CUMMINSIND

robust numbers and strong execution in Q1

is maintaining strong earnings momentum despite a complex macro environment, driven by diversified growth, operational efficiency, and a focus on innovation. The company's investments in capacity expansion, digitalization, and new product development, particularly in clean and hybrid energy systems, are expected to sustain this positive trajectory. Revenue Growth: Cummins India delivered a strong consolidated revenue of ₹2,907 crore in Q1 FY26, marking a significant 26% year-on-year (YoY) increase. This growth was broad-based, with both domestic sales rising 25% YoY and exports surging by 34% YoY. The PowerGen segment was a key contributor, with revenues of ₹1,056 crore driven by strong traction across various horsepower segments. Data centers, which account for 15–20% of PowerGen sales, continue to be a primary growth driver. The industrial business performed well, supported by demand from the railways and construction sectors. The distribution business also saw healthy growth of 19%, thanks to an expanded aftermarket service network. EBITDA grew by 32% YoY to ₹624 crore, with margins expanding by 101 basis points (bps) to 21.5%. Net profit increased by 31% YoY, which includes a one-time gain of ₹44 crore from the sale of a subsidiary. The company has maintained its double-digit revenue growth guidance for FY26, backed by strong domestic demand and clear visibility Current capacity utilization is at 65–70%, providing room for operating leverage to boost profitability in the coming quarters. Cummins India is also investing in capacity expansion and line modernization to meet growing demand. Cummins India is deepening its presence in emerging business areas such as Battery Energy Storage Systems (BESS), rail electrification, and advanced filtration technologies. These new initiatives are currently in the pilot phase but are expected to strengthen the company's market position and support long-term growth.