Cummins India (500480) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 sales reached INR 3,375 crore, up 18% year-over-year and 14% sequentially, marking the highest-ever quarterly top line.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, along with the statutory auditor's limited review report.

• Ms. Shveta Arya resigned as Managing Director and Director, effective August 31, 2026, to pursue external opportunities.

• Profit before tax (before exceptional items) was INR 721 crore, down 0.7% YoY and 12% sequentially, impacted by higher commodity and freight costs.

• Strong demand persisted across key end markets, especially power generation and data centers, despite supply constraints.

Financial highlights

• Consolidated revenue from operations for Q1 FY27 was ₹3,374.93 crore, up from ₹2,858.71 crore in Q1 FY26.

• Consolidated profit after tax for Q1 FY27 was ₹609.30 crore, compared to ₹603.90 crore in Q1 FY26.

• Power generation domestic sales surged 35% YoY to INR 1,424 crore; data centers contributed 40% of this segment's revenue.

• High horsepower exports grew 16% YoY to INR 296 crore; low horsepower exports declined 20% YoY to INR 180 crore.

• Basic and diluted EPS (consolidated) for Q1 FY27 was ₹21.98, compared to ₹21.79 in Q1 FY26.

Outlook and guidance

• Management expects strong demand in domestic power generation, data centers, and railways to continue.

• Inflation, commodity price volatility, and supply chain disruptions are expected to persist, impacting margins.

• Price increases have been implemented in Q2 to offset cost inflation, with further adjustments possible depending on market acceptance.

• The company continues to monitor regulatory developments, especially regarding new labor codes, and will adjust accounting as needed.