Cummins India (KKC IN) – Q3FY26 Result Update – In line Q3, growth outlook remains intact – HOLD
Published on 06 Feb 2026
Cummins India (KKC) delivered in line performance with revenue declining 1.2% YoY (against higher base) and EBITDA margin expanding by 296bps YoY to 22.4%. The management reiterated double-digit revenue growth guidance for FY26, led by continued strength in the domestic Powergen, while exports are expected to remain subdued in the near term. Domestic Powergen revenue declined due to lower HHP sales (against higher base); however, core Powergen (ex–data center) demand is expected to remain steady, supported by continued traction across residential & commercial real estate, manufacturing and infrastructure. While order pipeline from data centers remain healthy, aided by policy support and sustained investments in data centers across globe. Distribution continued to outperform with 26% YoY growth on broad-based traction across Powergen, Defence, Railways and Mining. Industrial revenue declined by 9% YoY due to weakness in construction and railways, partly offset by continued strength in the marine segment and improving mining activity. Export demand remained firm in Europe and the Middle East, though near-term softness persists. The stock is trading at a P/E of 48.2x/42.5x of FY27/28E. Bottom of FormWe maintain our ‘HOLD’ rating valuing the stock at a PE of 43x Sep’27E (same as earlier) with revised TP of Rs4,182 (Rs4,172 earlier).
