Cummins India Ltd.Sales +18%, Data Centres 40% of Power Gen

Cummins India reported Q1 FY27 sales of ₹3,375 Cr, up 18% year on year and 14% sequentially, with domestic sales up 22% to ₹2,854 Cr and exports flat at ₹521 Cr.

Profit before tax before exceptional items was ₹721 Cr, down 0.7% year on year and 12% sequentially, as commodity and freight inflation and higher employee costs squeezed margins. Domestic power generation grew 35% to ₹1,424 Cr, with data centres at 40% of power generation revenue against 23% a year earlier, while distribution grew 14% and industrial 10%. High-horsepower exports rose 16% but low-horsepower exports fell 20% on West Asia weakness.

Management took no price rise in Q1 and one at the start of Q2, saying realisation takes at least a quarter and will not recover all commodity inflation, and would not guide gross margins. Capacity utilisation is 70-75%, demand is outpacing supply at the high end, and the managing director said Cummins is seeking a successor to her. BESS orders are close but not yet booked.