Cummins India (KKC IN) – Q2FY27 Result Update – Muted Q2; Pricing benefits yet to flow through – BUY
Published on 05 Nov 2026
We have revised our EPS estimates downward by -15.0%/-3.9%/-3.7% for FY27E/FY28E/FY29E, respectively, factoring in near-term margin pressures from elevated commodity and freight costs, supply-chain disruptions and an adverse product mix. While the pricing actions implemented in Q2FY27 are expected to provide a gradual offset, we have adopted a relatively cautious outlook on margin recovery, particularly for FY27E. We maintain our ‘BUY’ rating on the stock value the stock at a PE of 43x Sep’28E (same earlier) with revised TP of INR 5,334 (INR 5,414 earlier). We are likely to revisit our estimates post the call, factoring in further clarity on demand trends, pricing actions and margin recovery.
