More Stories

 

Informist, Thursday, Aug. 6, 2026

 

Please click here to read all liners published on this story

--Cummins India: Seeing strong demand for power generation
--CONTEXT: Comments by Cummins India mgmt in post-earnings investor call
--Cummins India: Making efforts to raise capacity as demand outpaces supply
--Cummins India: Commodity inflation, West Asia crisis impacted Q1 results
--Cummins India: Took price hikes at the start of Jul-Sept
--Cummins India: Will consider further price hikes if needed
--Cummins India: See more opportunities for distribution business
--Cummins India: Seeing decent demand from construction, mining sectors
--Cummins India: See scope to improve margins going ahead
--Cummins India: Seeing good orders and executions from railways
--Cummins India: Can't offset all input cost increases through price hikes
--Cummins India: Data centres accounted for 40% of total power generation Q1

 

By Ashutosh Pati and Astha Oriel

 

MUMBAI/NEW DELHI – Cummins India Ltd. implemented price hikes at the beginning of the September quarter to mitigate the impact of rising commodity costs. The hikes will not fully offset higher input costs, and the company may raise prices further in the coming quarters, the company's management said at a post-earnings conference call with analysts and investors Thursday.

 

There is always a lag between the rise in costs and the actual price realisation, which typically takes a few months, Managing Director Shveta Arya said. "I did mention that there is strong demand and we are constantly in this space of supply catching up with demand. So there are backlogs because of that and hence price realisation takes at least a quarter," Arya said.

 

She added that the best ways of passing on the increase in commodity prices are price hikes and cost control methods and the company is working on both. "And if required, then based on the market absorption, see how we can do another price increase as and when needed and if needed," Arya said.

 

The company is witnessing strong demand for the power generation operations, particularly at the high end. Moreover, the company is "putting in efforts" to increase capacity at those specific nodes as demand is outpacing supply in the market. "... we continue to see strong (demand) in the market, both in the CPCB IV+ (gensets) range and in the higher range, different segments," Arya said.

 

Cummins India remains confident of improving its margins from here onwards as it is able to manage its costs better. Asked if margins can reach historic levels, Arya said, "I will not be able to say whether we will hit historic highs or not, because these are unprecedented times in terms of commodity increases and inflation coming at the same time."

The company is also seeing good demand in the distribution business and expects this to be driven by more service contracts, more penetration, rebuilding its engines, and also selling more through its channels. Cummins India got good orders from the railway sector during the quarter and executed these well too, Arya said. They are also seeing decent demand from the construction and mining sectors.

 

For the June quarter, the company earned revenues of INR 1.48 billion from the construction segment, INR 1.45 billion from railways, INR 520 million from compressors, INR 500 million from the marine segment, and the remaining from defence and mining. In the domestic market, the company earned INR 770 million from low-horsepower equipment sales, INR 2.48 billion from the medium range, INR 1.25 billion from heavy-duty, and the rest from high-horsepower equipment. Data centres accounted for 40% of the overall power generation revenues, up from 23% a year ago, Arya said.

 

The rise in commodity prices and the West Asia war hurt the company's June quarter performance. Its exports during the quarter were mainly to Europe and Asia Pacific. The company Wednesday reported a net profit of INR 5.43 billion for the quarter on revenues of INR 34.26 billion. Thursday, its shares closed 0.7% lower at INR 5,402 on the National Stock Exchange.  End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.