This article first appeared on GuruFocus .
Release Date: November 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Cummins India Ltd ( BOM:500480 ) reported a 28% increase in sales for the quarter, reaching 3,122 crores compared to the same quarter last year.
-
Domestic sales grew by 28%, while exports increased by 24%, indicating strong performance in both markets.
-
Profit before tax before exceptional items rose by 41%, showcasing significant profitability improvement.
-
The power generation segment saw a 49% increase in domestic sales over the previous year, driven by strong demand in data centers.
-
The company expects double-digit revenue growth for the full year 2025-2026, indicating a positive outlook.
Negative Points
-
The industrial business segment experienced a 5% decrease in sales compared to the same quarter last year, impacted by extended monsoons affecting the construction segment.
-
There is a noted softening in export order intake, particularly due to inventory corrections in the channel space.
-
Competitive pressures in the market are affecting pricing strategies, especially in the power generation segment.
-
The company faces challenges in maintaining gross margins due to increasing competitive intensity and fluctuating commodity costs.
-
The data center business, while strong this quarter, is described as lumpy and may not sustain the same level of growth in the near term.
Q & A Highlights
-
Warning! GuruFocus has detected 5 Warning Sign with NSE:FLAIR.
-
Is BOM:500480 fairly valued? Test your thesis with our free DCF calculator.
Q: How do you see the order intake for the India business in the power generation segment, especially in light of the global trends? A: Shweta Aria, Managing Director: The order intake for the India power generation market is diversified and continues steadily quarter on quarter. There is strong demand for backup power across different segments, and this trend is expected to continue.
Q: Can you provide insights into the pricing and volume trajectory in the power generation segment, particularly for medium and low horsepower? A: Shweta Aria, Managing Director: Volumes have returned to pre-CPCB 4 plus levels, and pricing has largely stabilized post-CPCB 4 launch. We saw significant growth in the low horsepower market, with strong execution in the data center segment contributing to high growth this quarter.
Q: What factors contributed to the decline in the industrial segment year-on-year? A: Shweta Aria, Managing Director: The extended monsoon impacted the construction segment significantly, and there were fewer tenders from Coal India in the mining sector, which contributed to the decline.
Q: Can you quantify the growth in the power generation business excluding data centers? A: Shweta Aria, Managing Director: Excluding data centers, the core power generation business grew by 20% compared to the same quarter last year. Data centers contributed approximately 40% of the power generation sales this quarter.
Q: What is the outlook for exports, and do you expect the current trend to continue? A: Shweta Aria, Managing Director: We have seen strong export numbers, particularly in high and low horsepower segments. However, there is some softening in order intake due to inventory corrections in our channel space, which may affect future growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
