Cummins India Reports Robust Q2 Performance with 28% Revenue Growth

Cummins India Limited , a leading power solutions provider, has reported a strong financial performance for the second quarter, with significant growth across key segments.

Financial Highlights

Revenue: INR 3,122.00 crores, up 28% year-over-year (YoY)
Domestic Sales: INR 2,577.00 crores, increased by 28% YoY
Exports: INR 545.00 crores, grew by 24% YoY
Profit Before Tax (before exceptional items): INR 839.00 crores, up 41% YoY

Segment-wise Performance

Segment	Revenue (INR Crores)	YoY Growth
Power Generation	1,340.00	49%
Distribution	796.00	21%
Industrial	387.00	-5%

Power Generation Segment

The power generation segment led the growth with a remarkable 49% increase to INR 1,340.00 crores. Notably, approximately 40% of the power generation revenue came from data center projects, highlighting the company's strong position in this rapidly growing sector.

Distribution Business

The distribution business showed robust growth of 21%, reaching INR 796.00 crores. This growth is attributed to the increasing number of assets under maintenance and improved penetration in the market.

Industrial Segment

The industrial segment experienced a slight decline of 5% to INR 387.00 crores. This decrease was primarily due to extended monsoons affecting the construction sector and reduced mining tenders from Coal India.

Export Performance

Exports showed strong growth across both high horsepower and low horsepower ranges:

High Horsepower Exports: INR 279.00 crores, up 40% YoY
Low Horsepower Exports: INR 219.00 crores, increased by 11% YoY

The company reported significant demand from Europe for high horsepower engines and from Europe and the Middle East for low horsepower engines.

Market Dynamics and Outlook

Cummins India expects double-digit revenue growth for the full fiscal year.
The company notes increasing competitive intensity across all power generation segments.
Some softening in export order intake is observed due to inventory corrections in channel markets.
The data center market in India, while growing, is not yet at the pace seen in the U.S., China, or Europe, presenting potential future opportunities.

Management Commentary

Ms. Shveta Arya, Managing Director of Cummins India Limited, stated, "Our strong performance this quarter reflects the robust demand across our key segments, particularly in power generation and data center projects. While we face increasing competition and some challenges in certain sectors, our focus on technology, innovation, and reliability continues to drive our growth."

Cummins India remains cautiously optimistic about the future, citing a stable domestic economic outlook with an estimated GDP growth of around 6.80% for the upcoming fiscal year. However, the company remains watchful of ongoing geopolitical uncertainties and potential short-term fluctuations due to tariff issues.

As Cummins India continues to navigate a competitive landscape, its strong brand value, technological expertise, and focus on reliability position it well to capitalize on growth opportunities in the power solutions market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.76%	+1.38%	+8.54%	+45.68%	+32.30%	+747.48%

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.