Escorts Kubota share price: Escorts Kubota Ltd on Thursday, May 7, announced its Q4 quarterly results for financial year 2025-26. The tractor maker also declared a final dividend of Rs 33 per share for FY26. Escorts Kubota, formerly Escorts Limited, operates in the sectors of agricultural machinery, construction machinery, material handling, and railway equipment.

Its headquarters are located in Faridabad, Haryana. This stock is also part of Rakesh Jhunjhunwala's portfolio.

Following its Q4 result, the brokerage firm, Motilal Oswal Financial Services, shared its stance on the tractor manufacturer. Here is what investors must know if they have this stock in their portfolio.

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Escorts Kubota share price: Motilal Oswal maintains Neutral rating - here's why

Motilal Oswal Financial Services maintains a Neutral stance on Escorts Kubota with a target price (TP) of approximately Rs 3,159, implying a downside potential of around 6 per cent.

The brokerage further highlighted that the company's outlook remains modest amid ongoing macroeconomic challenges.

New product launches are expected to support a revival in market share.

Earnings missed estimates due to lower-than-expected other income.

The firm further highlighted that the company's average tractor realisations remained flat YoY, impacted by an adverse product mix.

Escorts Kubota's operating leverage benefits contributed to margin improvement during the period.

Management expects tractor industry demand to moderate to a largely flat trajectory (±2-3%) in FY27.

Continued market share loss in the tractor segment over the last couple of years remains a key investor concern.

Synergies between Escorts and Kubota are likely to materialise over the medium to long term.

The brokerage factor in Escorts to deliver a CAGR of 7%/4%/9% in revenue/EBITDA/PAT over FY26-28E.

Escorts Kubota Q4 results

• Escorts Kubota's profit rose to Rs 325 crore in Q4FY26 from Rs 298 crore in Q4FY25, registering a 9.1% year-on-year growth.
• Revenue increased significantly to Rs 2,951 crore from Rs 2,430 crore last year, marking a robust 21.4 per cent growth.
• EBITDA grew even faster, climbing to Rs 387 crore from Rs 292 crore, a 32.5 per cent increase.
• This improvement also boosted the EBITDA margin to 13.1 per cent from 12 per cent in the previous year, expanding by 110 basis points.

Escorts Kubota Dividend 2026

The company has recommended a final dividend of Rs 33 per share for the quarter.

"Recommended Final Dividend of Rs 33/- (330%) per fully paid-up equity share of Rs 10/- each, for the Financial Year 2025-26, subject to the approval of members at the ensuing Annual General Meeting (AGM). The Final dividend, if declared, shall be paid within 30 days of the date of the AGM. The total dividend (including the special dividend) for the financial year would be Rs 51/- (510%) per fully paid-up equity share of Rs 10/- each," the company said in its exchange filing.

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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)