Cummins India Q1 mixed as revenue beats, margin disappoints; MD to exit

Cummins India Ltd reported a mixed June-quarter performance on Wednesday, delivering stronger-than-expected revenue growth but missing Street estimates on profitability as operating margins came under pressure.

The company also announced that Managing Director Shveta Arya will step down at the end of August to pursue opportunities outside the organisation.

Standalone revenue rose 17.9% year-on-year to ₹3,426 crore, ahead of CNBC-TV18's estimate of ₹3,286 crore, reflecting healthy demand across key domestic businesses. However, net profit declined 7.9% to ₹543 crore, falling well short of the Street's expectation of ₹652 crore.

EBITDA slipped 1.2% to ₹616.2 crore, while the operating margin narrowed sharply to 18% from 21.5% a year ago, also below analysts' expectations.

Alongside the earnings, the company said Shveta Arya has resigned as Managing Director, Director and Key Managerial Personnel, with effect from August 31, 2026, to pursue external opportunities. Arya had taken over as Managing Director in September 2024 for a three-year term. The board accepted her resignation and placed on record its appreciation for her leadership and contribution during her tenure.

The results come against the backdrop of a cautious outlook outlined by management earlier this year. Speaking to CNBC-TV18 in May, Arya had said Cummins India continued to witness healthy domestic demand, but remained watchful of global uncertainties, including supply chain disruptions, labour shortages and elevated input costs. These challenges, she noted, made it difficult for the company to provide firm growth guidance for FY27.

While exports continue to face headwinds amid geopolitical uncertainties, management remains optimistic about growth opportunities in sectors such as data centres, railways and mining. Arya had highlighted sustained momentum in enquiries and orders from the data centre segment, positioning it as one of the company's key long-term growth drivers.

For the March quarter, Cummins India had reported revenue of ₹3,011 crore, profit after tax of ₹650 crore, and an operating margin of 21%.

Cummins India manufactures diesel and natural gas engines, power generation systems and related technologies, serving sectors including industrials, infrastructure, mining, railways and data centres.