Cummins India has received board approval to acquire an 8.78% stake in Clean Max for ₹27.00 million, marking a significant strategic investment in the renewable energy sector.

Investment Details

The board of Cummins India has formally approved this acquisition, which represents the company's entry into the clean energy space through its investment in Clean Max. The transaction involves purchasing an 8.78% equity stake for a total consideration of ₹27.00 million.

Strategic Significance

This investment aligns with the broader industry trend toward sustainable energy solutions and demonstrates Cummins India's commitment to diversifying its business portfolio. The acquisition of a stake in Clean Max positions the company to participate in the growing renewable energy market while maintaining its core engineering and manufacturing capabilities.

The move reflects Cummins India's strategic vision to expand beyond traditional engine manufacturing and explore opportunities in the clean energy sector, which has been experiencing significant growth in the Indian market.

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

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.