.

For the third quarter of FY25, the company reported a 9 per cent increase in net profit, reaching Rs 323 crore compared to Rs 298 crore in the corresponding period last year. This result was in line with market expectations, which had projected a profit of Rs 324 crore.

Revenue for the quarter rose 9 per cent to Rs 2,935 crore from Rs 2,706 crore a year ago. However, this figure fell short of the estimated Rs 3,129 crore. EBITDA stood at Rs 335 crore, reflecting a modest 3 per cent growth from Rs 326 crore in Q3FY24, but it lagged behind analysts’ expectations of Rs 390 crore.

Margins took a slight hit, declining to 11.4 per cent from 12 per cent last year, indicating some pressure on profitability despite higher revenues.

With a market capitalization of over Rs 32,790 crore, the company is a well-established player in the agricultural machinery, railway modernization, and construction equipment sectors. Boasting eight decades of expertise, it has significantly contributed to India’s socio-economic progress through its diversified business verticals.

Despite today’s gains, the stock has corrected by more than 11 per cent on a year-to-date basis in 2025. 

Disclaimer: This article is for informational purposes only and should not be considered investment advice.