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Informist, Wednesday, May 27, 2026

By Arya S. Biju

MUMBAI – Cummins India Ltd. reported better-than-expected earnings for the March quarter, with both bottom line and top line beating the Street's view by a wide margin. Robust growth across verticals and slightly faster growth in total sales than in costs helped Cummins India report a double-digit on-year rise in its net profit for the reporting quarter, compared to a double-digit fall in the previous quarter. 

The engine and power generation equipment maker's standalone net profit for the March quarter grew around 25% on year to INR 6.50 billion, beating analysts' expectation of INR 5.59 billion. However, the on-year growth was the slowest in 2025-26 (Apr-Mar). Sequentially, the net profit grew over 43%, marking the sharpest rise in about 5 years.   

The company's revenue from operations for the quarter grew 23% on-year to INR 30.11 billion, beating analysts' expectation of INR 28.51 billion. The on-year revenue growth was also the slowest in FY26. Sequentially, the company's top line fell by over 1%.

Shares of the company rose sharply after the earnings announcement. Wednesday, the company's shares ended 11.2% higher at INR 6,027.50 on the National Stock Exchange.  

Sales from the company's engines vertical grew over 22% on year to INR 29.63 billion in the March quarter. Revenue from the company's lubes segment jumped over 45% on year to INR 9.21 billion. 

Cummins India's domestic sales for the quarter grew 30% on year to INR 25.13 billion, but fell 1% sequentially. Its exports during the quarter fell 6% on year and 5% sequentially to INR 4.50 billion. 

The company's total expenditure grew around 22% on year to INR 24.23 billion for the March quarter, slightly below the 23% rise in total sales. The company's largest expense, raw material cost, grew over 19% on year to INR 17.08 billion and other expenses increased around 9% at INR 2.47 billion. Employee benefits expenses and costs related to the purchase of stock-in-trade grew 18% and around 16% to INR 1.96 billion and INR 1.98 billion, respectively. 

For FY26, the company reported a net profit of INR 23.30 billion, up over 22% on year. Its revenue for the financial year rose over 17% to INR 121.43 billion. Domestic sales for the year increased 19% to INR 99.61 billion, while exports rose 12% to INR 19.89 billion. "Our ability to leverage a globally integrated supply chain and agile operating framework has enabled us to effectively meet strong customer demand in both the domestic and export markets," Shveta Arya, managing director of Cummins India, said in a press release. 

Even though rising crude oil and commodity prices, along with persistent global geopolitical uncertainties, remain as challenges, the country's macroeconomic environment continues to demonstrate resilience, supported by government initiatives and consistent economic activity, Arya said. Domestic demand remains steady, supported by continued investments and capital expenditure across key sectors. "While the export environment faces some near-term pressures, the company is hopeful about improved stability and growth in the medium to long term," she added.

The company's board approved a final dividend of INR 46 per share for FY26 and set Jul. 17 as the record date.  End

Edited by Saji George Titus

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