Cummins India Q4 FY26 profit jumps 25%, stock up 11%

Key takeaway for investors

Cummins India reported a strong March-quarter performance for FY26, led by a sharp rise in domestic sales and broadly steady operating profitability. The company also disclosed an exceptional loss linked to labour codes, which slightly weighed on reported earnings. Even with that charge, profit growth and an operating profit beat versus consensus helped drive a sharp move in the stock. On the BSE, the share price closed up 11.09% at Rs 6,022.85, and the stock rose as much as 12% intraday to a 52-week high.

Q4 FY26 standalone profit rises 24.69% YoY

On a standalone basis, Cummins India’s net profit rose 24.69% year-on-year to Rs 650.12 crore in Q4 FY26, compared with Rs 521.37 crore in Q4 FY25. Total income for the quarter ended 31 March 2026 increased 21.5% to Rs 3,242.70 crore. Profit before exceptional items and tax came in at Rs 820.15 crore, up from Rs 680.69 crore in the year-ago quarter. The quarter included an exceptional loss of Rs 32.34 crore, which the company attributed to the impact of labour codes.

Consolidated numbers also show a similar trend

Separately, the company reported a 22.65% rise in consolidated net profit to Rs 649.46 crore for the fourth quarter ended March 2026, compared with Rs 529.5 crore a year earlier. Revenue from operations for the January to March period rose 22% to Rs 2,963.2 crore against Rs 2,428.13 crore in the year-ago quarter. In another set of Q4 FY26 operating metrics shared in the market, revenue was reported at Rs 3,012 crore versus Rs 2,457 crore, while EBITDA was Rs 642 crore versus Rs 520 crore. EBITDA margin, based on those figures, was 21.3% versus 21.2%.

Domestic sales lead growth, exports soften

The company’s Q4 FY26 sales mix showed a clear divergence between domestic demand and exports. Domestic sales stood at Rs 2,513 crore, up 30% year-on-year, and down 1% sequentially versus the previous quarter. Export sales came in at Rs 450 crore, down 6% year-on-year and 5% sequentially. The mix indicates that the quarter’s growth was driven primarily by India-facing business, while exports lagged.

Expenses rise in line with higher activity

Total expenses increased 21.85% year-on-year to Rs 2,422.55 crore during the quarter. The cost of materials consumed stood at Rs 1,707.48 crore, up 19.16% year-on-year, reflecting higher volumes and input costs. Employee benefit expenses rose 17.72% year-on-year to Rs 196.35 crore. A separate quarterly expense snapshot available in the results stream showed total operating expense at Rs 1,991.64 crore for the March 2025 period, Rs 2,597.35 crore for the December 2025 period, and Rs 1,822.89 crore for the March 2024 period.

Exceptional loss linked to labour codes

Cummins India reported an exceptional loss of Rs 32.34 crore in Q4 FY26 due to the impact of labour codes. The company also disclosed profit before exceptional items and tax, allowing investors to separate operating performance from one-off items. Such disclosures matter because exceptional items can distort quarter-on-quarter comparisons, especially when the underlying business is showing broad-based growth.

FY26 full-year performance: profit up 22.27%

On a full-year basis, Cummins India’s standalone net profit rose 22.27% to Rs 2,330.18 crore in FY26. Total income for the year increased 17.31% to Rs 12,863.69 crore. The full-year numbers suggest the company maintained momentum beyond a single quarter, supported by sales growth and operating discipline.

Dividend announced with July 2026 record date

Alongside the quarterly earnings, the board recommended a final dividend of Rs 46 per share for FY26. The company set July 17, 2026 as the record date for determining eligible shareholders. Dividend announcements often draw attention because they signal cash generation and board confidence, although the payout must be viewed in the context of future capital needs and cycle conditions.

Stock reaction and the operating profit beat

Shares of Cummins India recorded one of their sharper single-session moves after the results. The stock closed up 11.09% at Rs 6,022.85 on the BSE, and was reported to be up as much as 10% to 12% intraday. The move followed commentary that the company’s fourth-quarter operating profit was 18% ahead of Bloomberg consensus estimates, indicating a positive surprise versus expectations.

Context from FY25 and the prior quarter baseline

For FY25, Cummins India reported total standalone sales of Rs 10,166 crore, with domestic sales of Rs 8,395 crore and exports of Rs 1,771 crore. Profit before tax for FY25 stood at Rs 2,496 crore, up 16% over the previous year, as per the numbers shared in the results stream. In Q4 FY25, total sales were reported at Rs 2,414 crore, up 6% year-on-year and down 21% sequentially, with domestic sales at Rs 1,935 crore and export sales at Rs 479 crore. Q4 FY25 PBT was reported at around Rs 681 crore, providing a reference point for the Q4 FY26 PBT before exceptional items.

Summary table of key reported figures

What to watch next

Investors will track how domestic demand holds up in coming quarters, given the strong year-on-year growth but slight sequential moderation in domestic sales. Exports will also be a focus after the year-on-year and sequential declines reported for Q4 FY26. The market will watch for further disclosures on the labour-code impact after the exceptional loss booked in the March quarter. The next key checkpoint will be dividend-related timelines around the July 17, 2026 record date and any further updates on the company’s order environment and cost trends.