Cummins India Eyes 21-22% EBITDA Margin for FY26-27, Navigates Global Challenges

Cummins India , a leading power solutions provider, has set its sights on maintaining an EBITDA margin range of 21-22% for the fiscal years 2026 and 2027, following its performance in Q2FY26. The company's strategic outlook and recent financial results indicate resilience amidst global economic uncertainties.

Financial Performance and Targets

Cummins India reported an EBITDA margin of 21.9% in Q2FY26. Managing Director Shveta Arya emphasized that sustaining these margins would depend on several key factors:

Factor	Impact on Margins
Volume levels	Critical
Product mix	Significant
Cost reduction efforts	Essential

Industrial Business Outlook

The company remains optimistic about its industrial segment, projecting double-digit growth. This outlook is contingent on the continuation of government infrastructure spending, which has been a key driver for the sector.

Export Performance and Challenges

Cummins India's export business showed growth, with a 24% year-on-year increase in Q2FY26. However, the company faces several headwinds in the global market:

Geopolitical conditions
Credit issues
Inventory buildup in distribution channels
End-of-calendar-year corrections by global distributors
Uncertainty around tariffs

These factors could potentially impact the company's export performance in the coming quarters.

Investor Relations Update

Cummins India has enhanced its investor relations efforts. According to the LODR (Listing Obligations and Disclosure Requirements) data, the company conducted a Q2 and H1 FY 2025-26 Results Conference Call on November 07, 2025. The audio recording of this call has been made available on the company's website, demonstrating a commitment to transparency and open communication with investors and analysts.

Conclusion

While Cummins India showcases strong financial performance and margin targets, it remains cautious about global market dynamics. The company's focus on maintaining healthy margins, coupled with its proactive investor communication, indicates a strategic approach to navigating both domestic opportunities and international challenges in the power solutions sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.67%	+3.36%	+4.52%	+50.51%	+28.67%	+674.36%

Cummins has announced its financial results for the quarter ended September 30, showcasing strong growth across key metrics.

Revenue Surge

The company reported total sales of ₹3,122.00 crore for the quarter, marking a significant 28% increase compared to the same quarter last year. This growth was driven by strong performance in both domestic and export markets.

Market Performance

Domestic Sales: Reached ₹2,577.00 crore, up by 28% year-over-year and 10% quarter-on-quarter.
Export Sales: Stood at ₹545.00 crore, showing a 24% year-over-year increase and a 4% rise from the previous quarter.

Profitability Boost

Cummins India witnessed substantial improvements in its profitability:

Profit Before Tax: ₹839.00 crore, up by 41% year-over-year and 16% quarter-on-quarter.
Profit After Tax: ₹638.00 crore, representing a 42% year-over-year increase and an 8% quarter-on-quarter growth.

Financial Highlights

Metric	Q3 (₹ Crore)	YoY Growth	QoQ Growth
Total Sales	3,122.00	28%	9%
Domestic Sales	2,577.00	28%	10%
Export Sales	545.00	24%	4%
Profit Before Tax	839.00	41%	16%
Profit After Tax	638.00	42%	8%

Management Commentary

Shveta Arya, Managing Director of Cummins India Limited, expressed satisfaction with the company's performance: "I am delighted to announce that Cummins India Limited has delivered a record quarterly revenue, driven by steady demand across markets and improved order execution. We have also achieved a record quarterly profit, supported by volume leverage and operational efficiencies."

Economic Outlook

The company remains optimistic about the Indian economy's growth trajectory, citing:

Strong macro-economic indicators
Robust trade activities
Improved liquidity post GST 2.0 implementation
Stable fiscal policies backed by low inflation

The Indian economy is projected to achieve a 6.8% GDP growth, according to the company's assessment.

Future Outlook

Cummins India maintains a cautiously optimistic stance on growth prospects in both domestic and international markets. The company highlighted its:

Diversified portfolio aligned with evolving emission norms
Continued collaboration with trade partners
Exploration of new opportunities
Focus on operational efficiencies and cost management
Commitment to customer satisfaction and shareholder value creation

Challenges

While the overall outlook is positive, Cummins India acknowledges potential headwinds in the export market due to ongoing geopolitical uncertainties across regions, which may impact global trade flows and demand.

The company's strong foundation, including reliable technology, skilled talent, a trusted brand, diverse products, robust manufacturing capabilities, and an extensive distribution and service network, positions it well to navigate these challenges and serve customers efficiently.

This financial report underscores Cummins India's resilience and growth potential in a dynamic market environment, reflecting its strong market position and strategic initiatives.