Cummins India Q4FY26 Results 2026: PAT ₹650 Cr

Key takeaway from the quarter

Cummins India reported a strong Q4FY26, supported by a sharp pickup in domestic demand even as exports stayed under pressure. The company continued to benefit from a rising share of data centre-related demand within its PowerGen business, alongside demand from manufacturing, commercial real estate, railways, and mining. In Q4FY26, domestic sales grew 30% year-on-year, while export sales fell 6% amid geopolitical tensions. Multiple disclosures in the provided data point to slightly different “total income” and “sales” figures for the quarter, but all indicate over 20% year-on-year growth. The net profit reported for the March 2026 quarter was about ₹650 crore, up materially versus the year-ago quarter.

Q4FY26 revenue, profit, and margins

For Q4FY26, the company’s total sales (also referred to as revenue from operations in parts of the input) were reported at ₹2,963 crore, up 23% year-on-year from ₹2,428 crore in Q4FY25. The quarter also showed mild sequential softness, with one disclosure citing a 1.4% QoQ dip from Q3’s ₹3,006 crore. Total income for Q4FY26 was cited at ₹3,155.89 crore in one set of figures, while another set put total income at ₹3,242.70 crore. Another Q4 “Total Income” highlight in the input lists ₹3,011.18 crore.

On profitability, Q4FY26 PAT was reported at ₹649.46 crore in the highlights, and another disclosure put standalone net profit at ₹650.12 crore. The company also reported net profit of ₹637 crore in one section of the input, described as up 22% year-on-year and up 16% quarter-on-quarter. EBITDA for the quarter was cited at ₹642 crore, up 24% year-on-year, with an EBITDA margin of 21.3% (up 17 bps YoY and 56 bps QoQ). Gross margin was reported at 36.0% in Q4, down 113 bps YoY and 182 bps QoQ.

Data centres emerge as a major PowerGen driver

A key theme in the quarter was the scale of data centre demand within domestic PowerGen revenue. Data centres contributed 30% to 35% of domestic PowerGen revenue in FY26, with 35% contribution in Q4, according to the input. The demand was driven primarily by co-location (colo) players, with hyperscalers also gaining traction. The company described inquiry momentum as accelerating across hyperscalers and co-location data centres, pointing to a possible multi-year demand path in this segment.

This rise matters because it changes the mix of end-markets within the domestic genset and power generation cycle. Along with data centres, the input cites CPCB IV+ transition as another demand support factor for the domestic market.

Domestic strength vs export pressures

Cummins India’s domestic sales in Q4FY26 were reported at ₹2,513 crore, up 30% year-on-year. Export sales were reported at ₹450 crore, down 6% year-on-year, and also down 5% sequentially in another disclosure. The company attributed the muted export environment to geopolitical tensions and said it is closely monitoring the impact of ongoing geopolitical developments on the broader economy.

The company’s management commentary in the input also flags steady domestic demand supported by continued investments and capex across key sectors. At the same time, it indicated that the export environment faces near-term pressure, with expectations of improved stability and growth over the medium to long term.

FY26 performance: record year, margin expansion

For FY26, revenue from operations (sales) was reported at ₹11,950 crore, up 18% year-on-year. Another section of the input cites FY26 revenue at ₹12,140 crore, while a separate disclosure reports FY26 total income at ₹12,863.69 crore. FY26 standalone net profit was reported at ₹2,330.18 crore, up 22.27% year-on-year.

Margins improved on a full-year basis despite a Q4 gross margin contraction. FY26 gross margin was cited at 36.8%, up 60 bps year-on-year. FY26 EBITDA margin expanded 140 bps year-on-year to 21.4%, with EBITDA at ₹2,590 crore, up 25.5% year-on-year.

Costs, exceptional items, and one-offs

The input notes that total expenses rose 21.85% year-on-year to ₹2,422.55 crore in Q4FY26. Cost of materials consumed was reported at ₹1,707.48 crore (up 19.16% YoY), while employee benefit expenses were ₹196.35 crore (up 17.72% YoY).

On exceptional items, the company reported an exceptional loss of ₹32.34 crore in Q4FY26 due to the impact of labour codes. Separately, another section notes that the Q3 base was depressed by a ₹127 crore labour code provision, which influenced the quarter-on-quarter comparison for Q4.

Dividend and board actions

The board recommended a final dividend of ₹46 per share for FY2025-26, in addition to an interim dividend of ₹20 per share declared earlier. The input also states that audited standalone and consolidated financial results for the year ended March 31, 2026, were approved with an unmodified audit opinion.

Market reaction and what stood out

The input notes that the Q4 operating profit came in 18% ahead of Bloomberg consensus estimates and that this triggered one of the stock’s sharpest single-session moves in recent memory. It also states that Q4 net profit of ₹649.46 crore beat analyst estimates by 18%. While the move itself is not quantified in the provided data, the key point is that the earnings delivery was ahead of expectations.

Another element highlighted is the domestic demand breadth: generation, industrial, and distribution businesses, with railways and mining flagged as key growth drivers. The input also references a “three-year demand cycle” in industrial and power generation engines remaining intact.

Summary table: key reported numbers

FY26 snapshot table

Conclusion: what to track next

Cummins India’s Q4FY26 reflected strong domestic momentum led by power generation demand, with data centres contributing 30% to 35% of domestic PowerGen revenue in FY26 and 35% in Q4. Exports remained the weak spot, falling 6% year-on-year in the quarter, and the company said it remains cautious amid geopolitical developments. For FY26, the company reported record revenue and profitability, alongside higher full-year margins and a dividend recommendation of ₹46 per share plus ₹20 per share interim dividend already declared. The next key monitorables from the provided commentary are the pace of data centre ordering, the CPCB IV+ transition-led replacement cycle, and whether export conditions stabilise as the company expects moderate growth with stable domestic demand.