Escorts Kubota's ride is bumpy amid demand concerns

Escorts Kubota Ltd continues to grapple with the challenges of weak export volumes and subdued construction equipment demand.

- Nishant Sasne

Escorts Kubota Ltd continues to grapple with the challenges of weak export volumes and subdued construction equipment demand. The company's H1FY25 figures paint a bleak picture: total tractor volumes fell 3.6% year-on-year (y-o-y) with domestic volumes declining 2.5%. Construction equipment volume dropped 12.6%, and railway segment revenue contracted by 14.3%. However, the company expects demand trends to remain buoyant during H2FY25, going by its recent interactions with analysts at Kotak Institutional Equities.