Will Cummins India Sustain Its Margin Expansion and Domestic Growth Momentum?
About Cummins India
Cummins India is a leading manufacturer of diesel and natural gas engines and power solutions. Its products serve infrastructure, data centers, and industrial segments with a focus on energy efficiency and technology innovation.
Q2 FY26 performance surpassed analyst expectations with revenue growth of 27% YoY and EBITDA margin expansion to 22%.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,230 Cr | +27% | +9% |
| EBITDA | ₹490 Cr | +20% | +8% |
| EBITDA Margin | 22% | +240 bps | +90 bps |
| PAT | ₹370 Cr | +24% | +10% |
Revenue ₹2,230 Cr — boosted by power gen and industrial demand.
EBITDA ₹490 Cr — benefited from operating leverage and cost efficiency.
PAT ₹370 Cr — reflects robust execution and pricing discipline.
Track industrial momentum using Nifty Swing Tip.
Peer Comparison
| Company | EBITDA Margin | Key Segment |
|---|---|---|
| Cummins India | 22% | Power Generation |
| Kirloskar Engines | 16% | Industrial Engines |
| Greaves Cotton | 12% | Automotive & Power |
Strengths & Weaknesses
Strengths
|
Weaknesses
|
Opportunities & Threats
|
|
Valuation & Investment View
- Short-term: Bullish momentum post Jefferies double upgrade.
- Medium-term: Margin trajectory favourable on demand strength.
- Long-term: Structural growth from data center and infra segments
- Short-term: Bullish momentum post Jefferies double upgrade.
- Medium-term: Margin trajectory favourable on demand strength.
- Long-term: Structural growth from data center and infra segments.
Track evolving industrial setups using BankNifty Swing Tip.
