May Auto Sales: Escorts Kubota shares decline despite 19% growth; Here are the near-term headwinds

Shares of Escorts Kubota Ltd. gave up early gains to trade with losses on Monday, June 1, after the tractor-maker's total sales in May increased 19% to 12,310 units from 10,354 units in the previous year.

Of these, its domestic sales increased 22.5% to 11,887 units in May compared to 9,703 units in the previous year.

However, tractor exports declined 35% to 423 units from 651 units in the year-ago period.

Escorts Kubota said the near-term headwinds include rising input costs, particularly fertilisers, softer prices for select cash crops and evolving geopolitical developments, which could affect customer affordability and input availability ahead of the kharif season.

While emerging El Nino conditions may influence rainfall distribution, strong reservoir levels and resilient underlying demand provide a supportive base, Escorts Kubota said. Overall, the rural fundamentals remain silent and monsoon progression and input cost trends remain key monitorables, the company said in a statement.

Shares of Escorts Kubota are trading over 1.1% lower on Monday at ₹2,830. The stock is down 12% for the last one month, extending their 2026 losses to 26%.

Also Read: May Auto Sales: Mahindra & Mahindra beats estimates across segments; Here's why the stock is down