Buy-on-dips a better strategy as Cummins' strong prospects seem priced in

Cummins India Q1 profit rose on Powergen and exports growth, with analysts bullish on long-term prospects but cautioning that current valuations reflect the optimism

Cummins India (Cummins) reported good results for the first quarter of 2025-26 (Q1FY26), comfortably beating consensus. Revenue growth was fuelled by growth in powergen and export business segments, with some gain in market share in powergen. Demand improvement in the powergen segment may be on the horizon with prices stabilised.

 

Consolidated revenues increased 26 per cent year-on-year (Y-o-Y) to ₹2,910 crore. Domestic sales at ₹2,340 crore grew 25 per cent Y-o-Y (21 per cent quarter-on-quarter, or Q-o-Q), whereas export sales rose 34 per cent Y-o-Y (9 per cent Q-o-Q) to ₹520 crore. Exports have been continuously increasing since Q4FY24.

 

Gross