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Informist, Monday, May 25, 2026

 

By Afra Abubacker

 

NEW DELHI – Cummins India Ltd. is expected to report a moderate rise in net profit for the March quarter, supported by strong domestic demand for power generation. However, the earnings are seen softening on a sequential basis amid margin pressures and subdued exports, according to analysts.

 

The engine and power generation equipment maker's standalone net profit for Jan-Mar is expected to rise over 7% on year, but decline nearly 4% on quarter to INR 5.59 billion, according to the average of estimates from nine brokerages. The highest estimate for the net profit is INR 6.23 billion by Kotak Securities, and the lowest is INR 4.91 billion by BK Security.

 

The company's revenue is expected to rise 16% on year, but decline nearly 7% on quarter to INR 28.51 billion, according to the average of estimates. The highest estimate for revenue is INR 29.92 billion by JM Financial Services Pvt. Ltd. and the lowest is INR 27.03 billion by Prabhudas Lilladher Pvt. Ltd.

 

Brokerages expect continued domestic demand in segments such as power generation, including data centres, to support the earnings. However, exports are likely to decline marginally on year due to a high base, while domestic industrial and distribution segments are expected to post a moderate growth, Nomura said.

 

According to brokerages, execution momentum across the capital goods sector has been good in domestic markets, supported by demand from transmission, infrastructure, and energy transmission segments. At the same time, companies with exposure to West Asia are facing headwinds due to supply chain disruptions and slower order finalisation, Prabhudas Lilladher said.

 

Across the sector, margins are expected to be under pressure due to higher raw material costs, intensifying competition, and execution mix, Nomura said.

 

Cummins India's earnings before interest, tax, depreciation, and amortisation for the March quarter is seen at INR 5.91 billion, according to the average of eight brokerage estimates. The highest estimate for EBITDA is INR 6.24 billion by JM Financial and lowest estimate at INR 5.63 billion is by Motilal Oswal Financial Services Ltd. 

 

Cummins India will announce its Jan-Mar earnings on Wednesday. Analysts will track management comments on export demand, domestic order inflows, and outlook on demand from infrastructure and power generation segments.

 

Of the nine research reports on the company available with Informist, five have a ‘buy' recommendation on the stock, with an average target price of INR 5,099, down 2.5% the current market price. Monday, the company's shares closed at INR 5,376 on the National Stock Exchange, up 0.4% from the previous close. Since reporting its December quarter earnings, the company's shares have risen over 22%.

 

Following are the Jan-Mar earnings estimates, in INR billion, for Cummins India from nine brokerages, in descending order of net profit estimates:

 

Brokerages	Net Sales	Net Profit	EBITDA
Kotak Securities Ltd	28.36	6.23	5.91
JM Financial Institutional Securities Pvt Ltd	29.92	5.92	6.24
HDFC Securities Ltd	28.20	5.70	5.90
Nomura Equity Research	28.89	5.650	6.02
Prabhudas Lilladher Pvt Ltd	27.03	5.57	5.74
Nuvama Wealth Management Ltd	29.63	5.53	6.14
Elara Securities (India) Pvt Ltd	28.00	5.50	5.70
Motilal Oswal Financial Services Ltd	28.52	5.28	5.63
BK security	28.03	4.91
Average	28.51	5.59	5.91

 

End

 

Edited by Vandana Hingorani

 

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