ESCORTS · Capital Goods
Escorts Kubota Ltd. reported revenue of ₹2,500 cr for April to June 2025, −2.9% on the year and +2.2% on the quarter. Over the last four quarters revenue comes to ₹10,170 cr, +0.9% on the four before.
Operating profit (EBITDA) was ₹321 cr, a margin of 12.8%, +60 bps on the year and +110 bps on the quarter. It is the widest margin of the last 8 quarters (range 10.1% to 12.8%). Operating costs grew −3.5% against revenue growth of −2.9%, so more of each rupee of sales reached operating profit.
Net profit was ₹1,397 cr, +362.6% on the year and +339.3% on the quarter, with earnings per share of ₹124.88. Profit before other income, one-offs and tax grew 5.3%, so 357 points of the headline growth came from outside the core business. The tax rate was 8% against an average of 23% over the previous 7 quarters, which lifted profit this quarter. Profit over the last four quarters totals ₹2,360 cr, +118.1% on the four before.
A vehicle maker's revenue is volumes times average price, and its margin moves with steel, aluminium and rubber costs and with the share of exports and premium models. The quarterly statements do not carry volumes, realisation per vehicle and the export share; those come with the filing read.
On earnings per share of ₹210.98 over the last four quarters, the stock at ₹2,750.10 trades at 13.0 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Most of the profit growth did not come from the business. What lifted the gap?
Reported profit +362.6% on the year; profit before other income, exceptional items and tax +5.3%.
Source: Quarterly statements
Half or more of pre-tax profit came from other income. What is it, and does it repeat?
Other income was 83% of profit before tax, against 36% a year earlier.
Source: Quarterly statements
A lower tax rate lifted profit. Is the lower rate going to last?
Effective tax rate 8.0% against 21.3% over the previous quarters, worth about ₹202 cr of profit.
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹2,728 cr | ₹2,301 cr | ₹2,574 cr | ₹2,277 cr | ₹2,948 cr | ₹2,445 cr | ₹2,500 cr | ₹2,792 cr | ₹3,280 cr | ₹2,968 cr | ₹3,208 cr | ₹3,243 cr |
| YoY | — | — | +9% | −8% | +8% | +6% | −3% | +23% | +11% | +21% | +28% | +16% |
| EBITDA margin | 11.9% | 12.4% | 12.2% | 10.1% | 11.3% | 11.7% | 12.8% | 12.9% | 13.3% | 12.8% | 11.1% | 8.9% |
| Other income, % of PBT | 33% | 38% | 36% | 47% | 35% | 45% | 83% | 31% | 22% | 29% | 42% | 36% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 23% | 22% | 22% | −8% | 22% | 20% | 8% | 26% | 23% | 25% | 22% | 26% |
| Net profit | ₹299 cr | ₹270 cr | ₹302 cr | ₹324 cr | ₹321 cr | ₹318 cr | ₹1,397 cr | ₹318 cr | ₹358 cr | ₹321 cr | ₹386 cr | ₹250 cr |
| YoY | — | — | +4% | +54% | +7% | +18% | +363% | −2% | +12% | +1% | −72% | −21% |
| Core profit YoY | — | — | −15% | −19% | +4% | +3% | +5% | +84% | +36% | +39% | +10% | −27% |
| EPS | ₹27.01 | ₹24.43 | ₹27.30 | ₹28.98 | ₹28.66 | ₹28.46 | ₹124.88 | ₹28.92 | ₹32.03 | ₹28.65 | ₹35.08 | ₹22.74 |
| Flags | 1 | 1 | 2 | 3 | ✓ | ✓ | 3 | ✓ | ✓ | ✓ | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Escorts Kubota Ltd. reported revenue of ₹2,500 cr (−2.9% on the year) and net profit of ₹1,397 cr (+362.6% on the year) for April to June 2025.
Profit before other income, exceptional items and tax moved +5.3% on the year, against +362.6% for reported profit.
3 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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