Cummins India Limited Earnings Summary — Q1 FY2027
Cummins India Delivers Solid Revenue Growth Amid Leadership Transition and Management Caution on Supply Constraints
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 13.8% sequentially in Q1 FY2027.
- Revenue of ₹3,426 Cr is 17.9% higher year-on-year.
- Revenue has compounded at 18.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹609 Cr is 0.9% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 5.6% annualised across the period.
- Operating margin stands at 18.0% in Q1 FY2027.
- Operating margin compressed by 347 bps year-on-year.
- Over the last two years operating margin has contracted by 246 bps.
- PBT margin is 23.0%.
- Expenses grew 23.1% against revenue growth of 17.9%.
- Operating profit of ₹616 Cr is 1.2% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 61/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,426 | 3,011 | 3,055 | 3,170 | 2,907 | 2,470 | 3,096 | 2,509 | 2,316 | 2,319 |
| Expenses | Improving | 2,810 | 2,369 | 2,420 | 2,475 | 2,283 | 1,945 | 2,499 | 2,025 | 1,842 | 1,781 |
| Operating Profit | Stable | 616 | 642 | 634 | 695 | 624 | 525 | 598 | 484 | 473 | 539 |
| Operating Margin | Stable | 18.0% | 21.3% | 20.8% | 21.9% | 21.4% | 21.3% | 19.3% | 19.3% | 20.4% | 23.2% |
| Other Income | Volatile | 227 | 263 | 46 | 181 | 212 | 217 | 168 | 157 | 171 | 186 |
| Interest | Volatile | 4 | 2 | 5 | 3 | 3 | 5 | 3 | 3 | 5 | 6 |
| Depreciation | Stable | 53 | 51 | 50 | 49 | 48 | 46 | 49 | 45 | 44 | 42 |
| Profit Before Tax | Improving | 787 | 852 | 626 | 824 | 785 | 690 | 714 | 594 | 595 | 676 |
| Tax | Improving | 178 | 202 | 139 | 202 | 181 | 161 | 155 | 144 | 132 | 137 |
| Net Profit | Stable | 609 | 649 | 486 | 622 | 604 | 530 | 558 | 449 | 463 | 539 |
| Net Margin | Stable | 17.8% | 21.6% | 15.9% | 19.6% | 20.8% | 21.4% | 18.0% | 17.9% | 20.0% | 23.2% |
Key Takeaways
- Revenue grew 18% YoY to ₹3,375 crore, primarily driven by robust domestic demand in the Engines segment.
- Net profit remained relatively flat YoY at ₹609 crore, impacted by higher cost of materials consumed which rose to ₹2,094 crore from ₹1,776 crore.
- Managing Director Shveta Arya resigned effective August 31, 2026, to pursue external opportunities; the search for a successor is underway.
- Data centers remain a significant driver, contributing approximately 30-35% of overall domestic power generation revenue.
- Management highlighted industrial segment revival in railways and mining, while noting a cyclical downturn in the compressor segment.
- Operating margins faced pressure during the quarter, dropping to 20.65% compared to 24.75% in the prior quarter.
Management Guidance
The company expects moderate growth across segments in FY 2026-27. While domestic demand remains stable and robust, management expressed caution regarding ongoing geopolitical developments, commodity price inflation, and potential labor shortages at supplier levels.
Sentiment Shift
Stable
While revenue growth is strong, the resignation of the MD and a notable QoQ dip in margins and net profit suggest a period of transition and operational caution.
Outlook
The outlook remains positive for domestic infrastructure and data center demand, but is tempered by supply-side constraints and a cautious export environment due to global geopolitical tensions.
From the Annual Report (Key Quotes)
“We remain cautious and continue to closely monitor the potential impact of ongoing geopolitical developments on the broader economy.”
“The inquiry velocity definitely increased quite a lot since October last year, and we continue to see that [in data centers].”
“We have been taking quite a few supply constraints... labor shortage issues at our supplier and commodity pricing has hit our suppliers.”
Official Quarterly Documents
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This summary is AI-generated from Cummins India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.