Cummins India Limited has withheld the payment of its final dividend for FY26 for shareholders whose folios are not KYC compliant. The company declared a final dividend of ₹46 per equity share of face value ₹2 each in its annual general meeting held on August 6, 2026. However, payouts are being held back for investors who have failed to update their bank account details or other KYC information with their Registrar and Share Transfer Agent (RTA) or Depository Participants (DPs).

Regulatory Compliance and Withholding

The withholding action is taken pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also aligns with the SEBI Master Circular SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 dated May 7, 2024, and the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2025, notified on November 19, 2025.

Under these regulations, the payment of dividends through any mode other than electronic mode has been discontinued. Consequently, shareholders must ensure their folios are updated with complete KYC details, including valid bank account information, at all times. Dividend payments are permitted only through electronic mode for KYC-compliant folios.

Steps for Shareholders

Cummins India has sent individual communications to affected shareholders informing them of their non-compliant status. To receive the withheld dividend, shareholders must update their details as follows:

• Physical Shareholders: Submit duly filled and signed Form ISR-1 and ISR-2 along with self-attested supporting documents to the RTA, MUFG Intime India Private Limited (formerly Link Intime India Private Limited).
• Demat Shareholders: Update KYC details directly with their respective Depository Participants (DPs).

Shareholders can download the necessary KYC forms from the RTA’s website. Once the KYC details are successfully updated, shareholders may submit a request to the RTA for the release of the unpaid dividend through electronic mode.

What the Numbers Show

The dividend amount of ₹46 per share represents a significant payout relative to the face value of ₹2. The strict enforcement of electronic-only payments highlights the regulatory shift towards digital compliance, where administrative lapses in KYC updates directly impact shareholder liquidity access rather than just corporate governance metrics.

Cummins has outperformed the market over the past five years by 9.42% on an annualized basis, producing an average annual return of 20.84%. The company currently commands a market capitalization of $84.06 billion.

Five-Year Investment Performance

An investor who purchased $100 of Cummins stock five years ago would see that position valued at $258.61 today. This calculation is based on a share price of $608.37 at the time of writing.

Market Context

The performance highlights the impact of compounded returns on capital growth over extended periods. Cummins’s ability to generate returns significantly above the market average underscores its strength in delivering value to shareholders over this specific timeframe.