Shares of Cummins India Ltd. are trading with gains of over 4% on Thursday, February 5, having recovered over 8% from the lows of the trading session. According to reports from CNBC TV18, the stock is now trading 4.3% higher at ₹4,380, having recovered from the intraday low of ₹4,032 from earlier in the day. The stock has risen 50% over the last 12 months, demonstrating strong long-term performance despite recent quarterly challenges.
During its earnings call, the management provided bullish commentary regarding the data center business segment. As reported by CNBC TV18, the management guided for double-digit domestic revenue growth across segments for financial year 2027, with the data center business also expected to see double-digit growth. The management expects the next three to four years to see positive developments for the data centers business, which will also gain momentum in the domestic market. Currently, 25% of the revenue mix in the power generation business is from Data Centers. According to the latest Q4 2025 earnings call transcript, data center-related revenues reached about $3.5 billion in 2025, and are expected to increase in 2026 as power system capacity and order intake grow.
For the December quarter, Cummins India's revenue and EBITDA missed street expectations, while the profits were lower due to an exceptional item of ₹126.5 crore. According to reports from CNBC TV18, domestic sales were also down 2%, while export sales grew by 2%. During the earnings call, the management said that the exports remain choppy with no clear trend, and that the sales mix hit was offset by cost cuts.
Cummins Inc is scheduled to release its FY2025Q4 earnings report on February 5, 2026, during pre-market trading. According to Intellectia's AI analysis, analysts' consensus predicts $8.15 billion in revenue and an EPS of 5.20 for the quarter. The AI algorithms forecast a beat for the earnings driven by strong performance in power generation and margin resilience, despite challenges in truck demand. The company's $500 million military contract from December 12 and EPA approval for dual-fuel engine conversions from January 20 signal robust demand in power generation, particularly for data centers.
Brokerage firm Nomura maintained its 'buy' rating on Cummins India with a price target of ₹4,780, citing the company's strong balance sheet and disciplined capital allocation. However, as reported by CNBC TV18, UBS has a 'sell' rating on the stock with a price target of ₹3,400, while JM Financial has a 'sell' rating with a price target of ₹3,630. The mixed analyst sentiment reflects varying views on the company's prospects despite the positive data center outlook.
