Yeah. Good evening.

On behalf of Anand Rathi Shares and Stock Brokers, I welcome you all for the Escorts Kubota Q3 and nine-month FY26 earnings conference call. I take this opportunity to welcome the management team from Escorts Kubota Limited.

Today, we have with us Mr. Bharat Madan, Whole-time Director and Chief Financial Officer; Mr.

Neeraj Mehra, Chief Officer, Tractor Business Division; Mr. Sanjeev Bajaj, Chief Officer, Construction Equipment Business Division; and Mr.

Prateek Singhal, Investor Relations and ESG. Before we start, I would like to add some of the statements made by the company in today's call will be forward-looking in nature and are subject to risk as outlined in the annual report and investor releases of the company.

Now I hand over to the management for their opening remarks. Thank you.

Thank you, Mumuksh. Good evening, everyone, and thank you all for joining us today.

We hope you had an opportunity to see the financial statement and earning presentation uploaded to the stock exchanges. Let us begin with a few highlights of the company's standalone financial performance for the quarter ended December 2025.

Operating revenue from continuing operation at ₹3,261.4 crores, up by 11.1% YoY. EBITDA at ₹438.7 crores, up by 30.9% YoY, highest-ever quarterly EBITDA.

Now, EBITDA margins at 13.5%, up 203 basis points YoY. PBT from continuing operation before exceptional item at ₹522.7 crores, up by 37.5% YoY.

Net profit from continuing operation came at ₹362.4 crores, up by 24.7% YoY. Please note that this quarter, there was a one-time impact of new Labor Code of ₹52.5 crores.

Adjusted for this, net profit came at ₹401.6 crore, up by 38.3% YoY, highest-ever quarterly profit after tax. EPS including discontinued operation stand at ₹32.93 as compared to ₹29.39 YoY.

The Board of Directors has declared a one-time special dividend of ₹18 per equity share of face value ₹10 on completion of the railway business divestment. On consolidated basis, company financial performance for the quarter ended December 2025 is as follows.

Revenue from continuing operation at ₹3,280.5 crores, up by 11.3% YoY. EBITDA at ₹434.7 crores with a margin of 13.3%, up 196 basis points YoY.

Reported net profit at ₹358.3 crores, up 11.8% YoY, and adjusting for one-time impact from new Labor Code, normalized profit grew by 38.1% YoY. Moving on to the segmental business performance, starting with the tractor business, in Q3 FY26, the total tractor industry, domestic plus export, was at 3.5 lakh tractors, up by 23% as compared to the corresponding quarter last year.

Our total tractor volume was at 36,955 tractors, up by 13.5% as against 32,556 tractors in the corresponding quarter previous year. On the domestic front, the domestic tractor industry reached 3.3 lakh unit in Q3 FY26, registering 23.2% growth YoY.

This momentum was supported by favorable government policies, lower GST rate, healthy agriculture condition including adequate water reservoir levels, and state-level subsidy program that enhanced farmer affordability. While the industry delivered strong growth, our domestic performance were moderated by regional disparity.

The North and the Central market continue to underperform as compared to the other region, other region grew by 34.2%, and limited availability of key models impacted our sales momentum. Our domestic sales were at 35,373 tractor, up by 12% YoY as compared to 31,585 tractor in the corresponding quarter.

Our recent product introduction, strengthening financial partnership, and deeper dealer engagement helped maintain healthy market share for Farmtrac brand in the core geographies. The ProMax series continue to gain traction, with the order inflow now exceeding current supply level, and we are scaling up our production to meet this demand.

In the coming next 6 to 8 months, we will be launching new models and upgrade across all brands to address key product gap. The full market impact of this refreshed product portfolio is expected in the end of FY27, and we are confident that these initiatives will further reinforce our competitive position.

Looking ahead, we expect the current industry momentum to sustain its growth trajectory. Domestic tractor industry is likely to reach a new peak of around 11.5 lakh unit this fiscal year, supported by healthy water reservoir, anticipated robust crop yield, reduced GST rate, higher MSP (minimum support price), and improved terms of trade.

On export front, the tractor industry in Q3 FY26 at 26,600 tractors, up by 20.1% as against 22.1 thousand tractors in the corresponding quarter. Our export volume was at 1,582 tractor, up by approximately 63% as against 971 tractors in the corresponding quarter.

During the quarter, sales to Kubota Global Network account for approximately 68% of the total export. On the non-tractor revenue, comprising of Agri Solution business, engine business, and spare parts in the service part business, in Q3 constitute around 21% of the agri machinery segment revenue, at par with the corresponding quarter, and as against 17% in the sequential quarter.

During the quarter, under Agri Solution business, we have introduced the next-gen of rice transplanter, KA6 and KA8 model, engineered in Japan for precision, efficiency, and comfort. These new model deliver higher productivity, superior planting precision, and enhanced operation comfort, and as we move forward, we remain committed to introduce more advanced product to the market.

Agri machinery product segment revenue came at ₹2,769.6 crore, up by 14.6% as against ₹2,416.6 crore in the corresponding quarter. EBIT margin for the agri machinery business were up by 310 basis points at 13.5% as against 10.4% in the corresponding quarter, led by easing material costs, better operating leverage, and cost control measures.

Coming on to the construction equipment business, in Q3 FY26, industry volume across crane, backhoe loader, mini excavator, and compactor declined by approximately 16% YoY, primarily due to the higher base of last year caused by pre-buying ahead of emission norm change, coupled with extended monsoon and slower mobilization on infrastructure projects. Our total volume for construction equipment business were at 1,716 machines as against 1,989 machines in the corresponding quarter, and up by 49.7% as against 1,146 machine in the sequential quarter.

Construction equipment segment revenue came at ₹489.9 crores as against ₹515.7 crores in the corresponding quarter. EBITDA margin for the quarter ended December 2025 came at 6.6% as against 11% in the corresponding quarter, and was up by 280 basis points as against 3.8% in the sequential quarter.

In our journey to innovation, during the quarter, company expanded its earthmoving and construction equipment portfolio with the launch of Kubota U22-6 mini excavator, offering advanced precision and compact performance for urban and confined area applications. We also showcased Hydra 15 Mining and DLX 75K backhoe loader prototypes, reflecting our focus on rugged mining requirement and next-generation fuel-efficient backhoe loader technology.

Leading the concept lineup, the Hydra 72 cranes represent a major leap in high-end lifting with a new 72-foot boom and enhanced safety system. With this introduction, we reinforce our commitment to engineer excellence and addressing emerging customer need.

It is worthwhile to note that the level of degrowth in the construction equipment segment is coming down gradually for our volume, from around 23.7% in Q1 to 17.8% in Q2, and 13.7% in Q3, and with Jan ending at 3.7%, thus showcasing early sign of stabilization, and we expect this gradual improvement to continue with the timely awarding of key infrastructure projects and better on-ground execution momentum. The Union Budget for 2026-2027 has further reinforced positive commitment for the construction equipment industry, with public capital expenditure rising to 12.2 lakh crore.

Collectively, these factors position the sector for the healthier and more robust demand environment in the coming months and the fiscal. Now I will request the moderator to open the floor for the Q&A.

Hi. Thanks for taking my questions.

Just a couple of questions. Firstly, on the industry outlook, just wanted to hear your thoughts on the lumpiness of the industry, because like you mentioned, there are a lot of these state government subsidies which have come in the last couple of months.

Does this mean that as these subsidies come off, the industry will see some sort of deceleration? Some thoughts on how we think about FY27 and the impact of these state subsidies on the growth.

Hi Gunjan, good evening. This is Neeraj Mehra.

Yes, to a certain extent, you are right that subsidies have played a major role in the growth of the industry, but subsidies are not the only reason. The primary driver over the last three, four months has been the impact of GST 2.0, plus adequate rainfalls and good reservoir levels.

Going forward, yes, the impact will be there if the subsidies come down, but overall, the macroeconomic parameters, as also mentioned by Prateek, are very positive. At this point of time, it is very early to comment on financial year '27, but we see a robust growth in quarter four, and also a very robust growth in quarter

one. Got it.

If you were to sort of just crystal gaze into the FY27 number, is it fair to say that we are not sort of fearing a sudden downturn hitting us in FY27 because there's been so much bunching up? I'm just trying to draw comfort.

Can it be a really down year because we've seen 20% plus growth for industry in fiscal '26?

Gunjan, it'll be very early to comment on the entire financial year now. We'll have a better understanding as we get into quarter one of financial year '27, plus also what the forecast of the rainfalls is.

All those things will play an important part. It is very difficult for me to comment on the overall growth or degrowth for financial year '27 as of now.

Got it. The second question is on the export business.

Can you just talk about how do we see the scale-up now? I know the new capacity plan has just been announced, but if you can just share a bit more color on how do we think about the ramp-up over the next two years, because the new plant is still going to take a couple of years given it's a greenfield one.

Some outlook on that as well.

Hi Gunjan, this is Bharat Madan. I think on export, like you said, it's not totally dependent on the new plant, because even the existing plant also we are making now products which are getting exported, and that probably will continue going forward, too.

The new greenfield plant was more meant for shifting some of the key models from Kubota system in other countries to India. That will take some time, but the normal export which is happening to other countries within Kubota network also, that will continue.

We do expect the momentum should continue in export. Even though the base now is slightly becoming higher, you won't see the similar growth of 50%, 60% what you're seeing now, but still we expect it'll be continue to be double-digit growth in export numbers going forward, even from the existing facility.

Got it. A last question from me on the commodity side.

There's generally been a lot of commodity headwind that we're seeing in the other segments. Can you help us understand where we stand in terms of tractors?

Is a big risk that we need to bear in mind? How is the commodity basket faring for tractors, and if there is any price intervention that's been taken?

See, till December, though we had mostly zero impact, and there's some favorable impact only on the commodity prices, if you look at cumulative nine months of this fiscal. Yes, this quarter, there will be some pressure, because some of the metals like copper and aluminum are getting expensive.

We expect maybe some impact will be there. On tractor, we still don't expect it'll be a significant impact.

On construction equipment, we've seen a quite an impact this quarter. From January itself, I think we've seen the steel price have gone up, which we have taken some price increase in the CE space, but I think the inflation was way more than what we had increased.

There's some correction which we intend to do in the prices in the construction equipment space. On tractor, I think we'll have to wait and watch and see what is the final outcome coming, whether it takes a lag of a quarter to really negotiate and finalize the prices with the supplier, and will also depend on how the competition actually responds to that.

Based on that, we'll take a call. If there's a requirement and the industry also passes on the prices, then we'll also take the similar move.

Got it. No price action taken so far, right?

No, not on our overall portfolio level.

Got it. All right, I'll join back the queue.

Thank you.

Thank you.

Hi sir, thanks for the opportunity. The first question is a slight extension of Gunjan's question.

We have a probability of El Niño happening this year. My question is, are the reservoir levels enough to take us through despite a slower monsoon for the year?

Hi, Ajox. This is Neeraj again this side.

As I had mentioned to Gunjan also, the reservoir levels are better. They will actually help substantially if El Niño actually comes into effect, because levels are relatively better because of the last year's rain.

What impact they will have, actually we'll actually get to know as we get into the end of quarter one, or when the forecasts for rainfalls actually come in.

Okay. Sir.

Fair enough. Sir, secondly, on the mix, we're seeing that the lower HPs, less than 50 HP, kind of picking up in a very small manner.

If you look at the last three years, we've seen that kind of dipping relatively versus the others. Is there anything structurally happening in that space where we can see that inching up further?

Ajox, what has actually happened is, post the reduction of GST on tractors, the liquidity with the farmer has actually increased. The farmers who are earlier looking at a 40 HP or sub-40 HP tractor are now going in for a 45 to 50 HP tractor.

Over the last three to four months, we have actually seen a shift towards 45 to 50 HP segment. That segment in the last four, five months has actually grown.

It is primarily because of the additional liquidity with the farmer. He has an additional play to buy a higher HP tractor with the same amount of money.

Okay. Got it, sir.

That's very helpful. That's it for me.

Thanks.

Hi sir. Thanks for taking my question.

A couple of questions. First, I wanted to check on the construction equipment side.

Our volume has increased sequentially. Is it fair to assume that now the industry is recovering and though there may be some year-on-year decline, but sequentially, we should expect a better fourth quarter and going into Q1?

Hi, Vijay. Sanjeev this side.

Yes, sequentially, we've seen there is a growth or there is a lower dip in the industry quarter-on-quarter, and we believe that the way December month has gone by, we believe that it is a sign of reversal. However, it is yet to be seen.

We believe that quarter four, last year quarter four was low because BS-V products were introduced already. Last year quarter three was bigger than quarter four.

This year it may be quarter four may be better than last year's quarter four. If that happens, maybe slightly positive, then it is a clear sign of reversal of the industry trend.

We are very hopeful. The announcements of the new projects from the governments are there.

It is only now we are waiting for the actual fund flow to happen to the projects and real mobilization on ground, which should be visible in fourth quarter, as well as in the first quarter of next year, before monsoons. We are quite hopeful on that.

Yes.

Okay. Sir, how's the industry exports on the construction equipment side looking after the new norms?

Our norms are now comparable to the European norms. Are we seeing some traction there?

See, we do not have much of an exposure on the products which are exported to Europe or America. Largely, our customer base is confined to Africa, SAARC countries, and Middle East.

We see there is attraction. We see there is a growth, not primarily because of the emission norm changes, because most of these countries, they are still at BS-III level of products.

We make BS-III products for these countries. Going forward, we also intend to introduce certain products which are going to go into larger markets, for example, Southeast Asia, and some of the countries where BS-V products or CEV certified products are being used.

There are new platforms which we are introducing in the due course of time in next few months, which will also give us a foothold in some of the countries where the new emission norms will take a larger share of business.

Okay. Sir, the price increase that happened in April last year, that has been fully bought in by the customers.

We are not seeing any weakness because of the price increase, I expect.

On construction equipment, see, the industry generally introduces price increase from 1st of January every year. Last year, 1st of January, there was a dual increase, one because of the BS-V norms change, and the second because of the annual inflation passed on to the customer.

It took some time. It took couple of quarters for price realization to happen.

By Q3, we realize that the price has almost stabilized in most of the product categories. However, the big dampener is the slow growth.

If the demand picks up, then it will be very easy for the price increases to stabilize quickly. When the demand is slow, of course, it takes longer time for price stabilization.

That's what we've seen over last 6 months, or first two quarters in this year, it has been quite slow.

Thank you, sir. Thank you, and all the best for the upcoming quarters.

Thank you.

Thank you.

Sir. Thank you for the opportunity, and congratulations on a very strong performance.

Sir, my question is again on the FY27 outlook. As we consider positive first half, maybe around 15%, 17% type of growth, and current inventory being one of the lowest level, which should help for next few months, but August onwards, this year base effect will have impact.

As we understand, the monsoon 2026 would be the deciding factor for second half. If we go into the detail in terms of the state-wise number, all the states are going to report a record-high volume performance for FY26, and additionally support for few states like Maharashtra subsidy and all.

In best-case scenario, second half can be flattish type of number. Full-year number would be as low single-digit growth, which would be much lower than the long-term average.

What is your understanding on that, sir? Even if the growth would not be that, then growth would not be very high, maybe not even 6%,

7%. Hi, Mitul.

Neeraj again this side. I think your understanding is actually very, very good.

You have very rightly put in all the factors in terms of growth, in terms of the first 6 months, and post that, a decline on a high base. I tend to agree with you.

I'm being a bit cautious on giving some kind of a figure. What all figures you have actually, to a certain extent, quoted, seem very, very logical and to a certain extent, looking right at this point of time.

Sir, thanks, sir. Sir, second question on the construction equipment side.

As the industry has done reasonably good on sequential basis, YoY, of course, because of the base effect, there was a impact. Still, if you look at a longer period of last many years, 4, 5 years or even going forward, industry is not picking up the way other segments, like recently even commercial vehicle also started doing very strong with 20%, 30% growth.

What are the major challenges, or do you think anytime soon, next 1 year or 2, we'll see similar 20%, 30% growth possible, and base has been much lower over last many years?

Thank you, Mitul. Sanjeev this side.

Yes, the growth which we had seen in financial year '24 was dramatic and it was really encouraging. If you look at 5 years period, I think the CAGR has always been 8% to 9%, and it is expected to grow at about 6% to 7% till FY30.

20% to 30% will be a big ask from the industry. I think the government is doing its part by allocating the capex required for infrastructure development.

Industry is also taking part in accommodating all the changes which are happening, specially on the emission norms and electrification of the products, or whatever technological changes are expected. Industry is also investing into it.

If you look at last 12 months, I think a lot of variables were in place. Say, for example, BS-V was to be introduced, there was a price increase because of BS-V, and there were monsoon, which was extended monsoon for 4, 5 months.

Across the country, there are various places, local elections were also playing a part. Now, considering that all these factors are over for next year, we believe that next year should start with a strong base because these variables will not be there.

If the investments from the government continue, we believe that next year is going to be a turnaround year for construction equipment. Till FY30, it will continue to show the momentum of 6% to 7% CAGR.

Sir, related to this, any color on the subsegments within construction where we see very high growth and where the segment will still face some challenge?

Within construction equipment, our served industry, we do four products. We are into cranes, mini excavators, backhoe loaders, and compactors.

The sectors which are expected to do well will be connected to the roads and railways. Those sectors will definitely have the highest traction.

The sectors where we are not available are the sectors which are related to the construction, say, for example, the concrete equipments or material processing equipments industries will also do well. Within our product range, we believe that cranes will grow faster, and at the same time, mini excavator has already shown signs of growth in this year, and it will continue to grow next year also.

Backhoe loader and compactors will grow at a nominal rate of about 5% to 6%, but cranes and mini excavators will grow much faster.

Thank you and all the best. Thank you.

Thank you.

Thank you. Sir, congrats on the strong results.

Sir, this is to Bharat Madan sir. Sir, Board has consented the investment for the capex for acquiring the land, and also there's a mention about the indicative investment outlay of 22.68 billion.

Just if you can run through what kind of timelines we are planning to go ahead for this capex, sir?

Mumuksh, right now, I think the intent was to finish the acquisition of land this year. Which is why the investment which is approved by the Board right now is only for the land acquisition.

The investment which we have mentioned in the DPR or the detailed project report which has been submitted to UP government is more indicative, and that assumes certain capacities which will be built up right now for tractor and construction equipment plant in the greenfield facility. Say, that will depend on the demand scenario in the market, how the volumes really ramp up.

In the existing facility also, we can take the overall production level a bit higher by 10%, 15%, from the current capacity perspective. It will really depend if the demand is strong, and we expect the volume gain is happening, and then obviously, we will prepone the investment and construction activity in that facility.

Right now, what we indicated to the government is to start this somewhere in 2029-30, the first commercial production. It can get preponed depending on the demand, or it can get postponed also depending on the requirements.

Got it, sir. Also, even for some of the engine products also, spare parts also, would they also start around '29?

Engine for the existing product line, obviously, we will expand, because the existing capacity in the existing Faridabad facility is there for engine, which we can ramp up to take care of the expanded facility for phase one, even for the greenfield. As far as the Kubota engine line is concerned, that is not in this phase one.

That probably will happen in phase two, depending on again the volumes which we do for Kubota products in India.

Got it. Then, sir, for the JV's companies, it will take more time for the margins to further improve with that engine line coming up a little later?

No, I think there's a plan to introduce the Indian platform under Kubota brand name. That will be using Indian engines only.

The idea is to expand the margin by localizing those products, and they're working on the quality and other aspects which can really be suitable for putting that brand, Kubota brand on those products. That is the first priority, because there the volumes will pick up and the margins can be at par with the Indian product line.

Which is what we are trying to do first. I think engine is something which right now is a very limited use for Kubota, because we do only about 10,000 to 12,000 tractors which are using Kubota engine today.

The rest of the products which will get introduced in future will be with the local platform. The numbers will not be really justifying putting additional investment to justify that sort of volume.

Unless, like you said, the export volume really picks up, and then we'll have to use those engines. That will be slightly later, not in phase one.

Got it, sir. In terms of spare sales, how do you see that going up?

We intend to put up a spare part warehouse, which will be a mother warehouse. Right now, we are using a rented facility for spare parts.

You're saying component export or for spare part sales?

Right.

Component export?

Yes, component exports. Yes, sir.

Okay. No, so that is continuing.

Even today, it's happening. I think the intent is to continue with that and ramp it up.

We're adding more products now. I think next year, we'll see a better number coming in from component export side also, because we are putting up a line for transmission for the harvesters now in the existing facility, and that has started production.

From this quarter also, I think the numbers will start looking up. Next year onwards, you'll see a pretty good ramp-up will happen on the component export.

Got it, sir. Sir, finally, just on the construction equipment, we plan to do something 15,000 kind of capacity.

Currently, we have 10,000. Just a little thought over a medium to long term, should we expect construction equipment to be more stronger growth area for the company as there's a more bigger plan to expand there?

No, the idea was the existing facility is not sufficient, actually, space-wise. We are actually using a lot of rented space in the existing facility to do this production today.

The idea is once you set up a greenfield facility, we will probably look at shifting some of this facility in Faridabad to that place, and vacate this facility. The 15,000 will be the total cumulative capacity which will be there at that time.

Some of the facility in Faridabad probably will shut down after this greenfield gets commenced.

Got it, sir. Thank you so much for the answers.

Hi. Am I audible?

We can hear you, Jinesh.

Yeah. Mr.

Madan, my question was on exports, exports of tractor. Given that this FTA has been signed and probably it will come into effect in another year, year and a half, does it now open up new market for us in a material way given existing foothold of Kubota in the European markets?

What else we will need to do to enable this opportunity on the European exports side?

See, Europe we're already exporting, and today the duty on tractor in Europe is zero. There's not going to be any impact of any FTA which we signed with the EU, the bilateral agreement which is signed.

That doesn't have any significant impact on the tractor industry per se. This will impact some of the component export probably for the auto component manufacturers from India.

On tractor, it's not be any significant impact. Yes, if the US deal gets signed off, today a lot of exports are happening from Kubota Japan to US, and from Japan, I think there's a tariff of 15%.

Against that, if India comes at 18%, even with the blended rate of the metal tariff of 50%, the blended rate would be somewhere around 22%, 23%, which in Japan today is about 18%. There's a 4% to 5% delta differential which will come from India, but I think it will make a lot more sense to produce in India at a lower cost and still look at exporting to US market.

That's the potential scenario which in any case Kubota was working on. There's a plan to shift some of the products to India.

I think that will happen once the greenfield facility will be up and running. That's very much in the plan.

Okay. The current Kubota requirement in Europe for small HP tractors is met through India, or only partly met through India and partly through other geographies?

We're supplying from India. They do have some of the manufacturing in Europe also, and they're also importing some other stuff from Thailand and Japan.

What we're supplying from India essentially is being used to compete against many supplies from India and China in those market, because they can't compete with their product portfolio with those supplies where the cost differential is very high. The Indian supplies are helping them in retaining market share in the European market.

Today, I think we're looking at good numbers coming in. I think the order requirements, order book is quite good, I think from Europe today.

We're trying to ramp up the capacities and add more product to the portfolio to continue supplying to them.

Got it. Great.

Thanks, and all the best.

Thank you.

Hi, good evening. Am I audible?

We can hear you.

You all were to publish an updated mid-term business plan as per some previous calls. Any status updates on that?

Right now, I think the parent company is to first adopt the overall mid-term business plans. We expect they will do I think sometime maybe within this quarter, or maybe in the coming meeting.

I think we're not sure, maybe they were supposed to do it in February. Maybe once that adoption happens at their end, then the India plan discussion will start.

We expect maybe within few months, maybe in next quarter, we should be able to come out with the fine plan.

Okay. The reason why I ask is because the new plant has taken, there's been quite a bit of delay.

Just trying to get a sense of where we are today as a company with all the duties and everything. Like you said, hopefully in the next 3 months, we should get an updated mid-term business plan, yes?

That's right.

Thank you so much. All the best.

Thank you.

Good evening, sir. Sir, my question is, which all machines are covered under the CIE scheme, and are the incentives PLI-based or capital subsidies?

You're asking for the construction equipment side?

Yes, sir.

Sanjeev, can you respond to that?

If you're referring to the latest announcements in the budget about PLI, these are primarily export-substitution equipments. Equipments which are currently largely imported, say, for example, tunnel boring machines, where we don't produce in India and it is being imported 100%.

Similarly, very large cranes or crawler cranes, which are primarily imported. Those are the segments which government wants to substitute with the local manufacturing, and that is where the PLI has been announced.

Although the fine print is yet to come, but the direction is wherever we are dependent on imports 100%, those sectors need to be localized. That's the direction, and that does not apply to us because we are not in those segments as of now.

Sir. That's it from my side.

Sir, thanks for follow-up opportunity. Sir, my question is on market share.

If we look at the market share fall and then again we started now recovering, but in overall this scenario of last 2, 2.5 years, Kubota brand has been still struggling despite Maharashtra and South doing much stronger performance in last 1, 1.5 year. Where do you see the exact challenges, and what could be the strategy going forward for that?

You're right, Mitul. Neeraj this side.

Yes, Kubota initially had been struggling, and that struggle, to a certain extent, has reduced with the introduction of certain new products in July and August. I think the market share in terms of Kubota will improve as certain new product introductions are also lined up in the Kubota brand over the next couple of quarters.

We will see a gradual increase in market share in Kubota, I think from H2 onwards. Right.

What is your understanding where is the challenge in terms of, is it competition launching new products or any price aggression by competition, or our cost structure is some issue? Where do you see major problem, which was not the case earlier?

In fact, Kubota was doing much better till last year, and in last 1.5, 2 years, sudden decline has come.

Mitul, major, I think, issue is on the product side, because the product lineup is not very strong there. We had only two models which we're producing for Kubota in India.

There the market potential there was very limited. Second thing is most of these stuff was getting imported, even today like engine, we are still importing.

The cost structure doesn't really justify, the kind of pricing which we have for Kubota products in the market is way higher than probably what competition is offering today locally. These two factors are the key factor which are impacting the overall volume.

Which is why we are very positive once we introduce the Indian platform under that brand name, which is what the other competitors, multinational competition has done, then your profitability will increase, you'll be able to compete much better, and the product portfolio will also expand. Today, it's very restricted portfolio catering to only about 40%, 50% of the market, addressable market.

Once you take it likely to level of 70%, 80%, then you will have much larger opportunity, and then they can also start looking at expanding on a regional basis. Right now, they're very focused on southern and western market, and they're not really very strong in the northern and central.

Our idea is when the portfolio is there, then we can also expand to these markets. That is in the pipeline, so that's why you say it's from this year, I think we'll see the launches will start happening.

Although the Indian platform will still take, I think, about year, year and a half to really come, where you'll get a complete range under that brand name.

Understood, sir. Thanks.

Thank you, ladies and gentlemen, for being present on this call. For any feedback or queries, feel free to write us at [email protected].

Thank you very much, and have a good evening.