Capital Goods · NSE: CUMMINSIND
Cummins India
Q1 FY27 earnings call · Guided by management
Call held 6 Aug 2026 · Read the filing on NSEFiling
- M.Cap
- ₹1,18,037Cr₹1.18L Cr
- P/E
- 52.4×
- 1Y return
- −3.12%
- From 52W high
- −30.2%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q1 FY27, as filed · consolidated · ₹ Cr
| Q1 FY27 | Q1 FY26 | YoY | Q4 FY26 | QoQ | |
|---|---|---|---|---|---|
| Revenue | 3,426 | 2,907 | +17.9% | 3,011 | +13.8% |
| EBITDA | 616 | 624 | -1.2% | 642 | -4.0% |
| EBITDA margin | 18.0% | 21.4% | -347 bps | 21.3% | -335 bps |
| One-off items | — | 13 | — | 32 | — |
| PBTProfit before tax | 697 | 719 | -3.1% | 766 | -9.0% |
| Net profit | 609 | 604 | +0.9% | 649 | -6.2% |
| EPS (₹) | 21.98 | 21.79 | +0.9% | 23.43 | -6.2% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
In short
- 01Q1 FY27 sales were Rs 3,375 crore, up 18% on the same quarter last year.
- 02Profit before tax before exceptional items was Rs 721 crore, 0.7% lower year on year.
- 03Domestic power generation sales rose 35% to Rs 1,424 crore; data centres were 40% of power generation revenue.
- 04Commodity, freight and inflation costs weigh on margins; one price rise taken at the start of Q2.
- 05Management said margins can improve but would not say if they return to historic highs.
- 06Distribution business said to have potential to grow 20% this year and the next few years.
- 07Plant utilisation is 70% to 75%; capex in line with recent years at existing plants.
- 08Parent Cummins management is looking to appoint a successor to the Managing Director.
Capex
Capital investment in line with recent years, in existing plants
Shveta Arya · Managing Director · Q&A · p. 10
Capital investment in line with recent years, in existing plants
“And the capital investment is in line with what we have been doing in the last few years in our existing plants.”
Capacity
Power generation: Not yet at the point of building QSK78 and QSK95 capacity; still evaluating
Shveta Arya · Managing Director · Q&A · p. 13
Power generation: Not yet at the point of building QSK78 and QSK95 capacity; still evaluating
“So we haven't reached the point where we would need to establish capacities yet of 78 and 95 liters and we continue to evaluate that.”
Order book
Exports: Order books built only 2 to 3 months in advance
Shveta Arya · Managing Director · Q&A · p. 5
Exports: Order books built only 2 to 3 months in advance
“order books don't get built this early in the year, they get built 2 to 3 months in advance only”
Segments
Power generation domestic: Domestic power generation sales Rs 1,424 crore, up 35% year on year
Shveta Arya · Managing Director · p. 3
Power generation domestic: Domestic power generation sales Rs 1,424 crore, up 35% year on year
“power generation domestic sales are at INR1,424 crores. That's a 35% increase over last year and 10% increase over last quarter.”
Distribution: Distribution business sales Rs 886 crore, up 14% year on year
Shveta Arya · Managing Director · p. 3
Distribution: Distribution business sales Rs 886 crore, up 14% year on year
“Distribution business sales at INR886 crores, 14% increase over last year and 16% increase over last quarter.”
Industrial domestic: Industrial domestic sales Rs 458 crore, up 10% year on year
Shveta Arya · Managing Director · p. 3
Industrial domestic: Industrial domestic sales Rs 458 crore, up 10% year on year
“Industrial domestic business sales are at INR458 crores. 10% increase over last year and 20% increase over last quarter.”
High-horsepower exports: High-horsepower exports Rs 296 crore, up 16% year on year
Shveta Arya · Managing Director · p. 3
High-horsepower exports: High-horsepower exports Rs 296 crore, up 16% year on year
“High-horsepower exports at INR296 crores are a 16% increase over last year and 37% increase over last quarter.”
Low horsepower exports: Low horsepower exports Rs 180 crore, down 20% year on year
Shveta Arya · Managing Director · p. 3
Low horsepower exports: Low horsepower exports Rs 180 crore, down 20% year on year
“Low horsepower exports are at INR180 crores, which is 20% decrease over last year and 2% increase over last quarter.”
Demand
Power generation: High horsepower demand outpacing supply; company adding capacity at specific nodes
Shveta Arya · Managing Director · Q&A · p. 4
Power generation: High horsepower demand outpacing supply; company adding capacity at specific nodes
“Demand is outpacing supply for everyone. And we have been putting in efforts to increase capacity at those specific nodes.”
Power generation domestic: Decent order velocity in domestic power generation across end markets
Shveta Arya · Managing Director · Q&A · p. 7
Power generation domestic: Decent order velocity in domestic power generation across end markets
“So across be it manufacturing, data centers, residential, commercial realty, all those, we see decent order velocity in the power generation space in domestic market.”
Mining: Mining tenders coming in; mining better this year
Shveta Arya · Managing Director · Q&A · p. 7
Mining: Mining tenders coming in; mining better this year
“But now slowly and steadily, tenders are coming in. So mining is better this year.”
Construction: No new national highway construction tenders coming in
Shveta Arya · Managing Director · Q&A · p. 7
Construction: No new national highway construction tenders coming in
“And construction, there are no new road highway, national highway construction tenders coming in.”
Railways: Railways demand has been strong
Shveta Arya · Managing Director · Q&A · p. 7
Railways: Railways demand has been strong
“Railways has been strong. You have seen that in the last 2, 3 quarters. And for now, railways has been strong.”
Margins and costs
Higher commodity costs and inflation influenced margins in the quarter
Shveta Arya · Managing Director · p. 3
Higher commodity costs and inflation influenced margins in the quarter
“However, higher commodity costs and inflation remain key factors influencing margins during the quarter.”
Steel, pig iron, aluminium and copper costs rose significantly
Shveta Arya · Managing Director · Q&A · p. 4
Steel, pig iron, aluminium and copper costs rose significantly
“Major commodities, steel, pig iron, aluminum, copper significant increases.”
Margins expected to improve; no view on return to historic highs
Shveta Arya · Managing Director · Q&A · p. 5
Margins expected to improve; no view on return to historic highs
“So will we be able to improve our margins? Yes. I will not be able to say whether we will hit historic highs or not, because these are unprecedented times in terms of commodity increases and inflation coming at the same time.”
Freight costs rising; supply chain issues continue
Shveta Arya · Managing Director · Q&A · p. 5
Freight costs rising; supply chain issues continue
“Freight costs have been increasing. There are continuous supply chain issues that we see and continue to manage.”
Employee cost up on annual merit increase effective April 1, 2026
Shveta Arya · Managing Director · Q&A · p. 6
Employee cost up on annual merit increase effective April 1, 2026
“First is the annual merit increase that gets effective April 1, 2026.”
Acquisitions and new business
BESS: BESS installed as demonstrator at own Phaltan rebuild centre
Shveta Arya · Managing Director · Q&A · p. 10
BESS: BESS installed as demonstrator at own Phaltan rebuild centre
“We have already installed the BESS at one of our own plants, our own rebuild center in Phaltan.”
BESS: Close to getting first BESS orders; nothing more to share yet
Shveta Arya · Managing Director · Q&A · p. 10
BESS: Close to getting first BESS orders; nothing more to share yet
“Very close to getting some orders, but nothing more to share yet on that.”
Rail: Working on further products for Indian Railways
Shveta Arya · Managing Director · Q&A · p. 14
Rail: Working on further products for Indian Railways
“But that was our first product in that space, and we are working on other products for the Indian Railways as well.”
Management
Cummins management looking to appoint successor to the Managing Director
Shveta Arya · Managing Director · Q&A · p. 14
Cummins management looking to appoint successor to the Managing Director
“So Cummins management is involved and they are absolutely looking to appoint a rightful successor for me.”
One-offs
Actuarial credit booked last quarter had lowered employee cost then
Shveta Arya · Managing Director · Q&A · p. 6
Actuarial credit booked last quarter had lowered employee cost then
“And then there is some actuarial credit, which was booked in the last quarter. This resulted in you seeing a lower cost.”
Risks
Exports: West Asia crisis is stopping some exports from going to the Middle East
Shveta Arya · Managing Director · Q&A · p. 6
Exports: West Asia crisis is stopping some exports from going to the Middle East
“Remember that the West Asia crisis is actually leading to some of our exports not going to the Middle East as anticipated.”
Inflation could affect some orders going forward
Shveta Arya · Managing Director · Q&A · p. 7
Inflation could affect some orders going forward
“We need to be very watchful of inflation in the regions because that can impact some of these orders going forward.”
Exports: Export outlook hard to call given geopolitical situation
Shveta Arya · Managing Director · Q&A · p. 8
Exports: Export outlook hard to call given geopolitical situation
“Exports is difficult to say and has been and continues to become difficult with the geopolitical situation.”
Power generation: Some supply constraint in quarter; data centres grew faster than other power gen
Shveta Arya · Managing Director · Q&A · p. 16
Power generation: Some supply constraint in quarter; data centres grew faster than other power gen
“So data center has grown faster in this particular quarter as compared to all others. There is a little bit of supply constraint that we faced.”
Inflation and supply chain constraints likely to continue
Shveta Arya · Managing Director · p. 16
Inflation and supply chain constraints likely to continue
“At this time, inflationary pressures and supply chain constraints are likely to continue and are shaping our operating environment.”
Other
Q1 sales Rs 3,375 crore, up 18% from Rs 2,859 crore a year ago
Shveta Arya · Managing Director · p. 3
Q1 sales Rs 3,375 crore, up 18% from Rs 2,859 crore a year ago
“Our sales at INR3,375 crores are higher by 18% compared to INR2,859 crores in the same quarter last year.”
Domestic: Domestic sales Rs 2,854 crore, up 22%; exports Rs 521 crore, flat
Shveta Arya · Managing Director · p. 3
Domestic: Domestic sales Rs 2,854 crore, up 22%; exports Rs 521 crore, flat
“Domestic sales at INR2,854 crores are higher by 22%. Exports at INR521 crores are flat.”
Profit before tax before exceptional items Rs 721 crore, lower by 0.7%
Shveta Arya · Managing Director · p. 3
Profit before tax before exceptional items Rs 721 crore, lower by 0.7%
“Profit before tax before exceptional items at INR721 crores is marginally lower by 0.7%.”
Profit before tax before exceptional items 12% lower than last quarter
Shveta Arya · Managing Director · p. 3
Profit before tax before exceptional items 12% lower than last quarter
“Profit before tax before exceptional items at INR721 crores is lower by 12%.”
Component and engine supply to group plants is business as usual, not new
Shveta Arya · Managing Director · Q&A · p. 8
Component and engine supply to group plants is business as usual, not new
“So I don't think there is any incremental demand coming from that. This is business as usual.”
Sources
- Earnings call transcript, Q1 FY27 Filed 11 Aug 2026 · 17 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.