Cummins India has received a favorable order from the Income Tax Appellate Tribunal (ITAT) dated December 4, 2025, securing substantial tax relief of ₹210.29 crores for Financial Year 2017-18. The tribunal's decision represents a significant victory for the capital goods manufacturer in its ongoing tax dispute with the Income Tax Department.

ITAT Order Details

The Income Tax Appellate Tribunal has granted comprehensive relief to Cummins India, with the order addressing multiple aspects of the tax dispute. The tribunal's decision includes granting relief on adjustments aggregating to ₹210.29 crores, while redirecting ₹13.11 crores to the Assessing Officer for revalidation and upholding a disallowance of ₹0.48 crores.

Company Response and Next Steps

Cummins India has disclosed that it is currently evaluating further action in relation to the disallowance of ₹0.48 crores upheld by the tribunal. The company made this disclosure under Regulation 30 of the SEBI Listing Regulations, demonstrating its commitment to transparent communication with stakeholders.

The company noted a delay in filing the disclosure, explaining that the physically signed order by ITAT has not yet been received. The disclosure was filed based on a copy of the order downloaded from the official ITAT website, with concerned teams analyzing the impact of the order.

Financial Impact and Strategic Significance

This favorable tribunal order provides Cummins India with substantial financial relief and improved cash flow position. The ₹210.29 crore relief amount represents a significant benefit that could enhance the company's financial flexibility and operational capabilities.

The resolution demonstrates Cummins India's effective legal strategy and compliance framework in handling complex tax matters. This development follows the company's earlier communications dated August 14, 2023, and December 19, 2023, indicating a prolonged legal process that has now reached a favorable conclusion for the company.

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.