Earnings Review
Cummins India Q3 PAT misses estimates on labour code cost
This story was originally published at 21:27 IST on 4 February 2026
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--Cummins India Oct-Dec net profit INR 4.53 bln
--Analysts saw Cummins India Oct-Dec net profit at INR 6.05 bln
--Cummins India Oct-Dec revenue INR 30.55 bln
--Analysts saw Cummins India Oct-Dec revenue at INR 32.06 bln
--Cummins India Oct-Dec net profit INR 4.53 bln vs INR 5.14 bln year ago
--Cummins India Oct-Dec revenue INR 30.55 bln vs INR 30.86 bln year ago
--Cummins India Apr-Dec net profit INR 16.80 bln vs INR 13.84 bln year ago
--Cummins India Apr-Dec revenue INR 91.32 bln vs INR 78.83 bln year ago
--Cummins India to pay INR 20 per share interim dividend
--Cummins India Oct-Dec labour codes implementation cost INR 1.27 bln
--Cummins India interim dividend record date is Feb 11
By Gunjan Rajput
MUMBAI – Cummins India Ltd. missed profit estimates for the December quarter as a one-time labour codes implementation cost weighed on earnings while growth in revenue from operations remained largely flat year-on-year. The company's top line also missed the Street's view.
The diesel and natural gas engine maker's net profit fell nearly 12% on year to INR 4.53 billion, missing analysts' estimate of INR 6.05 billion. The company's revenue from operations slipped about 1% on year to INR 30.55 billion, from INR 30.86 billion a year ago. Analysts had expected the company to post a revenue of INR 32.06 billion.
The company recorded an exceptional charge of INR 1.27 billion during the quarter towards implementation of the four new labour codes notified by the government in November, primarily on account of higher gratuity and long-term compensated absences. The company also announced an interim dividend of INR 20 per equity share, with a record date of Feb. 11.
The company's total expenses declined to INR 24.76 billion for the December quarter, down over 2% on year. The cost of raw material consumed increased over 2%, purchases of traded goods jumped nearly 19%, and finance costs surged more than 80%, while other expenses climbed over 34%.
However, changes in inventories of finished goods, work-in-progress and traded goods declined nearly 90% and employee benefits expenses declined over 14% for the reporting quarter.
Revenue from the company's engines business declined nearly 2% on year to INR 30.06 billion in the December quarter, compared with INR 30.52 billion a year ago. The company's lubes business revenue grew 38% from the year-ago quarter to INR 7.34 billion in the reporting quarter.
For Apr-Dec, the company's net profit rose over 21% on year to INR 16.80 billion. The company's top line for the period rose nearly 16% on year to INR 91.32 billion. The company reported its earnings post-market hours. Wednesday, shares of the company ended at INR 4,202.30 on the National Stock Exchange, up nearly 1%. End
Edited by Akul Nishant Akhoury
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