In , Cummins India Ltd (Gensets) is outperforming Nifty 500 with +25.0% relative strength. Fundamentals: Average. On a 12-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: CPCB IV+ transition: Full shift as of July 2024
“CPCB IV+ gensets are technologically far more advanced than what CPCB II were. All engines are electronic. It will likely come '27 onwards.”
What: Data Center Pipeline: 25% of Power Gen revenue
“So, for the next 3 to 4 years, we do anticipate positive movement in the data center segment in India.”
What: Gross Margin: 38%
Impact: 300 bps YoY expansion
“Umesh, on the gross margin, you're right, it is definitely at historic highs. And I did explain there is product mix playing there.”
What: Gross Margin at 38%
“Umesh, on the gross margin, you're right, it is definitely at historic highs. And I did explain there is product mix playing there.”
What: Not Given → double-digit growth
“For the domestic growth, I can say that for financial year '27, we will target double-digit growth.”
Earnings deceleration risks from management commentary
Trigger: Unstable economic activity in key markets like Europe and Africa due to external pressures.
Management view: Focusing on domestic growth where confidence is higher.
Monitor: geopolitical
Trigger: Inflationary pressures in key commodities like copper (INR 1,320 per kg).
Management view: Attempting to pass costs to the market with a delay while managing end-customer inflation.
Monitor: commodity
Trigger: Ongoing evaluation of new regulatory impacts on business opportunities.
Management view: Currently evaluating if it could lead to higher business opportunities.
Monitor: regulatory
Key quotes from recent conference calls
“Regarding the sales outlook for the full year 2025-'26, we expect to have double-digit revenue growth over the previous fiscal year. [Previous Full Year Revenue Growth guidance]”
“Our belief is that BEV will become a part of this solution. When that will happen, unlikely to, I'm not able to predict. [Initiative: Battery Energy Storage Systems (BESS)]”
“Exports is another matter altogether where there are a lot of moving pieces, geopolitical conditions not stable, a lot of economic activity impacted. [Risk (geopolitical): MEDIUM]”
“The alternator business does get hugely impacted by copper, and copper has been inching upwards. Recent numbers are around INR1,320 per kg. [Risk (commodity): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
INR 3,006 crores
Why: Revenue was impacted by a lack of data center project execution in Q3 compared to the previous quarter and a decline in Power Gen domestic sales.
Domestic sales saw a slight 2% decline while exports grew marginally by 2% YoY.
Other Highlights
• Gross margins reached a 20-quarter high of approximately 38%.
• Distribution business sales grew 26% YoY to INR 939 crores.
• Onetime management cost true-up of roughly INR 50 crores impacted expenses.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Power Gen Domestic Sales
INR 1,069 Cr
Why: Absence of lumpy data center project execution that occurred in the previous quarter.
Distribution Business Sales
INR 939 Cr
Why: Increased asset base and focus on servicing customers in power gen, railways, and defense.
Industrial Business Sales
INR 464 Cr
Why: Slowdown in road construction and delayed monsoons impacting excavator sales.
High Horsepower Exports
INR 232 Cr
Why: Quarterly volatility and inventory destocking in end markets.
Low Horsepower Exports
INR 186 Cr
Why: General softening in export markets and inventory correction.
Data Center % of Power Gen
25%
Why: Lumpy nature of project execution; Q2 saw 40% contribution due to specific site clearances.
Construction Segment Revenue
INR 129 Cr
Why: Road construction pace was slower than the previous year.
Rail Segment Revenue
INR 104 Cr
Why: Tender-based business nature leads to quarterly fluctuations despite a positive outlook.
Gross Margin Percentage
38%
Why: Product mix and onetime supplier benefits.
Copper Price (Associate Co)
INR 1,320 per kg
Why: Global commodity price inflation.
Forward-looking targets from management for FY 2025-26
double-digit revenue growth
REAFFIRMED
Guidance Changes
FY27 Domestic Growth: Not Given → double-digit growth
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -1% | +19% | Inflection Down |
| PAT (Net Profit) | -13% | +29% | Stable |
| OPM | 21.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Cummins India Ltd's latest quarterly results (Dec 2025) show
Cummins India Ltd's profit is declining with an stable trend.
Cummins India Ltd's revenue growth trend is inflecting downward.
Cummins India Ltd's operating margin is expanding.
Cummins India Ltd's long-term compounding rates
Cummins India Ltd's earnings growth is stable with weakening on a sequential basis.
Cummins India Ltd's trailing twelve month (TTM) performance
Cummins India Ltd appears slightly undervalued based on our fair value analysis.
Cummins India Ltd's current PE ratio is 64.3x.
Cummins India Ltd's current PE is 64.3x.
Cummins India Ltd's price-to-book ratio is 18.9x.
Cummins India Ltd is rated Average with a fundamental score of 43/100. This score is calculated from objective financial metrics
Cummins India Ltd has a debt-to-equity ratio of N/A.
Cummins India Ltd's return ratios over recent years
Cummins India Ltd's operating cash flow is positive (FY2025).
Cummins India Ltd's current dividend yield is 0.95%.
Cummins India Ltd's shareholding pattern (Mar 2026)
Cummins India Ltd's promoter holding has remained stable recently.
Cummins India Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Cummins India Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
Cummins India Ltd has 5 key growth catalysts identified from recent earnings analysis
Cummins India Ltd has 3 key risks worth monitoring
In Q3 FY26, Cummins India Ltd's management highlighted
Cummins India Ltd's management has provided the following forward guidance for FY 2025-26
Cummins India Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Cummins India Ltd may be worth studying
Cummins India Ltd investment thesis summary:
Cummins India Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
