Escorts Kubota GST Demand: ₹2.44 Crore Tax Order, ₹1.71 Crore Interest and ₹24.44 Lakh Penalty

Escorts Kubota Limited has received a GST order from Chennai authorities confirming a ₹2.44 crore tax demand, along with ₹1.71 crore interest and a ₹24.44 lakh penalty for FY23. The matter relates to discrepancies in input tax credit reconciliation.

The order was issued on August 21, 2026, and the company has stated that it plans to appeal the order before the appellate authority.

Escorts Kubota GST Demand: Key Details

The regulatory order under Section 73 of the GST Act, 2017, includes the following liabilities:

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Why is Escorts Kubota facing GST demand?

The GST demand relates to input tax credit reconciliation for FY23. The company has disputed the order and intends to file an appeal before the appropriate appellate authority.

The interest amount of ₹1.71 crore is significant compared with the principal tax demand of ₹2.44 crore, while the penalty stands at ₹24.44 lakh.

Escorts Kubota Financial Performance

Based on the financial data provided, Escorts Kubota reported consolidated revenue of ₹3,415 crore in the June 2026 quarter, compared with ₹3,090 crore in the March 2026 quarter. EBITDA stood at ₹562 crore, while net profit was ₹386 crore.

The company had ₹15,799 crore in total assets, ₹12,369 crore in total equity and ₹3,096 crore in current liabilities as of 2026. Its debt-to-equity ratio stood at 0.01, while return on equity was 11.05%.

The company generated ₹1,381 crore in operating cash flow in 2026, while net cash flow stood at -₹166 crore.

Escorts Kubota Stock Outlook

The GST order is a negative company-specific development, but the immediate financial impact needs to be assessed in the context of the company's overall financial position and its planned appeal.

Investors will likely track the outcome of the appeal, future regulatory developments and the company's operating performance. Separately, Escorts Kubota's ₹2,000 crore greenfield manufacturing facility in Uttar Pradesh remains an important long-term capacity expansion initiative.

Escorts Kubota Stock Performance

Escorts Kubota shares were trading at around ₹3,086.60, down 0.18% during the session. The stock's day range was ₹3,052 to ₹3,112.90, while its 52-week range stood between ₹2,700 and ₹4,180.

The stock has delivered mixed returns across different periods, gaining 3.53% over one month but remaining down 9.69% over six months and 14.84% over one year. Over five years, Escorts Kubota has gained 158.49%.