Cummins India Ltd. Q2 FY27 results

The quarter, explainedfrom the filing and the statements

Cummins India Ltd. reported revenue of ₹3,301 cr for July to September 2026, +4.1% on the year and −3.6% on the quarter. That is slower than this quarter has grown in recent years (+28.4% on average). Over the last four quarters revenue comes to ₹12,793 cr, +9.9% on the four before.

Operating profit (EBITDA) was ₹506 cr, a margin of 15.3%, −658 bps on the year and −265 bps on the quarter. It is the narrowest margin of the last 8 quarters (range 15.3% to 21.9%). Operating costs grew +12.9%, faster than revenue at +4.1%, so operating profit grew less than sales.

Net profit was ₹507 cr, −18.5% on the year and −16.8% on the quarter, with earnings per share of ₹18.30. Profit before other income, one-offs and tax fell 28.1%, so 10 points of the headline growth came from outside the core business. The tax rate of 21% is in line with its recent average. Profit over the last four quarters totals ₹2,251 cr, −2.7% on the four before.

Of the 58 companies in Capital goods and EPC that have reported Q2 FY27 so far, Cummins India Ltd. ranks 50th on revenue growth; the sector median is +19.8%. Its margin moved −658 bps on the year against a sector median of +6 bps.

Capital goods and EPC revenue follows project execution, which makes quarters uneven; the order book and new orders tell more about the year than one quarter does.

On earnings per share of ₹81.24 over the last four quarters, the stock at ₹4,135.20 trades at 50.9 times trailing earnings.

Questions to askeach one with its numbers and source

Could not run on this quarter: Exceptional items that recur, Borrowing while holding cash, IPO money used as stated, Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.

Where the profit change came fromSep '25 → Sep '26

Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.

The half year: balance sheet and cashfiled with Q2

Operating cash flow was 0.91× profit. Receivables at 72 days of sales (−11 days against the last year end). Inventory at 37 days of sales (+2 days).

From the filingauditor, IPO money, related parties, promoters

Inside the profitother income, one-offs, tax

Other income, line by line

• Interest income (6M consolidated): 74.38 crore (recurring)consolidated cash flow statement
• Dividend income (6M consolidated): 38.00 crore (recurring)consolidated cash flow statement
• Gain on redemption / sale of investments (net) (6M consolidated): 66.11 crore (recurring)consolidated cash flow statement

Tax: Consolidated tax expense of ₹134.06 crore (current tax ₹134.72 crore, deferred tax credit ₹0.66 crore) on Profit before tax of ₹641.23 crore for Q2 FY27

Order book and executionthe numbers this business is run on

Checks this sector needs

What management saidquoted, with source

• Demand remained healthy across key domestic markets, supported by data centers, manufacturing, realty and continued growth in the distribution business.press release, release p.2
• Commodity and freight inflation, coupled with product mix, impacted margins. The benefits of pricing actions are expected to flow through progressively.press release, release p.2
• The Company remains focused on disciplined order execution, price realization and cost management, while continuing to deliver on its promise of dependability and reliability to customers.press release, release p.2
• With a healthy balance sheet and a stable cash conversion cycle, the company continues to execute with discipline, deploy capital prudently and keep costs in check.press release, release p.2

Segments

Every quartersame rules, every quarter