Tractor industry growth of mid-to-high single digits for FY26
Management reiterated guidance of mid-to-high single digit growth for the tractor industry in FY26, with H2 growth likely to be marginal due to high base.
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EBITDA margin guidance of ~12.5% for FY26
Management guided EBITDA margin for the tractor business to remain around 12.5% for the full year, with Q2 facing headwinds from hardening metal prices.
Export volume growth of 25-30% in FY26
Management expects export tractor volumes to grow 25-30% in FY26, with monthly run-rate stabilizing at 500-600 units.
Capex of ₹350-400 crore for FY26 (organic)
Organic capex for FY26 is guided at ₹350-400 crore, excluding land acquisition for the greenfield UP plant.
FY27 Industry Growth Upgraded to Mid-Single-Digit
Management upgraded outlook from earlier flat-to-3% to mid-single-digit growth for domestic tractor industry in FY27, citing 45-50 days of strong demand and positive farmer sentiment.
Escorts to Outperform Industry
Company expects to grow faster than mid-single-digit industry outlook based on continued market share gains from new products and expanded dealer network.
FY27 Capex: ₹850-900 crore
Greenfield project (land acquisition) to spend ₹450-500 crore; normal capex ₹350-400 crore. Total greenfield budget of ₹2,000 crore over multi-year period.
Captive Finance Expansion Timeline
Targeting 40-50% dealer coverage by FY27 end and pan-India coverage by FY28 to support market share gains in underserved regions.
FY26 domestic tractor industry to reach ~11.5 lakh units
Management expects the domestic tractor industry to hit a new peak of around 11.5 lakh units in FY26, supported by healthy reservoir levels, robust crop yields, and favorable policies.
New product launches over next 6-8 months
The company plans to launch new models and upgrades across all brands in the next 6-8 months, with full market impact expected by end of FY27.
Greenfield plant first commercial production by 2029-30
The new greenfield facility in UP is expected to start commercial production around 2029-30, with land acquisition to be completed this fiscal.
Export growth to remain double-digit
Management expects export momentum to continue with double-digit growth, though at a slower pace than the current 63% YoY, driven by existing facilities.