Escorts Kubota Reports 28% Revenue Growth in Q1 FY27, Sees Strong Momentum for Construction Equipment Sector

Escorts Kubota Limited has started FY27 on a strong note, reporting robust financial and operational performance while expressing confidence in the outlook for India’s agricultural machinery and construction equipment sectors.

The company posted consolidated revenue from continuing operations of ₹3,207.55 crore during the first quarter of FY27, registering a year-on-year growth of 28.3%. The performance was supported by healthy demand across its tractor and construction equipment businesses, with both segments recording significant volume growth during the quarter.

Driven by improving rural demand and favourable agricultural conditions, Escorts Kubota has upgraded its domestic tractor industry growth forecast for FY27 from its earlier expectation of a plus or minus 2% to 3% variation to a mid-single-digit growth outlook. The company believes improving monsoon conditions and stronger retail demand are creating a positive environment for the agricultural machinery market.

The construction equipment business also delivered a strong performance during the quarter. Construction equipment sales increased 27.4% year-on-year to 1,344 units, while the division’s revenue rose 39.2% to ₹419.6 crore. The company expects the overall construction equipment industry to grow between 12% and 15% during FY27, led by rising demand for mini excavators and cranes. Demand for backhoe loaders and compactors is also expected to remain positive, although at a relatively moderate pace.

Escorts Kubota said it will continue investing in product development and capacity expansion to strengthen its position across key market segments. The company also plans to address product gaps, particularly in the 35–50 HP four-wheel-drive Powertrac category, to improve its competitiveness in the domestic market.

Industry experts believe the outlook remains encouraging as infrastructure spending by the government continues to support demand for construction machinery. Public investment in roads, railways, urban infrastructure and industrial projects is expected to sustain equipment utilisation across the country.

While rising prices of steel, aluminium and other raw materials remain a challenge for manufacturers, Escorts Kubota remains optimistic that strong demand, expanding financing options and continued infrastructure development will support growth through the remainder of FY27. The company’s improved guidance reflects increasing confidence in both rural recovery and India’s long-term infrastructure investment cycle.