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--Cummins India: Expect moderate growth across segments in FY27 
--CONTEXT: Comments by Cummins India's mgmt in a post-earnings analyst call 
--Cummins India:Data centre contributed 30-35% domestic power generation sales 
--Cummins India: See orderbook build up in railways, mining in FY27 
--Cummins India: Current overall capacity utilisation around 70% 
--Cummins India: Tried to pass on higher input costs to mkt with a lag 
--Cummins India:No new major capacity expansion plan, to execute earlier ones 

 

By Afra Abubacker and Arya S. Biju

 

NEW DELHI/MUMBAI – Despite robust domestic demand, Cummins India Ltd. expects only moderate growth across its business segments in 2026-27 (Apr-Mar) due to supply chain constraints and higher commodity prices amid disruptions in West Asia. The company hopes that continued strong demand from railways and improving orders from the mining sector will offset some supply challenges. 

 

"The industry has been taking quite a few supply constraints. We are all facing labor shortage issues at our supplier-ends, commodity pricing has hit our suppliers," Shveta Arya, regional leader and managing director, Cummins India, said in a post-earnings analyst call. "So, we are watching all of that. And that is what brings in a little bit of caution, despite the fact that our demand enquiries and order books are robust today," she added. 

 

Cummins India expects robust demand in the domestic market, but flagged a slowdown in some export markets such as West Asia. "Middle East and other markets actually have not grown as much. So, for the last two quarters, it has been Europe and Asia...and those are the places where we continue to see moderate demand," Arya said. 

 

The company's order book in the industrial segment has started to build up with improving orders from the mining sector. "Mining for the last two years, we were not seeing good tenders coming in the model velocity and the tender velocity was lower. But in the last six months, mining has picked up," Arya said. The company said demand from railways would continue to be robust, while orders from the road construction segment are expected to be moderate. 

 

In the power generation segment, the company continues to see strong orders from data centres, commercial reality, and quick-commerce players. The sales in data centres contributed 30-35% to its domestic generation revenue in FY26 and 25% in the March quarter, the company said. 

 

The company stressed that rising commodity prices were challenging and it has been trying to pass on the rise to customers with some lag. "As far as possible, we try, and pass them on. There is always a challenge, because we would have generated orders prior to the period of commodity increase," Arya said. 

 

Cummins India said its current overall capacity utilisation stands at around 70%. The company has not planned any major fresh capacity expansion, but will continue to invest in advancing existing facilities. "For now, no major capital expenditure plan. The continuous capital that we have been investing in the last five years, we will continue to invest back to get more output from each of our installed spaces," Arya said. 

 

The company's standalone net profit for the March quarter grew around 25% on year to INR 6.50 billion, and revenue rose 23% on year to INR 30.11 billion. For FY26, the company's net profit rose over 22% on year to INR 23.30 billion, and revenue was 17% higher on year at INR 121.43 billion. 

 

On Wednesday, the company announced its earnings, and its shares closed 11.2% higher at INR 6,027.50 on the National Stock Exchange. At 1414 IST Friday, the company's shares were 1.8% lower at INR 5,911.50 on the stock exchange. The domestic stock market was closed Thursday for Id-ul-Zuha.  End

 

Edited by Avishek Dutta

 

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