CUMMINSIND
Large CapCummins India Limited
Industrials
Cummins India Limited manufactures and sells power generation products, engines, and related components, offering aftermarket services. It serves domestic and export markets across Power Gen, Industrial, and Distribution segments, focusing on reliability and advanced technology.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 4/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 52/100margin compression · Rev +22% YoY · PAT +22% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,011 Cr | +21.9% | -1.4% |
| EBITDA | ₹642 Cr | +22.3% | +1.3% |
| Operating margin | 21.0% | +0 bps | +0 bps |
| PAT | ₹649 Cr | +22.4% | +33.5% |
| PAT margin | 21.6% | +9 bps | +564 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q3 FY26 sales broadly stable YoY but declined QoQ. PBT before exceptional items grew 7% YoY, driven by gross margin expansion, but fell 14% QoQ due to one-time expenses and lower sales.
The company reported stable YoY sales but sequential declines in Q3 FY26, impacted by lumpy data center execution and industrial weakness. However, management maintains a positive outlook for domestic growth, driven by infrastructure spend and data center pipeline, supporting the long-term thesis despite short-term volatility and competitive pressures.
Data Center Segment
Data center pipeline is building out very well, with positive movement anticipated for the next 3 to 4 years, supported by tax incentives and new announcements.
Distribution Business
Distribution business growth is broad-based, driven by increasing asset base and focus on servicing customers across power gen, railways, defense, and mining.
Manufacturing & Infrastructure
These segments show good inquiries and are expected to continue growing, supported by government capex announcements.
Residential & Commercial Realty
This segment continues to show very good momentum and inquiries, contributing to domestic growth.
Strong Indian Economy
The Indian economy is doing well, with GDP projections still around 7% for the next financial year, and the FY26 GDP estimate revised upwards to 7.4%.
Government Capex & Infrastructure Focus
The budget is seemingly positive for investments in the infrastructure segment, with significant capex announcements expected to convert into projects.
Data Center Tax Incentives
Government has given huge tax incentives in the budget on data center investments in India, which is a positive development.
Reduced US Tariffs
A recent announcement brought the US tariff percentage down, which the company is evaluating for positive impact.
Geopolitical Instability & Export Uncertainty
Exports are impacted by unstable geopolitical conditions and economic activity affected by different tariff-related equations.
Commodity Price Inflation
Commodities, particularly copper, have been inching upwards (around INR1,320 per kg), posing a challenging situation for passing on costs.
Aggressive Competitive Pricing
Competitive pressures remain very aggressive, especially in the power generation space, impacting pricing and positioning.
Industrial Segment Weakness
Construction activity is down due to slower road construction pace and delayed monsoons in October, impacting excavator sales.
Commodity Price Volatility
Rising copper prices pose a challenge for the associate company, and the ability to pass on these costs to the market with delay is uncertain.
Competitive Intensity
Aggressive pricing and positioning by competitors, especially in power generation, could impact future gross margins despite current stability.
Lumpy Business Execution
The data center business is lumpy, leading to significant quarter-on-quarter variations in Power Gen revenues, as seen in Q3 FY26.
Export Market Volatility
Export demand is choppy across all markets with no clear trend, making future growth difficult to predict due to global economic and geopolitical factors.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are crucial. YoY provides insight into overall business stability and long-term trends, especially for seasonal segments. QoQ highlights sequential momentum, project execution, and the lumpy nature of certain businesses like data centers.
Total Sales
Sales at INR3,006 crores are marginally lower by 1% compared to the same quarter last year and marginally lower by 4% compared to the last quarter.
Domestic Sales
Domestic sales at INR2,535 crores are slightly lower by 2% over last year and lower by 2% over last quarter.
Exports
Exports at INR471 crores are higher by 2% over last year but lower by 14% over last quarter.
Profit Before Tax (before exceptional items)
Profit before tax before exceptional items at INR719 crores is higher by 7% over last year but lower by 14% over last quarter.
FY26 Revenue Growth Outlook
Management expects double-digit revenue growth for FY26 over the previous fiscal year, supported by demand across all key segments.
FY27 Domestic Growth Target
For FY27, the company will target double-digit domestic growth, citing a positive Indian economy and budget for infrastructure.
Diesel Genset Longevity
Diesel power backup is considered one of the most reliable options and will remain a prime backup possibility for customers for the time being.
Battery Energy Storage Systems (BESS)
BESS will become a part of the overall energy solution mix for customers, but sales are slow as customers evaluate integration and economics.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Data Center Order Conversion | Pipeline building well, but sales are lumpy. | Translation of tax incentives and new announcements into real orders and consistent execution over the next 3-4 years. |
| Government Capex Impact | Budget announcements are positive for infrastructure. | Conversion of announced capex into actual projects and subsequent demand for the company's products. |
| Commodity Price Management | Copper prices are inching upwards, gross margins at historic highs. | Ability to pass on rising commodity costs without significantly impacting customer demand or competitive positioning. |
| Industrial Segment Recovery | Construction activity is down, mining tenders are slow. | Pickup in road construction pace, resolution of delayed monsoon impacts, and conversion of mining activity into tenders. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Cummins India anticipates double-digit revenue growth for the full year 2025-26.
"we anticipate having double-digit growth in the full year 2025-'26"
Outcome check: PAT YoY averaged -12.9% across 1 later quarter(s).
CPCB IV+ products, being more technologically advanced, will require better aftermarket support, potentially leading to better opportunities for the distribution business.
"they will require better aftermarket support... it could lead to better opportunities."
Outcome check: Revenue YoY averaged -1.3% across 1 later quarter(s).
The broad-based Powergen growth observed in Q1 FY26 is expected to be sustainable.
"This looks sustainable, yes."
Outcome check: Revenue YoY averaged -1.3% across 1 later quarter(s).
Serialized production of the hotel load converter for the railway segment will start very soon and begin contributing to revenue in the coming quarters.
"The product will be productionized from a serial production perspective very, very soon. ... it will start contributing in the coming quarters."
Outcome check: Revenue YoY averaged -1.3% across 1 later quarter(s).
Trend score and candlestick chart
56NeutralSMA20 +22.8% / mo · near 52W high
Technical chart
CUMMINSINDdaily · 1Y+27.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 55. Wait for confirmation.
- SMA20 rising (~6.1% over last month) — short-term momentum positive.
- RSI(14) at 55 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 8% off 52W high · 45% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Quality contributes 20/20 to the score.
- Balance sheet contributes 11/15 to the score.
Main drags
- Fair-value margin of safety is negative at -47.1%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 17/25; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 25% delivered/partly-delivered outcomes on 4 checked claims, with 3 adverse claim outcomes. It ranks around the 30th percentile of the scored universe and 27th percentile within Industrials. No major sub-score weakness stands out.
Healthy Trust: 4/4 extracted management claims have outcome checks; 25% were fully delivered and 0 were partially delivered. 3 claim(s) were contradicted or failed. Key concern: 3/4 matched management claims were contradicted or failed.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 27th pctile, median 68 · Large: 17th pctile, median 74
4/4 claims checked. Use as directional, not final.
4/4 claims checked · 3 contradicted/failed claims
How to read this Trust Score
Mixed Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.1%.
- ▸12 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸3/4 matched management claims were contradicted or failed.
Intrinsic value
Fundamentals
Valuation
- P/E
- 64.20
- P/B
- 18.33
- EV/EBITDA
- 55.68
- Market Cap
- 155519.00Cr
Profitability
- ROE
- 30.20%
- ROCE
- 39.50%
- ROA
- 20.90%
- Dividend Y
- 1.18%
Growth (CAGR)
- Revenue 5Y
- 23.00%
- EPS 5Y
- 31.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 26.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 216.25×
- Altman Z
- 9.14
- Book Value
- 306.00
Cash Flow
- FCF Yield
- 1.12%
- FCF Positive Y
- 12/5
- OCF
- 1734.00 Cr
- EPS TTM
- 85.20
Shareholding
- Promoter Hold
- 51.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 82%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.