Cummins India Limited — Q2 FY26
Cummins India delivered a strong Q2 FY26 with revenue of INR 3,122 crore, up 28% YoY, driven by broad-based Power Gen growth and a 40% contribution from data center project exec...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Order intake for Power Gen in India vs parent's record
Asked by Umesh Raut, Nomura
Management gave a qualitative answer but did not provide any order intake numbers or inquiry trends.
no specific numbers givenvague directional comment
Read the exchange
Question
How do you see order intake for India business Power Generation during the quarter gone by, and especially inquiries as well in the ongoing quarter?
Shveta Arya, Managing Director
From an India perspective, our market, from Power Gen perspective, our order intake is more diversified. It continues quarter on quarter. There is no specific change as I see it in the coming quarters.
Answered
High priority
Pricing and volume trajectory in Power Gen post CPCB IV+
Asked by Umesh Raut, Nomura
Management gave a clear answer on volumes being back to pre-CPCB IV+ levels and pricing having settled.
Read the exchange
Question
In terms of any pricing action pertaining Power Generation segment and the volume trajectory as compared to CPCB IV+ era, how do you see outlook now and volumes kind of shaping up, especially in medium HP and low HP segment?
Shveta Arya, Managing Director
Across the range in Power Gen market, the volumes are now back to pre-CPCB IV+ era. Pricing has settled down. Of course, there are competitive pressures in the market, so pricing is an ongoing moving thing.
Answered
High priority
Industrial segment decline reason
Asked by Umesh Raut, Nomura
Management directly attributed the decline to extended monsoon impacting construction and mining.
Read the exchange
Question
My last question is pertaining to industrial segment, where we have seen decline on a year-on-year basis. Was it pertaining to any particular segment or the impact of extended monsoon that we had in the domestic market?
Shveta Arya, Managing Director
One of the impacts is the extended monsoon, which has ended up impacting the construction segment. The largest impact came from there in the construction segment, where we saw degrowth in this quarter as compared to the same quarter last year, as well as the sequential quarter.
Answered
High priority
Power Gen growth ex-data center
Asked by Chintan Parikh, HDFC Securities
Management provided the exact percentage of data center contribution and the ex-data center growth rate.
Read the exchange
Question
This 49% growth Power Gen business, if you can help us quantify, X of data center, the Power Gen business, what was the growth? Like to like.
Shveta Arya, Managing Director
Approximately 40% of Power Gen sales in this particular quarter came from data centers. On the Power Gen side, if I exclude data centers, then we have grown 20% as compared to the same quarter last year.
Partial answer
High priority
Export sustainability and outlook
Asked by Chintan Parikh, HDFC Securities
Management acknowledged softening but did not quantify the expected decline or provide a clear outlook.
no quantitative outlookuncertainty about duration
Read the exchange
Question
Particularly of interest, if this trend, do you expect this trend to continue? Or do you think now we are somewhere, like, I mean, growth from here on will be maybe challenging and kind of peaking out?
Shveta Arya, Managing Director
We are seeing a little bit of softening of the order intake from exports at this point in time. Largely, we do see this coming in the quarter, which is the last quarter of the year because of a lot of inventory correction in our channel space.
Partial answer
Medium priority
Best Solution orders and threat from Arrow derivatives
Asked by Chintan Parikh, HDFC Securities
Management gave qualitative interest but no order details, and dismissed turbine competition without data.
no order numbers givendismissed threat without specifics
Read the exchange
Question
Have we won any new orders? Also, along with the Best, this new product, which is Arrow derivatives, some of the players have launched this, especially on the data center side. Put together these two things, I mean, do these two have long-term threat to Power Gen business in the data center side?
Shveta Arya, Managing Director
The Best Solution, there is a lot of interest from the market. I cannot share that we have a good order board yet. Turbines resolve a very different problem for the market, and they operate at a very different range. We do not see competition from that space emerging just yet.
Evasive
High priority
Key upside triggers for Power Gen in next calendar year
Asked by Renu Bett, IIFL Capital
Management explicitly said 'I won't be able to give you too much' and gave only generic comments.
refused to give outlookvague generalities
Read the exchange
Question
In your view, what could be the key upside triggers for growth in this space? Where do you see challenge to the volume numbers coming through in calendar year 2026 or 2027 for Cummins?
Shveta Arya, Managing Director
I won't be able to give you too much around this. Let me just tell you that the backup power market in India, just like you said. Segments like realty, commercial realty, or the construction that's happening where also our backup power is used.
Answered
High priority
Industrial subsegment numbers and outlook
Asked by Renu Bett, IIFL Capital
Management provided specific subsegment revenue numbers and explained the reasons for the slowdown.
Read the exchange
Question
Our industrial segment has seen both VAIO, VAIQ, QoQ moderation. If you can share some comments. A, on the subsegment numbers this quarter, and in terms of commentary, which was the bucket, whether it was construction, compressors, railways which slowed, how was the growth outlook looking there?
Shveta Arya, Managing Director
For this quarter, construction was at INR 121 crore. Rail was at INR 120 crore. Mining at INR 17 crore, compressor at INR 56 crore, and then the others. Due to extended monsoons, construction did not pick up as much as we had anticipated.
Partial answer
High priority
Gross margin outlook over next 12-15 months
Asked by Renu Bett, IIFL Capital
Management stated intent but did not commit to a specific margin range or quantify impact of challenges.
no specific margin guidancelisted factors without quantification
Read the exchange
Question
What would be your view on the gross margins over the next 12-15 months? Do we think we should be able to retain these 35%-36% range gross margins, or there could be some compressions going ahead?
Shveta Arya, Managing Director
The endeavor always is to maintain or expand the margins. That is what we commit to our stakeholders. There are quite a few challenges. I would say competitive intensity in Power Gen side is becoming. Every month, every quarter, it increases.
Answered
High priority
Sustainability of data center revenue level
Asked by Pulkit Patni, Goldman Sachs
Management clearly explained why the quarter's data center revenue was lumpy and not necessarily sustainable at that level.
Read the exchange
Question
Why do you call it a one-off chunky order? Why do you not see this level of growth sustaining, particularly in light of the kind of commentary we are seeing from different data center companies in terms of their plans for India?
Shveta Arya, Managing Director
Data centers in India have been growing via what we call colo players... Some of these big data center orders are not. That is lumpy business. It depends on site clearances that our hyperscalers are able to get.
Partial answer
Medium priority
Competitive intensity in high horsepower segment
Asked by Aditya Mongia, Kotak Securities
Management acknowledged intensity but did not detail what competitors are doing differently or quantify the impact.
declined to specify competitor actionsvague on impact
Read the exchange
Question
What are your competitors now doing differently that makes us a little bit more concerned on how this segment kind of pans out for us over time?
Shveta Arya, Managing Director
I may not be able to say what our competition is doing differently. We just see a lot of competitive intensity across the board. We encounter more and more of our competition in every deal that we go and look for.
Answered
Medium priority
Power Gen split across HHP, MHP, LHP
Asked by Shirom Kapur, Jefferies
Management provided exact revenue figures for each subsegment.
Read the exchange
Question
Could you give the split Power Gen business across HHP, MHP, LHP in case I missed that earlier?
Shveta Arya, Managing Director
From Power Gen business perspective, in this quarter, the low horsepower was about INR 100 crore. The medium range was about INR 250 crore. The heavy-duty, again, about INR 100 crore. The remaining was the high horsepower and projects business.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Power Gen growth ex-data center: 20% YoY | 20% | 28% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.