Cummins India Share In Focus: Shares of engine maker Cummins India will be in focus today, June 1, as brokerages remained mixed, citing strong domestic demand push across segments, capex recovery, industrials revival and rising share of high horsepower products, while flagging geopolitics and commodity costs as risks.
Created with AI. Errors are possibleThe company reported a 22.5 per cent year-on-year uptick in its consolidated net profit to Rs 649 crore in the fourth quarter of the financial year 2025-26 against Rs 530 crore posted in the same quarter of the previous fiscal.
The company’s revenue from operations also increased 21.9 per cent YoY to stand at Rs 3,011 crore in Q4 FY26 against Rs 2,470 crore reported in the year-ago period.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reported a YoY growth of 22.3 per cent to Rs 641 crore in the quarter under review as compared to Rs 524 crore in the same quarter of the previous financial year. EBITDA margin declined to 21.3% in Q4 FY26 versus 21.2% in Q4 FY25.
– Profit at Rs 649 crore in Q4 FY26 vs Rs 530 cr in Q4 FY25, up 22.5% YoY
– Revenue at Rs 3,011 crore in Q4 FY26 vs Rs 2,470 crore in Q4 FY25, up 21.9% YoY
– EBITDA at Rs 641 crore in Q4 FY26 vs Rs 524 crore, up 22.3% YoY
– EBITDA margin at 21.3% in Q4 FY26 vs 21.2% in Q4 FY25
– Maintain HOLD with TP of Rs 5,800
– Revenue grew 23% YoY, supported by strong domestic demand across segments.
– EBITDA and PAT exceeded estimates, driven by robust Power Generation performance.
– Power Generation revenue surged 48% YoY, remaining the key growth driver.
– Data centres contributed 30-35% of domestic Power Generation revenue in FY26.
– Strong demand from hyperscalers and colocation players continues supporting order inquiries.
– EBITDA margin remained resilient at 21.3% despite commodity inflation pressures.
– Operating leverage helped offset the impact of rising raw material costs.
– Distribution business delivered healthy growth, supported by aftermarket demand.
– Industrial segment remained weak, impacted by construction and railway sectors.
– Management expects moderate growth in FY27 despite healthy domestic demand.
– Export outlook remains cautious due to ongoing geopolitical uncertainties
– Data centre execution and aftermarket growth are expected to support performance.
HDFC Securities on Cummins India
– Revenue, EBITDA and profit all beat HDFC Securities estimates in Q4
– Powergen data centre pipeline remains robust; improving from colocation providers and hyperscalers
– Exports muted but domestic demand outlook positive; geopolitics and commodity costs flagged as risks
– High localisation provides buffer against cost shocks; some price increases being passed on
– Holding prices and gross margins despite rising competitive intensity in Powergen
– Multiple tailwinds: data centre demand, capex recovery, industrials revival, real estate and manufacturing policy
– Valued at 60x June 2028 estimated EPS vs 54x earlier
– Target price Rs 6,700 vs Rs 5,200 earlier
– Q4 profit at Rs 6.3 billion, up 21% year on year and 15% above Citi estimate
– Hyperscaler-linked genset deliveries accelerating; data centres contributed around 30-35% of powergen revenue in FY26
– Colocation enquiries improving post October 2025; non-data centre powergen also resilient on diverse demand drivers
– Distribution segment set for further tailwinds from June 2026 as engines begin rolling out of standard warranty periods
– Margins resilient due to higher localisation; operating leverage and rising share of high horsepower products support outlook
– Exports remain soft; industrials mixed though medium-term cyclical rebound possible
– FY27 and FY28 profit estimates raised 8% and 14% respectively on higher powergen and distribution growth
Valued at 55x March 2028 estimated EPS vs 50x earlier.
Cummins India Dividend 2026 record date
The record date for the purpose of determining the members eligible to receive the final dividend for the financial year ended March 31, 2026, if declared by the members at the ensuing Annual General Meeting, has been fixed as Friday, July 17, 2026, Cummins India added in the filing.
Cummins India Dividend 2026 payment date
The Final Dividend, as may be approved by the members at the ensuing Annual General Meeting (AGM), shall be paid to the eligible members on or before September 4, 2026, the company said in the regulatory filing.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
