Cummins India shares jump 4% post Q1 earnings; Nomura shares stock outlook

The company reported a 40 per cent rise in its profit after tax (PAT) figure to ₹589.27 crore during the quarter ended June 30, 2025, as against ₹419.8 crore reported in Q1FY25

Cummins India share price today: Shares of Cummins India rose over 4 per cent on Friday, August 8, 2025, hitting an intraday high of ₹3834.45 after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26).

At 10:05 am, shares of Cummins India were trading at ₹3,828.95, up by 4.06 per cent on the BSE. In comparison, BSE Sensex was trading at 80,130, down by nearly 500 points or 0.62 per cent.

The average trading volumes at the counter jumped multi-fold. At the time of writing this report, around 1.2 million shares had changed hands on the counter, cumulatively, on the NSE and BSE. 

 

Cummins India Q1FY26 earnings

The company reported a 40 per cent rise in its profit after tax (PAT) figure to ₹589.27 crore during the quarter ended June 30, 2025, as against ₹419.8 crore reported in the corresponding quarter of the previous fiscal year. Consolidated revenue from operations advanced over 26 per cent during the quarter under review to ₹2,906 crore, as compared to ₹2,304 crore reported in the same period of the last financial year.

The company's earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at ₹623 crore in Q1FY26, as against ₹419 crore reported in the first quarter of the last fiscal year. Ebitda margins stood at 21.4 per cent during the quarter under review, marking a 117 basis points (bps) year-on-year (Y-o-Y) increase, surpassing Bloomberg consensus, which stood at 19.7 per cent.

On the future outlook, Cummins India continues to be cautiously optimistic, maintaining momentum across both domestic and global markets. "While closely tracking policy developments in India and abroad, we’re confident in our ability to adapt and navigate any challenges that may arise," the company said in its regulatory filing. 

Brokerage View-Nomura

As per global brokerage firm Nomura, Cummins India's robust sales performance during Q1FY26 was primarily driven by demand from end-user markets. That apart, export levels also experienced a strong growth. This was largely on the back of channel initiatives, fit-for-market products, wherein products of a brand effectively match the requirements and needs of the target market, and sales penetration.

The brokerage firm has maintained a 'Buy' rating on the stock with a SOTP-based target price of ₹3,800. The stock is currently trading at 45x and 38x its FY26F and FY27F estimated earnings per share of ₹81 and ₹95, respectively.

"(The company's) Q1FY26 domestic sales outperformance was driven by demand from end user markets like data centers and mission critical applications. Management’s commentary on the demand outlook and the company’s newly launched Battery Energy Storage System (BESS) business should offer further clarity," Nomura said in its report.