Escorts Kubota Ltd. shares have slipped close to 2% on Friday, October 30, after the company announced that Agri Machinery Business Division will be hiking tractor prices across all its brands.
ESCORTS HIKES PRICES
In an exchange filing issued on Friday, October 30, the Faridabad-based tractor maker said that it will be increasing tractor prices across all its brands, affecting different variants and geographies within the Kubota, Farmtrac and Powertrac portfolios.
This hike in the prices will come into effect during November 2026 post the conclusion of the festive season.
Justifying the price hike, the company said that it has been trying to mitigating input cost pressures emerging from geopolitical headwinds (Iran war and crisis in Ukraine among other). The company also said that it is also tackling rupee depreciation through “focused cost-reduction and efficiency measures.”
Despite the measures, Escorts Kubota said that given the persistent adverse cost environment, a calibrated price increase is necessary. This, as per Escorts Kubota will allow to partially offset the impact, while keeping the increase for customers to a minimum.
Commenting the price hike, Manish Sharma, President – Agri Business, Escorts Kubota Limited, said, “We have made every effort to minimize the impact of rising input costs on our customers. This measured revision enables us to sustain our commitment to quality, innovation and customer value. We remain focused on delivering reliable, technology-led solutions through our Farmtrac, Powertrac and Kubota brands to support the productivity and profitability of Indian farmers.”
SEPTEMBER AUTO SALES
The company is set to announce its Q2FY27 results on Monday, November 2, 2026. Before that, in the month of September, the company a 16.7% slump in total tractor sales for September. In September 2026, the company sold 15,214 tractors, down from 18,267 units in the same month last year, as stated in their announcement on October 1.
Domestic tractor sales decreased to 14,911 units in September from 17,803 units a year prior, marking a decline of 16.2%. Meanwhile, export sales fell by 34.7%, dropping to 303 units from 464 units during the same timeframe.
STOCK PERFORMANCE
Shares of Escorts Kubota are trading 1.7% lower on Friday at ₹2,576.7. The stock is down 35% from its 52-week high of close to ₹4,000. The stock is down 5% in the last one month and 33% so far this year.
Escorts Kubota to increase tractor prices after the festive season as input costs bite