This article first appeared on GuruFocus .
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Total Sales:3,006 crores, marginally lower by 1% year-over-year and 4% quarter-over-quarter.
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Domestic Sales:2,535 crores, lower by 2% year-over-year and quarter-over-quarter.
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Export Sales:471 crores, higher by 2% year-over-year but lower by 14% quarter-over-quarter.
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Profit Before Tax (Before Exceptional Items):719 crores, higher by 7% year-over-year but lower by 14% quarter-over-quarter.
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Profit Before Tax (After Exceptional Items):593 crores, lower by 12% year-over-year and 29% quarter-over-quarter.
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Domestic Gen Sales:1,069 crores, 16% decrease year-over-year and 20% decrease quarter-over-quarter.
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Distribution Business Sales:939 crores, 26% increase year-over-year and 18% increase quarter-over-quarter.
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Industrial Business Sales:464 crores, 9% decrease year-over-year and 20% increase quarter-over-quarter.
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High Horsepower Exports:232 crores, 15% increase year-over-year and 17% decrease quarter-over-quarter.
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Low Horsepower Exports:186 crores, 14% decrease year-over-year and 15% decrease quarter-over-quarter.
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Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cummins India Ltd ( BOM:500480 ) reported a 7% increase in profit before tax before exceptional items, indicating strong operational performance.
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The company expects double-digit revenue growth for the financial year 2026, driven by demand across key segments.
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Distribution business sales increased by 26% over the previous year, showcasing robust growth in this segment.
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High horsepower exports saw a 15% increase over the previous year, reflecting strong demand in this category.
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The company is optimistic about the domestic market, with expectations of continued growth supported by government infrastructure spending.
Negative Points
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Overall sales were marginally lower by 1% compared to the same quarter last year, indicating a slight decline in revenue.
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Domestic sales decreased by 2%, reflecting challenges in the local market.
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Profit before tax after exceptional items fell by 12%, highlighting the impact of exceptional costs on profitability.
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Exports were lower by 14% compared to the previous quarter, indicating volatility in international markets.
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The power generation segment experienced a 16% decrease in domestic sales over the previous year, showing weakness in this area.
Q & A Highlights
Q: Can you provide insights on the volume growth for the past quarter and the first nine months of FY26? How much of the top-line growth is driven by volumes versus pricing? A: Our revenue is a mix of power generation, industrial business, and distribution. There is volume growth in certain areas of power generation and distribution, along with pricing impacts. It's a combination of both volume and pricing, but it's challenging to separate them segment by segment. - Shveta Arya, Managing Director
Q: What is the outlook for FY27 in terms of growth? Can we expect double-digit growth next year as well? A: For FY27, we are targeting double-digit growth domestically, supported by a positive economic outlook and infrastructure investments. However, exports are uncertain due to geopolitical conditions and economic factors. - Shveta Arya, Managing Director
Q: Could you elaborate on the decline in power generation revenues this quarter and the impact of data centers on this segment? A: The decline in power generation revenues is primarily due to the absence of data center execution this quarter, which was significant in the previous quarter. The core power generation business continues to grow steadily. - Shveta Arya, Managing Director
Q: How is the data center pipeline developing, and what is its contribution to your business? A: The data center pipeline is building well, with recent tax incentives expected to have a positive impact. Data centers contribute around 25% of our power generation revenue, but this can vary as it is a lumpy business. - Shveta Arya, Managing Director
Q: What is driving the strong performance in the distribution business, and how sustainable is this growth? A: The distribution business has been focusing on increasing its asset base and customer service, which has led to broad-based growth across segments like power generation, railways, and defense. This strategy aligns with our brand promise of reliability. - Shveta Arya, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
