Quick Facts / Company Snapshot
- Company Name: Escorts Kubota Limited (EKL)
- Founding Year: 1944
- Headquarters: Faridabad, Haryana, India
- Chairman & Managing Director: Mr. Nikhil Nanda
- Parent Company: Kubota Corporation, Japan (54.07% Shareholding)
- Total Revenue (FY 2024-25): ₹11,558.5 Crores
- Net Profit (FY 2024-25): ₹1,250.9 Crores
- Total Tractors Produced (FY 2024-25): 1,08,848 Units
- Total Construction Equipment Produced (FY 2024-25): 6,166 Units
- Total Employees: 17,205
- Research & Development Spend: ₹194.60 Crores
- Dividend Payout (FY 2024-25): ₹28 per Equity Share (280%)
- Agri Machinery Revenue Contribution: 76.1%
- Construction Equipment Revenue Contribution: 15.6%
- Total Manufacturing Plants: 8 (including Poland)
- Dealer Network: 1,600+ (Tractor Dealers)
- CSR Expenditure (FY 2024-25): ₹11.72 Crores
Company Overview
Escorts Kubota Limited (EKL) stands as one of India’s leading engineering conglomerates, boasting a legacy of over eight decades in driving the nation’s socio-economic growth. The company operates at the intersection of agricultural mechanisation and infrastructure development, positioning itself as a premier solution provider for smart agriculture and construction. Formerly known as Escorts Limited, the entity underwent a transformative evolution following its strategic integration with Kubota Corporation, Japan, merging global technological prowess with deep-rooted local market expertise.
The company envisions becoming a strategic global hub by leveraging Indian manufacturing capabilities to address societal issues worldwide. EKL’s mission is anchored in committing to society through the promotion of mechanisation and providing total solutions that enhance the quality of life, particularly for farmers and socially vulnerable groups. The organisation operates on a philosophy of “On Your Side,” emphasising a customer-centric approach where prosperity is built through collaboration rather than mere transaction.
In a significant strategic consolidation during the fiscal year 2024-25, the company successfully completed the amalgamation of Escorts Kubota India Private Limited and Kubota Agricultural Machinery India Private Limited into Escorts Kubota Limited. This unification under the “One EKL” umbrella has streamlined operations, creating a cohesive force designed for agility, efficiency, and resilience. Furthermore, the company has taken decisive steps to sharpen its business focus by approving the divestment of its Railway Equipment Division, thereby reallocating resources to its core growth engines: Agri Machinery and Construction Equipment.
Business Segments
Escorts Kubota Limited operates through distinct business verticals, each serving critical sectors of the economy. The company’s operations are categorised into the following primary segments:
Agri Machinery Business
This is the flagship segment of the company, serving as the backbone of its revenue generation. The Agri Machinery division is dedicated to transforming India’s agricultural landscape through advanced mechanisation solutions.
- Revenue Contribution: ₹8,447.2 Crores
- Percentage of Total Revenue: 76.1%
- Operational Scope: This segment includes the manufacturing and distribution of agricultural tractors, engines, and a growing portfolio of non-tractor agricultural solutions such as harvesters, rice transplanters, and implements. The division operates distinct profit centres for Engines, Agri Solutions, and Service & Spare Parts to drive synergy and focus.
Construction Equipment Business
The Construction Equipment division supports the nation’s infrastructure development by providing heavy machinery tailored for material handling, road building, and earthmoving applications.
- Revenue Contribution: ₹1,730.1 Crores
- Percentage of Total Revenue: 15.6%
- Operational Scope: EKL holds a strong market position with a 54% industry share in specific sub-segments like Pick-and-Carry cranes. The portfolio includes backhoe loaders, soil compactors, and cranes, designed to meet the dynamic needs of the mining, real estate, and infrastructure sectors.
Railway Equipment Business (Discontinued Operation)
Historically a core part of Escorts, this segment specialised in critical railway components. However, in line with the company’s strategic decision to focus on core agri and construction sectors, this division has been classified as a discontinued operation pending a “slump sale.”
- Revenue Contribution: ₹912.8 Crores
- Percentage of Total Revenue: 8.2%
- Operational Scope: Manufacturing of brake systems, couplers, suspension systems, and other safety-critical components for the Indian Railways and metro projects.
History and Evolution
The journey of Escorts Kubota Limited traces back eight decades, marked by pivotal milestones that have shaped the Indian engineering landscape.
- 1944: The foundation of Escorts was laid by Mr. Yudi Nanda and Mr. H.P. Nanda in Lahore as Escorts Agents Ltd.
- 1961: The company commenced production of Rajdoot motorcycles and successfully listed on the Bombay Stock Exchange (BSE). It also initiated its journey with the Indian Railways.
- 1962: Manufacturing of shock absorbers for passenger coaches began in collaboration with Boge, Germany. Simultaneously, tractor production commenced under the Escorts brand in collaboration with URSUS Poland.
- 1969: A significant joint venture was established with Ford Motors to manufacture tractors. The company also inaugurated a Training and Development Centre in Bengaluru.
- 1971: Production of construction equipment began, introducing the unique concept of Pick-and-Carry (PnC) cranes to the Indian market.
- 1974: The company made its debut in export markets, taking Indian engineering global.
- 1977: An independent Research & Development centre was established to focus on indigenous technology development.
- 1991: Escorts listed successfully on the National Stock Exchange (NSE).
- 1995: The “Farmtrac” brand of tractors was launched, catering to premium farming needs. The joint venture with Ford was discontinued during this period.
- 1998: The “Powertrac” brand of tractors was introduced, targeting fuel efficiency and value.
- 2004-2011: The company underwent significant restructuring to enhance operational efficiency and focus on growth.
- 2012: Indigenous bogie-mounted brake systems were manufactured for the Indian Railways.
- 2015: A joint venture with the Amul Group was formed to produce speciality tractors under the “Steeltrac” brand.
- 2016: The Escorts Skill Development Centre was launched in Faridabad, Haryana.
- 2017: The company conceptualised India’s first electric tractor, the Farmtrac 26E, and achieved IRIS certification for its railway components.
- 2018: The “Vision 2022” roadmap was declared to synchronise transformational growth.
- 2019: India’s first autonomous tractor concept was established. A strategic partnership with Kubota Corporation was formed to develop value-oriented tractors.
- 2020: The partnership with Kubota strengthened as Kubota acquired a 10% equity stake in Escorts. The Rajan Nanda Innovation Lab (RNIL) was launched.
- 2021: The company became the first in India to receive Budni Certification for electric tractors. Production of Kubota tractors commenced.
- 2022: Escorts Limited was renamed Escorts Kubota Limited (EKL) as Kubota Corporation increased its stake, becoming a joint promoter.
- 2023: Manufacturing of microprocessor-based controlled locomotive brake systems (EMCBS) began.
- 2024: A captive finance subsidiary, Escorts Kubota Finance Limited (EKFL), was launched.
- 2025: The merger of Kubota Agricultural Machinery India Pvt. Ltd. and Escorts Kubota India Pvt. Ltd. with Escorts Kubota Limited was successfully completed, unifying operations under “One EKL.”
Products and Services
EKL offers a diverse suite of products designed to boost efficiency and productivity across its business verticals.
Agri Machinery Products
- Tractors (15 HP to 110 HP):
- Farmtrac Series: Premium tractors focusing on advanced technology. Includes models like the Atom 26 (orchard specialist), FT 45 Classic, and the newly launched Promaxx Series (39, 42, 45, 47 HP variants) and Powermaxx 60.
- Powertrac Series: Known for fuel efficiency and power. Includes the Euro 47 Plus, Euro 50 Plus, Euro 42 Plus, and the specialized Euro G28 for inter-cultivation.
- Kubota Series: Japanese technology-driven tractors for precision farming. Models include the MU4501, L4508 (high capacity), NeoStar B2441 (sub-compact), and the A211N.
- Digitrac: An advanced online-exclusive tractor series, such as the PP46i.
- Steeltrac: Speciality tractors developed in joint venture contexts.
- Agri Solutions (Implements):
- Harvesting: Combine Harvesters (including new half-feed technology for paddy), Paddy Harvesters, and Straw Reapers.
- Planting & Tillage: Rice Transplanters (Walk-behind and Ride-on models), Rotavators, Super Seeders, and MB Ploughs.
- Crop Care: Orchard Sprayers like the MistTrac 600.
- Engines: Manufacturing of internal combustion engines for agricultural and industrial applications, including gensets.
- Service & Spare Parts: Providing genuine spare parts, oils, and lubricants to ensure machine longevity.
Construction Equipment Products
- Material Handling:
- Cranes: A wide range of Pick-and-Carry (PnC) cranes including the Hydra Series (Hydra 12, Hydra 15) and high-end F-Series (F23). Known for high lifting capacity and mobility.
- Earthmoving:
- Backhoe Loaders: The flagship BLX 75 is a new benchmark product featuring a modular design, robust structure, and adherence to new emission norms. Other models include the Digmax series.
- Mini Excavators: Compact machines like the KX033 and U Series (U17) designed for urban construction and tight access areas.
- Road Building:
- Compactors: Soil Compactors like the EC5250 Plus (110 HP) and Tandem Rollers like the HD85 Plus for asphalt compaction.
Financial Services
- Escorts Kubota Finance Limited (EKFL): A wholly-owned subsidiary providing captive financing solutions to customers and dealers, ensuring seamless access to EKL products.
Brand Portfolio
The company manages a multi-brand strategy to cater to diverse customer segments ranging from value-conscious farmers to premium technology seekers.
- Farmtrac: Positioning as a premium brand offering advanced technology, style, and comfort for medium to large-scale farmers.
- Powertrac: Positioning as “Diesel Saver” tractors, focusing on fuel efficiency and power for maximizing savings.
- Kubota: Represents premium Japanese technology, durability, and precision farming capabilities.
- Steeltrac: Targeted at speciality farming applications.
- Farmpower: Associated with agri-implements and solutions.
- Digitrac: A digital-first brand offering advanced features and direct-to-consumer sales models.
Geographical Presence
Escorts Kubota Limited has established a significant footprint both within India and across the globe, leveraging Kubota’s expansive network.
- Global Reach: The company exports to over 120 markets worldwide, with a strong presence in Europe, North America, and emerging markets.
- Domestic Network: In India, EKL operates through a vast network of over 1,600 tractor dealers and more than 250 construction equipment touchpoints.
- Manufacturing Footprint: The company operates 8 manufacturing plants in total.
- India: 4 dedicated plants for tractors and components in Faridabad, Haryana. 1 dedicated plant for construction equipment in Ballabhgarh, Haryana.
- Poland: 1 manufacturing plant operated by the subsidiary Farmtrac Tractors Europe Sp. z.o.o. with an annual capacity of 2,500 tractors.
- Revenue Split:
- Domestic Revenue (India): ₹9,650.58 Crores
- Export Revenue (Outside India): ₹593.30 Crores
Financial Performance Analysis
The financial year 2024-25 marked a period of robust performance for EKL, driven by strategic consolidation and operational efficiencies.
- Total Income: ₹11,558.5 Crores
- Revenue from Operations: ₹10,187.0 Crores (Standalone) / ₹10,243.88 Crores (Consolidated)
- EBITDA: ₹1,177.8 Crores (Standalone Continuing Operations)
- EBITDA Margin: 11.6%
- Net Profit (PAT): ₹1,250.9 Crores
- Earnings Per Share (EPS): ₹113.77 (Basic)
- Market Capitalisation: Approximately ₹36,300 Crores (as of March 31, 2025), reflecting a growth of ~24X over the last decade.
Multi-Year Trend Analysis
- Revenue Growth: Revenue grew by 4.7% year-on-year from ₹9,730.7 Crores in the previous fiscal.
- Profitability: Net Profit saw a significant surge of 15.7% compared to ₹1,081.6 Crores in the previous year.
- Dividend Growth: The total dividend payout increased by 56% over the previous year, signaling strong cash flows and shareholder value creation.
Profit and Loss Analysis
A detailed breakdown of the Consolidated Statement of Profit and Loss for the year ended March 31, 2025:
- Revenue from Operations: ₹10,243.88 Crores
- Other Income: ₹461.31 Crores
- Total Income: ₹10,705.19 Crores
- Expenses:
- Cost of Materials Consumed: ₹5,287.85 Crores
- Employee Benefits Expense: ₹774.45 Crores
- Finance Costs: ₹29.17 Crores
- Depreciation & Amortisation: ₹243.65 Crores
- Other Expenses: ₹1,048.99 Crores
- Total Expenses: ₹9,351.40 Crores
- Profit Before Tax (Continuing Operations): ₹1,351.01 Crores
- Tax Expense: ₹226.95 Crores
- Profit from Continuing Operations: ₹1,124.06 Crores
- Profit from Discontinued Operations (Net of Tax): ₹140.89 Crores
- Profit for the Year: ₹1,264.95 Crores
Balance Sheet Analysis
A detailed breakdown of the Consolidated Balance Sheet as at March 31, 2025:
- Total Assets: ₹13,098.49 Crores
- Non-Current Assets: ₹5,963.12 Crores (Includes Property, Plant & Equipment of ₹1,889.52 Crores and Investments of ₹3,272.95 Crores)
- Current Assets: ₹6,534.32 Crores (Includes Inventories of ₹1,398.99 Crores, Trade Receivables of ₹1,331.84 Crores, and Cash & Cash Equivalents of ₹342.67 Crores)
- Assets Held for Sale: ₹601.05 Crores
- Total Equity: ₹10,362.90 Crores
- Equity Share Capital: ₹111.88 Crores
- Other Equity: ₹10,254.92 Crores
- Total Liabilities: ₹2,735.59 Crores
- Non-Current Liabilities: ₹247.78 Crores (Includes Lease Liabilities of ₹67.74 Crores)
- Current Liabilities: ₹2,380.68 Crores (Includes Trade Payables of ₹1,639.89 Crores)
- Net Debt: The company maintains a net-debt-free status with robust liquidity.
Cash Flow Analysis
Insights from the Consolidated Statement of Cash Flows for the year ended March 31, 2025:
- Cash Flow from Operating Activities: Net cash generated was ₹1,003.19 Crores. This indicates strong operational efficiency and working capital management.
- Cash Flow from Investing Activities: Net cash used was ₹(193.95) Crores. This includes capital expenditure of ₹223.10 Crores on property, plant, and equipment, reflecting continued investment in capacity and technology.
- Cash Flow from Financing Activities: Net cash used was ₹(701.86) Crores. Major outflows included dividend payments of ₹305.46 Crores and repayment of long-term borrowings amounting to ₹125.56 Crores.
- Net Increase in Cash and Cash Equivalents: ₹107.38 Crores, leading to a closing balance of ₹343.93 Crores.
Board of Directors and Leadership Team
- Mr. Nikhil Nanda: Chairman and Managing Director. Leads strategic planning and innovation.
- Mr. Seiji Fukuoka: Deputy Managing Director. Represents Kubota Corporation, focusing on integration and operational excellence.
- Mr. Bharat Madan: Whole-time Director & Chief Financial Officer. Oversees finance, legal, IT, and investor relations.
- Ms. Nitasha Nanda: Whole-time Director. Heads the CSR Committee and monitors ESG goals.
- Mr. Hardeep Singh: Non-Executive Director. Brings expertise in agriculture and economics.
- Mr. Sunil Kant Munjal: Independent Director. Chairman of Hero Enterprise.
- Ms. Tanya Arvind Dubash: Independent Director. Executive Director & Chief Brand Officer of Godrej Industries.
- Mr. Harish N. Salve: Independent Director. Senior Counsel and former Solicitor General of India.
- Mr. Ravindra Chandra Bhargava: Independent Director. Chairman of Maruti Suzuki India Limited.
- Mr. Vimal Bhandari: Independent Director. Expert in financial services.
- Ms. Reema Nanavaty: Independent Director. Leads SEWA (Self Employed Women’s Association).
- Mr. Manish Sharma: Independent Director. Former Chairman of Panasonic India.
- Dr. Rupinder Singh Sodhi: Independent Director. President of the Indian Dairy Association.
- Mr. Kinji Saito: Independent Director. From Suzuki Motor Corporation.
- Mr. Dai Watanabe, Mr. Yasukazu Kamada, Mr. Nobushige Ichikawa, Mr. Shingo Hanada: Non-Executive Nominee Directors representing Kubota Corporation.
Subsidiaries, Associates, Joint Ventures
EKL has a network of subsidiaries and joint ventures that complement its core business.
- Escorts Kubota Finance Limited (EKFL): 100% Subsidiary. A captive NBFC established to provide financing solutions.
- Farmtrac Tractors Europe Sp. z.o.o. (Poland): 100% Subsidiary. Manufacturing and assembly hub for Europe.
- Escorts Crop Solutions Limited: 100% Subsidiary. Focuses on crop solutions and services.
- Invigorated Business Consulting Limited: 67.87% Subsidiary. Formerly Escorts Finance Limited.
- Adico Escorts Agri Equipment Private Limited: 40% Joint Venture. Manufacturing and trading of agricultural equipment.
- Escorts Consumer Credit Limited: 29.41% Associate. Engaged in financing activities.
- EKL CSR Foundation: 100% Subsidiary. Implements CSR initiatives.
Physical Properties
The company operates a comprehensive infrastructure network:
- Corporate Centre & Registered Office: 15/5, Mathura Road, Faridabad, Haryana.
- Manufacturing Plants:
- Agri Machinery: 4 Plants in Faridabad, Haryana (Plot No. 18/4, 15/5, Plot No. 2, Plot No. 3).
- Construction Equipment: 1 Plant in Ballabhgarh, Haryana (Plot No. 219, Sector-58).
- Poland Plant: Mragowo, Poland (Assembly capacity of 2,500 tractors).
- Other Locations: Facilities in Thiruvallur (Tamil Nadu) and Pune (Maharashtra).
- R&D Centres: Dedicated R&D centre and Knowledge Management Centre in Faridabad.
- Training Centres: Escorts Training and Development Centre in Bengaluru.
Segment-wise Performance
- Agri Machinery:
- Revenue: ₹8,447.2 Crores (Up 7.0% YoY).
- EBIT Margin: 10.7%.
- Key Drivers: Launch of Promaxx series, strong paddy-focused agri solutions sales.
- Construction Equipment:
- Revenue: ₹1,730.1 Crores.
- EBIT Margin: 9.9% (Up 75 basis points).
- Key Drivers: Launch of BLX 75 backhoe loader and Stage V emission norms compliance.
- Railway Equipment (Discontinued):
- Revenue: ₹912.8 Crores.
- PBT: ₹188.7 Crores.
- Status: Divestment approved via slump sale.
Founders
Escorts was founded in 1944 by two brothers:
- Mr. Yudi Nanda
- Mr. H.P. Nanda
They laid the foundation of Escorts Agents Ltd. in Lahore, which later moved to India post-partition, growing into the engineering giant it is today.
Shareholding Pattern
As of March 31, 2025:
- Promoters:
- Kubota Corporation: 54.07% (6,04,92,462 shares)
- Har Parshad and Company Private Limited: 9.59%
- Nanda Family Trusts & Individuals: Significant minority holdings (e.g., Nikhil Nanda holds 1.08%).
- Public/Institutional:
- HDFC Asset Management Company: 5.45%
- Other Public Shareholders hold the remaining balance.
Parent Company
Kubota Corporation
- Headquarters: Osaka, Japan.
- Role: Kubota is a global leader in water, environment, and agricultural machinery. As the parent company with a 54.07% stake, it provides EKL with technological expertise, global supply chain access, and strategic direction to become a “Global Hub” for Kubota’s manufacturing.
Investments and Capital Expenditure Plans
- Capex Allocation: The company has earmarked ₹350-400 Crores for FY 2025-26.
- 75% allocated to new product development in agriculture and construction.
- 25% allocated to upgrading manufacturing capabilities.
- Greenfield Expansion: EKL has submitted an intent to the Government of Uttar Pradesh to set up a new Greenfield Facility near Jewar Airport. This project involves an estimated direct and indirect investment of approx. ₹4,500 Crores over phases to expand capacity and global competitiveness.
Future Strategy
EKL’s strategy is guided by its Mid-Term Business Plan (MTBP) 2028.
- Expansion: Becoming a global sourcing hub for Kubota components and tractors.
- Product Innovation: Launching at least two new mechanisation solutions annually. Introducing EV and hybrid technologies in the next 2-5 years.
- Market Focus: Strengthening presence in western and central India with the Promaxx series. Expanding export penetration in Europe, USA, and emerging markets.
- Operational Efficiency: Achieving cost leadership through “frugal engineering” and localized supply chains.
Competitive Landscape
The report implicitly positions EKL against other major players in the Indian tractor and construction equipment industry. While specific competitor names are not listed in a comparative table, the company acknowledges “intensifying domestic competition” from emerging and long-standing market participants. EKL differentiates itself through its dual-brand strategy (Farmtrac/Powertrac) and the premium Kubota technology edge.
Key Strengths
- Technological Synergy: The unique Indo-Japanese partnership combines Kubota’s global technology with Escorts’ frugal engineering.
- Robust Distribution: A massive network of 1,600+ dealers ensures deep market penetration.
- Diverse Portfolio: Covering the entire value chain from tractors (15-110 HP) to harvesters and construction cranes.
- Financial Strength: A net-debt-free balance sheet with strong liquidity and a “AA+/Stable” credit rating from CRISIL.
- Innovation: In-house R&D spending of ₹194.60 Crores, creating products like the autonomous tractor concept and electric tractors.
Key Challenges and Risks
- Commodity Price Volatility: Fluctuations in raw material prices (steel, rubber) can impact margins.
- Cyclical Demand: The agri business is highly dependent on monsoons and crop cycles.
- Regulatory Changes: Evolving emission norms (e.g., TREM V, BS V) require constant technological upgrades and cost management.
- Geopolitical Risks: Global trade tensions can disrupt supply chains and export markets.
- Competition: Increasing price-based competition in the domestic market puts pressure on realisations.
Conclusion and Strategic Outlook
Escorts Kubota Limited has successfully transitioned from a legacy Indian company to a global engineering powerhouse under the “One EKL” vision. The successful merger and the upcoming divestment of the railway business demonstrate a clear strategic focus on its core strengths: Agriculture and Construction. With a robust financial foundation, a massive greenfield expansion plan in Uttar Pradesh, and the backing of Kubota’s global network, EKL is poised for a new era of growth. The company’s commitment to sustainability (Carbon Neutral by 2050) and innovation ensures it remains future-ready while staying true to its purpose of spreading prosperity.
Official Site: https://www.escortskubota.com
FAQ Section:
- What is the total revenue of Escorts Kubota Limited for FY 2024-25? Escorts Kubota Limited reported a total income of ₹11,558.5 Crores for the financial year 2024-25.
- Who are the promoters of Escorts Kubota Limited? The promoters are Kubota Corporation, Japan (holding 54.07%) and the Nanda Family.
- What are the main business segments of EKL? The main segments are Agri Machinery (tractors, solutions) and Construction Equipment (cranes, compactors). The Railway Equipment business is being divested.
- Where are Escorts Kubota’s manufacturing plants located? The company has manufacturing facilities in Faridabad and Ballabhgarh in Haryana, India, and a plant in Mragowo, Poland.
- What is the dividend payout for FY 2024-25? The Board recommended a total dividend of ₹28 per equity share, which includes an interim dividend of ₹10 and a final dividend of ₹18.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
