Cummins India on track for strong FY26 show despite near-term concerns

A lumpy hyperscaler project lifted growth and margins, though management cautions that similar orders may not repeat and exports could soften

Cummins India (KKC) reported excellent Q2FY26 results with the date centre segment being the biggest driver while other segments including exports fared well. The exception was the industrial segment whose prospects were hit by the monsoon. Order inflows were diversified across sectors driven by demand for backup power within all horsepower categories. Aftermarket services are being driven by all segments including the installed base of CPCB-II products and not just new CPCB-IV products. 

The stock market reacted positively to the revenue and earnings beat. However, revenue was lumpy with large hyperscale project execution contributing a large chunk. Management sounded a