GST Boost: M&M Escorts Kubota, VST Tiller shares surge up to 11% on rate boost

Shares of tractor manufacturers Escorts Kubota Ltd. and VST Tiller Tractors Ltd. surged up to 11% on Thursday, September 4, after the GST rate on tractors was cut by the GST council on Wednesday night. Shares of VST Tiller Tractors were up 17% in pre-open trading, but cooled off from those levels.The GST rate on tractors was cut to 5% from the earlier 12% slab, which was done away with by the council, while the GST rate on Tractor Tyres and Parts was also cut to 5% from the 18% rate that it attracted earlier.

As much as 87% of Escorts Kubota’s topline in the first quarter came from Agri Machinery products, on which the GST rate has been cut. Tractors are also a significant part of VST Tillers’ portfolio.

Another beneficiary of the GST rate cut on tractors is Mahindra & Mahindra, whose 33% of the overall domestic volumes comes from the tractor segment. The business also contributed 25% to the company’s topline for financial year 2025.Shares of Mahindra & Mahindra are trading 6.5% higher, after having hit an intraday record high of ₹3,550. Escorts Kubota shares are trading 8.7% higher at ₹4,000, but are away from their 52-week high of ₹4,420.

Shares of VST Tillers Tractors are also trading with 4% higher at ₹5,315, while those of Swaraj Engines, which is a subsidiary of Mahindra & Mahindra are also trading with gains of a similar quantum.