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Informist, Friday, Nov. 7, 2025

By Sunil Raghu and Udita Jaiswal

MUMBAI – Cummins India Ltd. has guided for a double-digit growth in its volumes for 2025-26 (Apr-Mar), even as its exports are seen softening currently, the company's management said Friday. "If our customers move to higher nodes, there could be lower volumes but then that would still be good business for us. So it's very difficult to answer the volume question from a longer period of time," Shveta Arya, managing director, Cummins India, said in an analyst call post September quarter earnings announcement on Thursday.

"And just for this year, we are maintaining double digit growth guidance, and that's the best that I can share at this stage."

Talking about exports, Arya said while the company saw good numbers in exports during the September quarter and was able to execute them well, there was a "little bit of softening" of the order intake from exports at this point in time. "Largely, we do see it in this coming quarter, which is the last quarter of the (calendar) year because of inventory correction in our channel space," Arya said.

Cummins India Ltd. reported robust earnings for the September quarter with its bottom line growth being the highest in six quarters and the top line growth highest in four quarters. The net profit of the diesel and natural gas engine and generator sets manufacturer rose 41.5% on year to INR 6.38 billion in Jul-Sept, beating analysts' estimate of INR 5.45 billion. The company's revenue from operations rose over 27% on year to INR 31.70 billion in the September quarter, higher than analysts' estimate of INR 28.72 billion.

Arya, who was "cautiously optimistic" on exports, pointed out to the geopolitical uncertainties and US tariffs as challenges for exports. The impact of tariffs by the US were limited, as the company's exports to world's largest economy were not significant, she said. Moreover, they were offset by company's diverse geographical portfolio of exports. "Our exports go to largely Africa, Middle East (West Asia), Europe, Asia-Pacific, Latin America...only the US exports are impacted by tariffs, not the others." .

Like in the previous quarter, the company's distribution business during the September quarter benefitted from better penetration and execution in the railways and power generation categories. Though most of the contribution from railways came for its more traditional products, Arya said the new products in the segment have begun registering contribution. Meanwhile, some projects in the construction segment that were affected due to the early arrival of monsoon in the June quarter, continued to remain sluggish due to extended rains in the September quarter.

Further, the demand from data centres, which has been stable since the last few quarters had begun to see a dip from the September quarter. "...there was a lot of data centre project execution, which we do not see in the next half of the year. To the extent, there will be business with data centres but not to this extent," Arya said. Asked whether Cummins would need to import some equipment to service needs of the data centre segment, were it to pick up speed as in the US or China, Arya said Cummins India was "fully ready". In September quarter, the data centres also accounted for nearly 40% of the revenue of its power generation segment. This, she said, would be closer to 25-30% for FY26. Without considering contribution of data centres, the core power generation business clocked 20% year-on-year growth, Arya said.

The company is also optimistic about its revenue growth going forward, saying that it would see a double-digit growth in Oct-Dec and also through FY26.

At 1400 IST, shares of Cummins India traded 0.7% lower at INR 4,285.40 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Vandana Hingorani

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