Cummins India profit rises 22.66% as other income lifts quarterly earnings
Revenue grew 21.89% year on year, while operating margin stayed broadly stable and remained 5.67 percentage points above the Industrials peer median.
Filed 27 May 2026, 14:21 IST · Cummins India Ltd (CUMMINSIND)
Key takeaways
- Consolidated net profit rose 22.66% year on year to Rs 649.46 cr, with other income contributing 30.89% of pre-tax profit.
- Operating margin improved 0.56 percentage points sequentially to 21.33% as expenses fell 2.12% against a 1.43% revenue decline.
- The stock gained 11.24% on the results day, well above its 4.5% median move after the past eight results.
Price around the results
Profit growth outpaced revenue in Q4FY26
Cummins India's consolidated revenue grew 21.89% year on year, while operating profit increased 22.26%, indicating broadly stable operating leverage. Net profit grew 22.66% to Rs 649.46 cr, helped by a 54.06% year-on-year decline in interest expense. However, other income accounted for 30.89% of pre-tax profit, so reported earnings included a sizeable non-operating contribution.
Sequential margin recovery came despite softer sales
Revenue fell 1.43% sequentially, but expenses declined faster at 2.12%, lifting operating margin by 0.56 percentage points. The tax rate increased 1.45 percentage points sequentially and 0.45 percentage points year on year, so the profit growth was not driven by a lower tax rate. Interest expense also fell 49.16% sequentially.
Margin is above peers but below the recent peak
The 21.33% operating margin was 5.67 percentage points above the 15.66% median for 71 Industrials peers that had reported the quarter. Margin recovered from 20.77% in Q3FY26 but remained below the 21.92% recorded in Q2FY26. Year on year, the margin change was only 0.07 percentage points, pointing to limited operating-margin expansion despite the revenue growth.
The market reaction was unusually positive for this stock
The shares rose 11.24% on the results day, with volume at 4.52 times the reference level. That move was well above the stock's 4.5% median absolute reaction across its past eight results, during which it rose six times and fell twice.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,011 cr | ₹3,055 cr | -1.43% | +21.89% |
| Other income | ₹263 cr | ₹46 cr | +469.60% | +21.32% |
| Expenses | ₹2,369 cr | ₹2,420 cr | -2.12% | +21.79% |
| Operating profit | ₹642 cr | ₹634 cr | +1.21% | +22.26% |
| Operating margin (%) | 21.33% | 20.77% | — | — |
| Interest | ₹2 cr | ₹5 cr | -49.16% | -54.06% |
| Depreciation | ₹51 cr | ₹50 cr | +1.45% | +9.89% |
| Profit before tax | ₹852 cr | ₹626 cr | +36.16% | +23.38% |
| Tax | ₹202 cr | ₹139 cr | +45.04% | +25.78% |
| Net profit | ₹649 cr | ₹486 cr | +33.62% | +22.66% |
| EPS (₹) | ₹23.43 | ₹17.53 | +33.66% | +22.67% |
Operating margin of 21.33% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +11.24% | +11.27% |
| Next session | +8.54% | — |
| 5 sessions | +6.81% | +8.89% |
| 15 sessions | +8.11% | — |
| 30 sessions | +3.75% | — |
Volume on the results session was 4.52× its 20-day average.
What to watch
- Whether operating margin holds above 21.33% after the sequential recovery from 20.77%.
- Whether other income's contribution to pre-tax profit stays below or around 30.89%.
- Whether revenue resumes sequential growth after the Q4FY26 decline of 1.43%.