Shares of Cummins India surged as much as 12% following the release of exceptional fourth-quarter results. According to reports from NDTV Profit, this marked one of the stock's sharpest single-session moves in recent memory, reflecting strong investor confidence in the company's performance. The latest data shows the stock has maintained its strong momentum, with the 12% jump building on the earlier 10% surge that had pushed shares to a 52-week high. As per Moneycontrol, the stock is currently trading with a market capitalization of ₹167,082 crore and has a book value per share of ₹300.30.
The company delivered a blowout fourth-quarter operating profit that came in 18% ahead of Bloomberg consensus estimates. EBITDA for the quarter reached ₹642 crore, comfortably beating the Bloomberg estimate of ₹543.6 crore — an outperformance of nearly ₹100 crore. As reported by NDTV Profit, this strong performance was driven by both robust volume growth and tighter-than-expected cost control measures. The latest consolidated results show consolidated attributable profit rising to ₹6.49 billion in the fiscal fourth quarter ended March 31, from ₹5.30 billion a year ago. According to ET Now, the company reported a 22.3% year-on-year growth in EBITDA to ₹641 crore in Q4 FY26, compared to ₹524 crore in the same quarter of the previous financial year.
Revenue performance also exceeded expectations, rising 22.6% year-on-year to ₹3,012 crore against a Bloomberg forecast of ₹2,879.5 crore. According to NDTV Profit, this represented a beat of approximately 4.6%, demonstrating broad-based demand strength across Cummins India's industrial and infrastructure verticals. As per ET Now, the company's revenue from operations increased 21.9% YoY to ₹3,011 crore in Q4 FY26 against ₹2,470 crore reported in the year-ago period. EBITDA margins held steady at 21.3%, fractionally above the 21.2% recorded a year earlier, indicating genuine operating leverage rather than a one-quarter anomaly. The company operates through three main divisions: Power generation, Industrial engine business unit serving construction, mining, marine, rail, pumps, gas compression, oilfield, defense and re power segments, and Automobile business unit providing filtration, exhaust, turbo technologies, fuel systems and lubrication to truck customers.
Despite strong quarterly performance, Prabhudas Lilladher has downgraded its rating on Cummins India from 'Hold' to 'Reduce' with a revised target price of ₹5,133, down from the earlier ₹4,182. According to the research report dated June 01, 2026, the brokerage revised its EPS estimates by +8%/10.4% for FY27E/FY28E factoring in healthy domestic powergen demand, increasing contribution from data centers and distribution business, and sustained margin resilience. The stock is currently trading at a P/E of 59.7x/51.6x of FY27/28E, with Prabhudas Lilladher rolling forward to March 2028 and downgrading given the rally in stock price valuing it at a PE of 45x Mar'28E. The brokerage cited that while exports demand particularly in Europe and Asia-Pacific markets expected to remain moderate, the outlook remains healthy driven by rising data-centre investments and healthy domestic industrial demand.
The company has declared a 2,300% dividend for shareholders following the strong quarterly performance. As per the regulatory filing, the record date for determining eligible members has been fixed as Friday, July 17, 2026, with the final dividend to be paid on or before September 4, 2026. According to ET Now, management expects moderate growth in FY27 despite healthy domestic demand, with the export outlook remaining cautious due to ongoing geopolitical uncertainties. The company highlighted that Power Generation revenue surged 48% YoY, remaining the key growth driver, with data centres contributing 30-35% of domestic Power Generation revenue in FY26. Strong demand from hyperscalers and colocation players continues supporting order inquiries, while the distribution segment is expected to benefit from aftermarket demand as engines begin rolling out of standard warranty periods from June 2026.
