Cummins India (500480) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2025-26 sales were INR 3,006 crore, marginally down 1% year-over-year and 4% sequentially.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• Interim dividend of Rs. 20 per equity share declared for FY 2025-26, with record date set for February 11, 2026.

• Management expects double-digit revenue growth for FY 2026 and targets similar growth for FY 2027 domestically.

Financial highlights

• Consolidated revenue from operations for the quarter ended December 31, 2025: Rs. 3,006.24 crore; nine months: Rs. 8,986.53 crore.

• Domestic sales declined 2% YoY to INR 2,535 crore; exports rose 2% YoY to INR 471 crore.

• Consolidated profit after tax for the quarter: Rs. 486.06 crore; nine months: Rs. 1,712.29 crore.

• Distribution business sales rose 26% YoY and 18% sequentially to INR 939 crore.

• Gross margin reached a 20-quarter high of nearly 38%, driven by product mix, cost improvements, and one-time supplier benefits.

Outlook and guidance

• Double-digit revenue growth expected for FY 2026, supported by demand across key segments.

• FY 2027 domestic growth also targeted at double digits, with positive outlook on infrastructure and manufacturing.

• Export outlook remains uncertain due to geopolitical and tariff-related factors.

• Board continues to monitor regulatory updates and will recognize additional impacts from new labor codes in subsequent periods.