Cummins India Stock Soars After Strong Q1 Earnings; Nomura Bullish on Outlook

Cummins India Shares Rally on Robust Q1FY26 Performance

Shares of Cummins India Share price witnessed a significant surge of over 4 per cent on Friday, August 8, 2025, as the market reacted positively to the company's impressive earnings report for the first quarter of the financial year 2025-2026 (Q1FY26). The stock touched an intraday high of ₹3834.45 on the back of these strong financial results.

At 10:05 am, the Cummins India Share was trading at ₹3,828.95 on the Bombay Stock Exchange (BSE), marking a substantial gain of 4.06 per cent. This positive movement occurred even as the broader market, represented by the BSE Sensex, was trading in the red, down by nearly 500 points or 0.62 per cent at 80,130. This divergence highlights the strength of Cummins India's Q1 performance in the eyes of investors.

The trading activity in Cummins India Share also saw a significant uptick, with average trading volumes jumping multi-fold. By the time this report was being compiled, approximately 1.2 million shares had changed hands across both the National Stock Exchange of India (NSE) and the BSE, indicating strong investor interest.

Key Highlights of Cummins India Q1FY26 Earnings

The stellar performance of Cummins India in the first quarter of FY26 was evident across its key financial metrics:

· Profit After Tax (PAT): The company reported a remarkable 40 per cent increase in PAT, reaching ₹589.27 crore for the quarter ended June 30, 2025. This is a significant jump compared to the ₹419.8 crore reported in the same period of the previous fiscal year. This substantial growth in profitability is a major driver of the positive sentiment surrounding the Cummins India Share.

· Revenue from Operations: Consolidated revenue from operations also showed strong growth, advancing by over 26 per cent to ₹2,906 crore during the quarter under review. This compares favorably to the ₹2,304 crore reported in the corresponding period last year, indicating robust business momentum for Cummins India.

· Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda): Cummins India recorded an Ebitda of ₹623 crore in Q1FY26, a significant increase from the ₹419 crore reported in the first quarter of the previous fiscal year. This growth in Ebitda underscores the company's operational efficiency.

· Ebitda Margins: The company's Ebitda margins stood at an impressive 21.4 per cent during the reported quarter. This represents a year-on-year increase of 117 basis points (bps) and notably surpassed the Bloomberg consensus estimate of 19.7 per cent, further boosting confidence in the Cummins India Share.

Future Outlook: Cautiously Optimistic

In its regulatory filing accompanying the Q1FY26 results, Cummins India expressed a cautiously optimistic outlook for the future. The company highlighted its ability to maintain momentum across both domestic and global markets.

The company stated, "While closely tracking policy developments in India and abroad, we’re confident in our ability to adapt and navigate any challenges that may arise." This forward-looking statement suggests that Cummins India is well-positioned to continue its growth trajectory, which is a positive signal for investors in Cummins India Share.

Brokerage Firm Nomura Maintains 'Buy' Rating on Cummins India

Global brokerage firm Nomura has provided its analysis of Cummins India's Q1FY26 performance, maintaining a 'Buy' rating on the stock with a Sum-of-the-Parts (SOTP) based target price of ₹3,800. This target price is slightly above the current trading price of the Cummins India Share, suggesting further potential upside according to Nomura's assessment.

Nomura's report highlighted that Cummins India's strong sales performance during the first quarter was primarily fueled by robust demand from end-user markets. Additionally, the company's export levels experienced significant growth. This export growth was attributed to several factors, including:

· Channel Initiatives: Strategic efforts to strengthen and expand distribution channels.

· Fit-for-Market Products: Developing and offering products that precisely meet the specific requirements and needs of the target markets. This focus on customer needs has likely contributed to the strong performance of Cummins India Share.

· Sales Penetration: Successful strategies to increase market share in existing and new geographies.

According to Nomura, the Cummins India Share is currently trading at 45 times its estimated earnings per share (EPS) for FY26F (fiscal year 2026 forecast) of ₹81, and at 38 times its estimated EPS for FY27F (fiscal year 2027 forecast) of ₹95. These valuation multiples are important factors for investors considering the Cummins India Share.

Nomura's report further elaborated on the drivers of the domestic sales outperformance: "(The company's) Q1FY26 domestic sales outperformance was driven by demand from end user markets like data centers and mission critical applications." This indicates that specific sectors within the Indian economy are contributing significantly to Cummins India's growth.

Looking ahead, Nomura believes that "Management’s commentary on the demand outlook and the company’s newly launched Battery Energy Storage System (BESS) business should offer further clarity." The BESS initiative is a new area for Cummins India and could be a significant growth driver in the future, further influencing the prospects of Cummins India Share. Investors will be keen to hear more details about this new venture and its potential impact on the company's financials.

Conclusion: Positive Momentum for Cummins India Share

The strong Q1FY26 earnings have clearly provided a significant boost to the Cummins India Share price. The substantial increases in profit, revenue, and Ebitda, coupled with positive commentary from the company and a 'Buy' rating from Nomura, suggest a positive outlook for the company. The focus on end-user market demand, export growth driven by strategic initiatives, and the potential of new ventures like the Battery Energy Storage System all contribute to a favorable investment case for Cummins India Share. Investors will likely continue to monitor the company's performance and the broader market conditions to gauge the future trajectory of the stock.

Disclaimer

This news blog post is for informational purposes only and should not be considered as financial advice. The stock market is subject to risks, and investment decisions should be made based on individual research and consultation with a qualified financial advisor. The past performance of Cummins India Share is not indicative of future results. Please be aware that the author may have personal opinions or biases that could influence the content of this blog post. Always conduct thorough due diligence before making any investment decisions.

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