Cummins India profit slides 27% despite 4% revenue growth in Q2

Cummins India Limited reported a 27 percent year-on-year contraction in profit after tax for the second quarter of fiscal 2027, posting ₹467 crore against ₹638 crore in the corresponding period last year. Despite the significant earnings decline, the company managed to grow total revenues to ₹3,247 crore from ₹3,122 crore, representing a 4 percent increase over the prior-year quarter.

Domestic sales climbed 5 percent to ₹2,692 crore, up from ₹2,577 crore in Q2 of the previous financial year. Export revenues grew more modestly at 2 percent, reaching ₹555 crore compared with ₹545 crore in the year-ago period. The company cited continued strength across data centers, manufacturing, real estate and its distribution network as key growth drivers in the Indian market.

Managing Director Adegbile Adewunmi noted that demand remained robust across major domestic segments during the quarter. However, the company identified commodity price volatility and elevated freight costs as headwinds pressuring profitability, even as sales activity picked up. Export operations also showed improvement, though growth rates remained tempered by international market conditions.

The results underscore the divergent trends facing India's industrial equipment manufacturers, where rising input costs and logistics expenses continue to compress margins despite reasonable demand recovery across key end-user sectors.