Company Update : Cummins India Ltd by Motilal Oswal Financial Services Ltd
Strong set of results with all-round beat
* Cummins India reported a strong set of results with a beat across all parameters.
* Revenue increased 27% YoY to INR31.7b, beating our estimate by 10%.
* Domestic sales increased 28% YoY/10% QoQ to INR25.8b (9% above our estimates), whereas export sales increased 24% YoY/4% QoQ to INR5.5b (13% above our estimates). Exports have been continuously increasing since 4QFY24.
* Gross margin at 37.0% saw a 100bp YoY expansion. This led to an EBITDA margin expansion of 260bp YoY/50bp QoQ to 21.9%. This was higher than our expectation of 20.0%.
* Absolute EBITDA increased 44% YoY/11% QoQ to INR6.9b, a 21% beat to our estimate.
* Adj. PAT increased 42% YoY to INR6.4b (21% above our estimates).
* For 1HFY26, revenue/EBITDA/PAT grew 27%/39%/37%.
* For 1HFY26, OCF/FCF grew 7%/6% YoY to INR7.4b/6.3b.
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