Two tractor stocks: Escorts Kubota shares fall 6%; VST Tillers shares rally 5% after September sales

Shares of Escorts Kubota fell up to 6% to their day’s low of Rs 2,550 on the BSE on Thursday after the company reported a 16.7% year-on-year decline in total tractor sales to 15,214 units in September 2026, compared with 18,267 units a year ago.

Domestic tractor sales in September 2026 were at 14,911 tractors as against 17,803 tractors in the year-ago period. Exports also declined 35% to 303 units, sharply lower from 464 units, the company said in a regulatory filing.

However, September 2026 performance is not comparable with the corresponding period last year, given the high base following the GST rate reduction in September 2025, shift in the festive season to October 2026, patchy monsoon conditions and relatively lower Kharif sowing.


“Looking ahead, festive demand, crop harvesting and improving rural liquidity are expected to support industry volumes. However, the high base effect may continue to moderate industry growth in the near term,” the management said.

VST Tillers September sales update

Shares rose over 5% to Rs 4,615 on the BSE after the company reported a sharp rise in tiller units at 4,520 units, up from 3,002 units in the year-ago period. Tractor sales, however, posted a marginal dip to 430 units from 478 units in the same month last year.

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Total sales for the month under review increased 33% to 5,954 units versus 4,481 in the corresponding month of the previous year

Auto stocks outlook

Domestic brokerage Choice Institutional Equities expects the Q2FY27 outlook to remain positive, supported by strong demand, a favourable year-on-year base in July-September 2026 and festival-led demand in the second half of the quarter.

Narendra Solanki, Head – Fundamental Research, Investment Services, Anand Rathi Share and Stock Brokers, expects domestic momentum to remain strong in the near term, driven by end-user demand and inventory stocking ahead of the festive season. However, he expects some moderation in the second half of FY27 due to the higher base last year.

“Although domestic momentum is expected to remain strong on the back of both end-user demand and inventory stocking ahead of the festival season, there could be some moderation in the second half of FY27 due to the high base last year. Overall, premiumisation, rural recovery and the shift towards EVs should continue to provide momentum to the sector,” Solanki said.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.