Cummins India slips after muted Q1 outcome

Cummins India fell 1% to Rs 5,385.60 after the company reported largely flat earnings for the quarter ended 30 June 2026.

On a consolidated basis, the company's profit after tax increased 0.9% YoY but declined 6.2% QoQ to Rs 609.30 crore in Q1 FY27.

Net sales rose 17.9% YoY and 13.8% QoQ to Rs 3,426.01 crore in the quarter ended 30 June 2026. Total income increased 17.2% YoY and 12.9% QoQ to Rs 3,563.35 crore.

Profit before tax stood at Rs 786.84 crore in Q1 FY27, up 0.3% YoY but down 7.6% QoQ.

On the cost front, total expenditure increased 22.8% YoY and 18.3% QoQ to Rs 2,862.44 crore. Raw material consumption rose 17.9% YoY to Rs 2,094.41 crore, while employee expenses increased 16.9% YoY to Rs 233.12 crore. Interest costs rose 47.2% YoY to Rs 3.90 crore, while depreciation increased 9.7% YoY to Rs 52.59 crore.

On a standalone basis, total sales increased 18% YoY and 14% QoQ to Rs 3,375 crore. Domestic sales rose 22% YoY and 14% QoQ to Rs 2,854 crore, while export sales were flat YoY and increased 16% sequentially to Rs 521 crore. Standalone profit before tax, before exceptional items, stood at Rs 721 crore with a margin of 21.4%, down 0.7 percentage points YoY and 12% QoQ. Profit after tax came in at Rs 543 crore, with a net profit margin of 16.1%.

Managing director Shveta Arya said the company started the new fiscal year on a steady note, supported by robust domestic demand and healthy order execution. She said exports remained resilient despite geopolitical developments, although higher commodity costs and inflationary pressures weighed on margins. The company remains focused on operational efficiency and cost discipline while maintaining dependable service for customers.

Looking ahead, Cummins India expects business momentum to remain steady across its key markets, although inflationary pressures and supply chain constraints are likely to persist. The company said it will continue to focus on disciplined execution, prudent capital deployment, cost management and operational efficiencies, supported by a strong balance sheet and healthy liquidity.

Cummins India manufactures power generation systems, engines and related components, serving domestic and export markets through its power generation, aftermarket and export businesses.

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