Core Insights - The India-US interim trade deal presents a significant opportunity for Escorts Kubota to explore exporting tractors to the US market [1][2] - Kubota Corporation aims to leverage India as a growth engine and a global hub for R&D, procurement, and production under its mid-term business plan for 2030 [1][5] Company Insights - Escorts Kubota is currently not exporting to the US but sees potential due to the new tariff situation, which may allow for competitive pricing compared to Japanese exports [2][3] - The company is considering manufacturing tractors in India to enhance export opportunities, which would benefit the parent company [5] Industry Insights - The tractor industry in India is expected to experience significant growth, with a projected increase of 30-35% in the March quarter following a 23% growth in the previous quarter due to GST rate reductions [6][7] - In the quarter ended December 2025, Escorts Kubota reported tractor volumes of 36,955 units, reflecting a 13.5% increase from the same quarter in the previous fiscal year [7]

Core Insights - Kubota Corporation aims to transform India into its growth engine as part of its mid-term business plan for 2030, focusing on business and projects from India as a key strategy aspect [1][5] - The India-US interim trade deal presents an opportunity for Escorts Kubota to explore exporting tractors to the US market, which is currently not being tapped [1][2] - The company is currently exporting from Japan, facing a 15% tariff, while the tariff for India stands at 18%, indicating a potential for competitive advantage if production shifts to India [2] Group 1: Business Strategy - Kubota plans to leverage India as a global hub for R&D, procurement, and production, aiming to enhance cost competitiveness and strengthen its supply chain [5] - The company sees the possibility of manufacturing tractors in India for export, which would be beneficial for the parent company [5] Group 2: Market Outlook - The tractor industry in India is expected to grow significantly, with a 23% increase recorded in the third quarter following a GST rate reduction [6] - Projections indicate that the industry could grow by approximately 30-35% in the March quarter, with momentum expected to continue through July-August before a high base effect impacts growth [7] - In the quarter ending December 2025, Escorts Kubota reported tractor volumes of 36,955 units, reflecting a 13.5% increase from 32,556 units in the same quarter of the previous fiscal year [7]

Group 1: India-US Trade Deal Impact - The India-US interim trade deal presents an opportunity for Escorts Kubota to explore exporting tractors to the US market [1][2] - Currently, the company is not exporting to the US, but the new tariff situation may facilitate market entry [2] - The parent company, Kubota Corporation, is currently exporting from Japan, facing a 15% tariff, which is comparable to India's 18% tariff [3] Group 2: Kubota's Strategic Plans - Kubota Corporation aims to make India a growth engine under its mid-term business plan for 2030, focusing on R&D, procurement, and production [4] - The strategy includes leveraging India to enhance cost competitiveness and strengthen the supply chain [4] Group 3: EU Trade Relations and Domestic Market Outlook - The tariff on tractors for the India-EU Free Trade Agreement (FTA) is already zero, and no major impact on the tractor business is expected [5] - The tractor industry in India is projected to grow significantly, with a 23% increase in the third quarter following GST rate reductions [5] - For the March quarter, industry growth is anticipated to be around 30-35%, with momentum expected to continue into mid-year [6] - In the quarter ending December 2025, Escorts Kubota reported tractor volumes of 36,955 units, a 13.5% increase from the previous year [6]

Core Viewpoint - Kubota Corporation aims to transform India into its growth engine under its 2030 mid-term business plan, identifying it as a key pillar alongside its construction machinery business in North America and lifecycle support business [1][11]. Growth Strategy - The company plans to leverage India as a global hub for R&D, procurement, and production to enhance cost competitiveness and strengthen its supply chain [2][11]. - Kubota anticipates strong economic growth in India, with real GDP growth projected at 8% in the first half of fiscal 2025, supported by solid domestic demand [5][11]. Market Opportunities - India is recognized as the world's largest tractor market, with expectations for continued expansion due to economic development and increased agricultural mechanization [6][11]. - The company aims to tap into the global market expansion of basic tractors, noting growing demand in Europe and low agricultural mechanization rates in Africa and Latin America, which may be boosted by government subsidies [8][11]. Product Development and Cost Competitiveness - Kubota plans to enhance cost competitiveness by introducing new products under the Kubota brand, utilizing resources from Escorts Kubota [6][11]. - The company will implement the Kubota production system (KPS) to improve quality and productivity, while also expanding its product lineup across its three brands: Farmtrac, Powertrac, and Kubota [7][11]. Future Investments - Future investments include establishing a new plant in India, with a 200-acre site in Uttar Pradesh allocated for a ₹4,500 crore tractor manufacturing unit [10][11].

Core Insights - Mahindra & Mahindra Limited reported a 33% increase in standalone profit after tax to ₹3,931 crore for Q3 FY26, compared to ₹2,964 crore in the same period last year [1] - Standalone revenue from operations grew 26% year-on-year to ₹38,942 crore in Q3, up from ₹30,964 crore [2] - The company achieved a consolidated PAT of ₹4,675 crore, up 54% excluding the impact of new labour code regulations, on revenue of ₹52,100 crore [5] Financial Performance - The automotive division generated revenue of ₹28,361 crore with a PBIT of ₹2,684 crore, resulting in a 9.5% margin [3] - The farm equipment segment reported revenue of ₹10,200 crore, PBIT of ₹2,061 crore, and a margin of 20.2% [3] - For the nine months ended December 2025, standalone PAT reached ₹11,902 crore on revenue of ₹1,08,164 crore [2] Market Performance - The company sold 302,238 vehicles during the quarter, a 23% increase from the previous year [3] - Tractor sales stood at 149,567 units, also up 23% year-on-year [3] - The company gained a 90 basis points year-on-year increase in SUV revenue share and a 10 basis points increase in LCV market share below 3.5 tonnes [4] Exceptional Charges - The results included an exceptional charge of ₹98.19 crore related to new labour code regulations notified by the Indian government in November 2025 [5]