Q2 Impact: Cummins India Share Price Tanks Over 14% As Profit Slumped, Margins Narrowed Sharply

Cummins India Ltd. tanked as much as 10% to get stuck in lower circuit after Q2 profit and margins fell sharply. The shares fell to a low of 4031.20 apiece on the NSE. 

The shares fell further to trade 11.6% lower at Rs 4,188 apiece by 10 a.m., as against a 1.79% advance in the benchmark Nifty index. 

Cummins India Q2 FY27 Highlights

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Cummins India reported a mixed set of Q2 consolidated results, with revenue rising modestly but profitability declining sharply on a year-on-year basis.

Revenue increased 4.1% to Rs 3,301 crore from Rs 3,170 crore a year earlier. However, net profit fell 18.5% to Rs 507 crore from Rs 622 crore, while EBITDA declined 27.1% to Rs 506 crore from Rs 695 crore. The company’s EBITDA margin contracted significantly to 15.3% from 21.9% in the corresponding quarter last year, indicating pressure on operating profitability despite revenue growth.

Brokerage Takes

Citi: Maintain Buy; TP at Rs 6,325.

• Data centres, manufacturing, real estate and distribution support steady domestic demand.
• Management expects pricing benefits to progressively offset commodity and freight inflation.
• Geopolitical uncertainty, product mix and supply-chain costs remain key risks to margin recovery.

Nomura: Maintain Neutral; cut TP to Rs 5,112 from Rs 6,000.

• Data centres, manufacturing, real estate and distribution support a steady demand outlook.
• Commodity and freight inflation could delay margin recovery despite pricing actions.
• Cuts FY27–29 EPS estimates by 4–9% as profitability recovery is expected to be slower.

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