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Broadly in-line performance

* Cummins India’s results were broadly in line with our estimates on revenue and PAT, while EBITDA beat our estimates.

*Revenue declined 1% YoY to INR30.6b, 4% above our estimate of INR29.4b.

* Domestic sales declined 2% YoY to INR25.4b (6% above our estimates), while export sales increased 2% YoY to INR4.7b (9% below our estimates).

* Gross margin at 37.9% saw a 310bp YoY expansion. This led to an EBITDA margin expanding 140bp YoY to 20.8%. This was slightly higher than our expectation of 20.4%.

* Absolute EBITDA rose 6% YoY to INR6.3b, 6% ahead of our estimate.

* Adj. PAT increased 7% YoY to INR5.5b (in line with our estimates).

* The company has identified the impact of changes in labor codes and presented the same under exception items amounting to ~INR1.3b.

* For 9MFY26, its revenue/EBITDA/PAT grew 16%/26%/26% YoY, while its margin expanded 180bp YoY to 21.4%.

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