Cummins India Limited Q2 FY27 Revenue Rises 4.13%, PAT Falls 18.5%

Cummins India Limited reported consolidated revenue of Rs 3,301.21 crore for Q2 FY27, a 4.13% year-on-year increase, while profit after tax fell 18.5% to Rs 507.17 crore for the quarter ended September 30, 2026. The results show that higher revenue did not prevent a decline in operating profit and net profit.

What did Cummins India report for Q2 FY27?

Cummins India announced its unaudited financial results for the July to September 2026 quarter on November 4, 2026. The board approved the standalone and consolidated results for the quarter and half-year ended September 30, 2026, along with the statutory auditor's limited review report.

On the consolidated basis presented in the company's Q2 FY27 highlights, revenue was Rs 3,301.21 crore, compared with Rs 3,170.27 crore in Q2 FY26. Operating profit was Rs 506.27 crore, down from Rs 694.79 crore a year earlier. Consolidated profit after tax, or PAT, was Rs 507.17 crore against Rs 622.33 crore in the comparable quarter.

The reported outcome therefore combines modest top-line growth with lower profitability. Revenue increased by 4.13% year-on-year, but operating profit declined by 27.13% and PAT declined by 18.5% year-on-year.

Why did profitability decline despite higher revenue?

Profitability declined as total expenses rose, including higher material-consumption and employee-benefit costs, according to the reported results. Consolidated total expenses were Rs 2,851.87 crore during Q2 FY27, which put pressure on earnings even as revenue increased from the year-earlier period.

The company separately reported consolidated revenue from operations of Rs 3,247.47 crore, up 4.0% year-on-year from Rs 3,121.58 crore. This measure differs from the Rs 3,301.21 crore consolidated revenue figure stated in the Q2 FY27 financial highlights. The disclosed information identifies both figures but does not provide a reconciliation between them in the material provided.

Standalone performance followed the same direction. Cummins India reported standalone sales of Rs 3,247 crore, up 4% year-on-year but down 4% sequentially. Standalone profit before tax was Rs 601 crore, down 28.4% year-on-year and 16.6% quarter-on-quarter, while standalone PAT was Rs 467 crore with a net profit margin of 14.4%.

How did domestic and export sales perform?

Domestic sales rose 5% year-on-year to Rs 2,692 crore during the September 2026 quarter, while export sales increased 2% to Rs 555 crore. Domestic sales were 6% lower sequentially, whereas exports rose 6% from the previous quarter.

The domestic business remained the larger contributor to standalone sales. The sequential decline in domestic sales was accompanied by a quarterly decline in total standalone sales, even though the company maintained year-on-year growth in both domestic and export revenue.

Cummins India operates through Engines and Lubes segments. The Engines business is its core segment, and the supplied results information says engine sales remained flat at Rs 3,247.47 crore in Q2 FY27 compared with Q2 FY26. The Lubes business is accounted for through joint ventures and associates using the equity method and was described as contributing to top-line growth on a gross basis before eliminations.

What do the half-year figures and cash flows show?

For the half-year ended September 30, 2026, Cummins India reported total income of Rs 7,001.79 crore and total expenses of Rs 5,718.21 crore. Profit before exceptional items and tax was Rs 1,283.58 crore, while PAT was Rs 1,116.47 crore.

Operating activities generated net cash flow of Rs 1,020.75 crore in the half year. Investing activities resulted in a net cash outflow of Rs 85.08 crore, and financing activities resulted in a net cash outflow of Rs 1,281.04 crore.

Cash and cash equivalents stood at Rs 166.27 crore as of September 30, 2026, compared with Rs 500.01 crore on March 31, 2026. The company attributed the reduction primarily to dividend payouts of Rs 1,272.66 crore during the half year. Consolidated assets were Rs 11,386.43 crore at September 30, while standalone assets were Rs 10,703.62 crore.

What does the Q2 result mean for investors and operations?

The Q2 result means Cummins India delivered year-on-year revenue growth but recorded lower operating and net profits as expenses increased. For investors, the principal reported trend is the difference between the 4.13% rise in consolidated revenue and the 18.5% decline in consolidated PAT.

The result also highlights the importance of margins in the company's operating performance. Standalone PBT margin was 18.5%, while standalone PAT margin was 14.4%. The supplied information does not include a share-price movement or an official forward outlook, so no direct market reaction or earnings forecast can be drawn from these results alone.

The statutory auditor, Price Waterhouse & Co Chartered Accountants LLP, said that nothing had come to its attention during its review to indicate that the financial statement had not been prepared in all material respects in accordance with applicable Indian Accounting Standards and generally accepted accounting principles in India. The review was conducted under SRE 2410.

Conclusion

Cummins India closed Q2 FY27 with consolidated revenue growth of 4.13% to Rs 3,301.21 crore, but higher reported expenses coincided with a 27.13% fall in operating profit and an 18.5% decline in PAT to Rs 507.17 crore. Domestic and export sales both grew from a year earlier, while standalone sales and profit measures declined sequentially.

Investors will watch the company's subsequent disclosures for whether revenue growth converts into improved operating profitability, particularly given the reported pressure from material and employee costs. The next results update will also provide further context on sales momentum across domestic and export markets and on cash levels after the Rs 1,272.66 crore half-year dividend payout.