Escorts Q1 profit seen up 51% at Rs 46 cr: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal has come out with its first quarter (April-June) earnings estimates for the auto sector. The brokerage house expects Escorts to report a 51.3 percent growth quarter-on-quarter (growth of 26.5 percent year-on-year) in net profit at Rs 45.9 crore.

Sales are expected to increase by 34.9 percent Q-o-Q (up 11 percent Y-o-Y) to Rs 1085.3 crore, according to Motilal Oswal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 90.2 percent Q-o-Q (up 29.5 percent Y-o-Y) to Rs 73.8 crore.

Motilal Oswal's report on Escorts
ESC’s tractor volume growth for the quarter came in at 10 percent Y-o-Y to 16,363 units with domestic volume growth of 11.3 percent. The contribution of Powertrac brand is expected to be higher compared to 1QFY16 which will marginally drive down value growth. Construction equipment segment is expected to register robust growth as industry has seen 45 percent growth in April and May 2016.

On the back these developments, we expect ESC to post 11 percent Y-o-Y (35 percent Q-o-Q) revenue growth to Rs 10.8b. We estimate EBITDA margins to expand 100bp Y-o-Y (200bp Q-o-Q) to 6.8 percent, with EBITDA posting 30 percent Y-o-Y growth (90 percent Q-o-Q) to Rs 738m. Resultantly, we expect adjusted PAT to grow 26.5 percent Y-o-Y (51 percent Q-o-Q) to Rs 459m.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.