Cummins India is the desi arm of American giant Cummins Inc., selling engines, gensets, components, and lubricants. Q1 FY26 results? Sales at ₹2,907 Cr (+25.5% YoY), PAT at ₹594 Cr (+28.4% YoY). Margins holding steady at 20%+. The stock? Trading at ₹4,039 with a P/E of ~53, which is basically “Rolls Royce pricing” for a diesel engine manufacturer.
2. Introduction
Engines. Gensets. Turbochargers. If you’ve ever cursed a power cut while your neighbour’s generator hummed smugly, chances are it had Cummins stamped on it. Cummins India is not just an engine seller—it’s the quiet backup power to half of India’s IT parks, hospitals, and construction sites.
The company’s story is a mix of American engineering pedigree and Indian jugaad execution. It designs and builds diesel/natural gas engines, exports them globally, and also earns a fat chunk from lubricants via its Valvoline JV. Data centers are driving export demand, while infra projects keep domestic orders buzzing.
But here’s the twist: while the business is humming like a new engine, the stock is priced like an EV startup. High P/E, high EV/EBITDA, investors already paying for FY30 dreams in FY26. Question is: will Cummins keep revving or run out of diesel?
3. Business Model – WTF Do They Even Do?
Cummins is like a four-cylinder engine with each piston firing differently:
Engine Business Unit (~69% revenue): Core engines for industrial use, gensets, marine, and natural gas applications. The bread, butter, and pav-bhaji.
Power Systems: Full-scale power solutions for hospitals, IT campuses, data centers. Basically, if the lights go out, Cummins is the DJ generator.
Components Unit: Turbochargers, filters, emission solutions—critical add-ons that make engines compliant and efficient. Think of them as the “bling” accessories.
Distribution & Service: A vast aftermarket network. Cummins has 21 dealerships, 120+ offices, and supports over 5.7 lakh engines in the field. Service income = annuity cash.
Plus, the lubricants JV (Valvoline Cummins) brings stable cash flow, accounting for ~31% of consolidated business.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹2,907 Cr
₹2,316 Cr
₹2,470 Cr
25.5%
17.7%
EBITDA
₹624 Cr
₹473 Cr
₹525 Cr
32.0%
18.9%
PAT
₹594 Cr
₹463 Cr
₹530 Cr
28.4%
12.1%
EPS (₹)
21.8
16.7
19.1
30.5%
14.1%
Commentary: Cummins is in beast mode. Revenue growth healthy, margins expanding, PAT flying. Annualised EPS ~₹87, but TTM is ₹77. P/E 46–53x depending on method. Pricey, but performance justifies some of it.
