Escorts Kubota Reports 15% Growth in Tractor Sales for March 2025

Escorts Kubota Limited (EKL) has announced a robust 15% growth in tractor sales for March 2025, with total sales reaching 11,374 units compared to 9,888 units in the same month last year. The recovery reflects growing momentum in India's agricultural machinery sector, which has been showing signs of a revival throughout fiscal year 2024-25.

According to the company's latest regulatory filing, domestic tractor sales increased by 15.2% to 10,775 units in March 2025, up from 9,355 units in March 2024. Export sales also showed healthy growth of 12.4%, reaching 599 units compared to 533 units in the previous year.

Bharat Madan, Whole Time Director and Chief Financial Officer of Escorts Kubota, attributed the growth to seasonal factors and positive market conditions. "The start of Chaitra Navratri festival in March has led to good demand from our strong market," said Madan in the company statement. The company expects this growth momentum to continue in the coming months, driven by "the initial forecast of a normal South-West monsoon this year, along with increased Rabi sowing, good water reservoir levels, and favorable base conditions."

Full-Year Performance Shows Modest Growth

For the full fiscal year 2024-25, Escorts Kubota's total tractor sales reached 115,554 units, representing a modest 1% increase over the 114,396 units sold in FY 2023-24. Domestic sales for the full year showed a 1.6% growth to 110,563 units, while export sales declined by 11.2% to 4,991 units.

The fourth quarter (January-March 2025) showed more substantial growth, with total tractor sales increasing by 7.6% to 26,633 units compared to 24,747 units in the same period last year.

Indian Tractor Sector: A Tale of Recovery

The positive results from Escorts Kubota align with the broader recovery seen in India's tractor sector through 2024-25. Calendar year 2024 marked a significant milestone for the industry, with total domestic sales reaching an all-time high of 894,112 units—a 2.55% increase over the 871,918 units sold in 2023.

This growth represented a reversal of the marginal decline witnessed in FY 2023-24, where sales had dipped by approximately 4% due to erratic weather patterns. The turnaround was particularly evident in the latter half of 2024, with October and December emerging as standout months, seeing sales increases of 22% and 25.7% year-on-year respectively.

Industry analysts attribute this recovery to several key factors, inclcuding favorable monsoon conditions, with the 2024 southwest monsoon delivering 108% of the long-period average rainfall. The country has also seen increased agricultural output, particularly in rice production, with the government supportting the sector through various subsidy schemes and Minimum Support Price hikes.

Construction Equipment Business Faces Challenges

In contrast to the positive performance in the tractor segment, Escorts Kubota's Construction Equipment Business Division reported a 16.3% decline in sales for March 2025, with 614 machines sold compared to 734 machines in March 2024.

For the full fiscal year 2024-25, construction equipment sales fell by 9.2% to 6,484 units. The company cited "short-term challenges as a result of changes in emission norms, which have led to increased costs for customers" as the primary reason for the decline.

However, the company remains optimistic about the long-term prospects for this segment, stating that "with the Government's unwavering dedication to infrastructure development, we anticipate that this will lay a solid foundation for sustained growth in the construction equipment industry for the fiscal year 2026."

While Escorts Kubota has shown growth in its tractor business, the company continues to navigate a competitive landscape. Industry leader Mahindra & Mahindra cemented its position in 2024, capturing a record market share of approximately 42.5% in the second quarter of FY 2024-25.

Other major players including TAFE and Sonalika Tractors have maintained their market positions, with varied performances across different regions of India.

As the agricultural sector in India continues to embrace mechanization, the tractor industry is projected to see continued growth. Industry forecasts suggest sales could approach or exceed 1 million units by FY 2025-26, driven by sustained government spending, rural infrastructure development, and technological advancements.

For Escorts Kubota specifically, the positive trends in its core tractor business, coupled with the anticipated recovery in construction equipment sales, suggest a potentially strong performance in the coming fiscal year, provided external factors such as monsoon variability and global commodity price fluctuations remain favorable.