MUMBAI–Cummins India reported a 27% decline in net profit for the second quarter of fiscal 2027, as rising commodity and freight costs and an unfavorable product mix squeezed margins despite continued growth in domestic and export sales.
The engine and power generation equipment manufacturer posted a profit after tax of Rs 467 crore for the quarter ended September 2026, compared with Rs 638 crore in the corresponding period a year earlier, according to a regulatory filing Thursday.
Total sales increased 4% year over year to Rs 3,247 crore from Rs 3,122 crore in the second quarter of fiscal 2026.
Domestic sales rose 5% to Rs 2,692 crore, compared with Rs 2,577 crore a year earlier, supported by demand from several major industrial and commercial sectors.
Export sales increased 2% to Rs 555 crore from Rs 545 crore in the corresponding quarter of the previous fiscal year.
Although sales expanded across both markets, higher input and transportation costs weighed on the company’s profitability.
Adegbile Adewunmi, Managing Director of Cummins India, said demand remained strong in key domestic markets, particularly data centers, manufacturing, real estate and the company’s distribution operations.
“Demand remained healthy across key domestic markets, supported by data centers, manufacturing, realty and continued growth in the distribution business. Exports also recorded growth over the previous quarter. Commodity and freight inflation, coupled with product mix, impacted margins,” Adewunmi said.
The company has introduced pricing measures intended to offset rising costs, although the financial benefits are expected to materialize gradually.
“The benefits of pricing actions are expected to flow through progressively. 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,” he added.
Cummins India’s performance reflects continued demand for power generation and industrial equipment, even as inflationary pressures affect operating profitability.
The company serves a range of industries, including manufacturing, commercial infrastructure and power generation, with demand increasingly supported by expanding data center infrastructure.
Looking ahead, Cummins India expects demand in both domestic and international markets to remain stable.
However, management cautioned that geopolitical uncertainty, fluctuating commodity prices, inflation and changing global supply chain conditions could continue to influence business performance.
The company said it would maintain its focus on managing costs, improving price realization and executing customer orders efficiently as it navigates the challenging operating environment. (Source: IANS)
