After losing market share for a year, this $3 billion tractor giant is on the mend

However, he expressed confidence that the corrective actions taken by the company at the time of losing market share are starting to bear fruit and that market share would be higher in the second half of the current financial year.

Escorts Kubota saw weak performance during the September quarter with its operating profit declining 33 percent from last year to Rs 153 crore while margin dipped to single-digits, witnessing a decline of 540 basis points from the same period last year.

Although Madan believes that margin has hit the bottom for the company, they will take at least 4-5 quarters to return to normal levels.

The company's construction business volumes declined 14.6 percent from last year to 917 units. Madan attributed that to a higher base last year due to pent-up demand. He further added that the infrastructure story remains intact and that the business will see a recovery as construction activity picks up pace post the monsoon.

Brokerages like CLSA and JPMorgan have also highlighted their worries on the company. While the former has maintained its sell rating and slashed its price target to Rs 1,561 from the earlier Rs 1,612, JPMorgan has said that continued market share losses for the company are a big concern.

Shares of Escorts Kubota are trading 2.6 percent lower at Rs 1,938.1.