Cummins India (KKC IN) – Q2FY26 Result Update – Domestic outlook intact while cautious on exports – HOLD
Published on 07 Nov 2025
Cummins India (KKC) delivered a strong quarterly performance with revenue growing 27.2% YoY and EBITDA margin expanding by 261bps YoY to 21.9%. Management guided for double-digit FY26 growth, supported by continued strength in Powergen, while exports are expected to remain muted amid inventory correction. Powergen growth was led by strong execution of data centre orders (40% of Powergen sales) and steady traction across infrastructure, manufacturing, airports, and healthcare propelling core power gen segments (+20% YoY). Industrial performance was impacted by extended monsoons and softer mining demand, partly offset by strength in railways. Export demand remained firm in Europe and the Middle East, though near-term softness persists. Competition in the LHP has intensified, meanwhile KKC maintains leadership in HHP and remains well positioned for sustained growth, aided by strategic investments and expanding opportunities in hyperscale data centers. The stock is trading at a P/E of 47.0x/41.8x FY27/28E. Bottom of FormWe roll forward to Sep’27E and maintain our ‘Hold’ rating valuing the stock at a PE of 43x Sep’27E (43x Mar’27E earlier) with revised TP of Rs4,172 (TP of Rs3,895 earlier)
