Cummins India Shares Tank 14% After Q2 Results Miss Estimates

Shares of Cummins India Ltd. experienced a significant decline, falling as much as 14% on Thursday, November 5, following the release of the company's September quarter (Q2 FY27) financial results. Investors reacted to a report where both revenue and profitability failed to meet analyst projections. The stock was trading 13% lower at ₹4,109.8 following the announcement, leaving it down 8% on a year-to-date basis.

Cummins India Results Miss Expectations

For the second quarter of the 2027 fiscal year, the company reported standalone revenue from operations of ₹3,301 crore. While this represents a 4.1% increase compared to the ₹3,171 crore recorded in the same period last year, it fell 6.66% short of the ₹3,536.5 crore anticipated by analysts. Operational growth remained modest, with domestic sales rising 5% to ₹2,692 crore and export sales increasing 2% to ₹555 crore.

Profitability metrics saw a sharper decline. Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 27.13% year-on-year to ₹507 crore, missing the analyst estimate of ₹690 crore by 26.52%. Consequently, the EBITDA margin contracted by 658 basis points to 15.36%, compared to 21.94% in the year-ago quarter. This margin performance also fell 415 basis points below the 19.51% estimate provided by analysts.

Profit after tax (PAT) followed a similar downward trend, falling 26.69% to ₹467 crore from the ₹637 crore reported in the corresponding quarter of the previous year. This bottom-line figure was 25.34% lower than the analyst poll estimate of ₹625.5 crore.

Cummins India shares dropped 14% after Q2 FY27 revenue and profit missed analyst expectations.

Why it matters

The company stated that its margin performance during Q2 FY27 was negatively impacted by commodity cost inflation. Management further noted that higher freight costs and a change in product mix weighed on margins throughout the quarter. These results highlight the ongoing operational challenges facing the company, affecting its profitability outlook for the remainder of the fiscal year.