Cummins India Hits Record High on Strong Q2 FY26 Results

Cummins India's stock reached a new record high on Friday, November 7, 2025, climbing up to 4.10% to ₹4,494.40 per share. This surge followed the company's robust performance in the September quarter of fiscal year 2026 (Q2 FY26). The company announced a Profit After Tax (PAT) of ₹638 crore, a significant 42% increase compared to the same period last year and an 8% rise from the previous quarter. Profit Before Tax (PBT) before exceptional items grew by 41% annually to ₹839 crore. Total sales for the quarter reached ₹3,122 crore, marking a 28% year-on-year (Y-o-Y) growth and a 9% increase quarter-on-quarter (Q-o-Q). Domestic sales grew by 28% Y-o-Y to ₹2,577 crore, while export sales saw a 24% Y-o-Y increase to ₹545 crore. Shveta Arya, Managing Director of Cummins India, attributed the record revenue and profit to steady market demand, improved order execution, volume leverage, and operational efficiencies. She highlighted strong macroeconomic indicators for India, projecting a 6.8% GDP growth, though noting potential headwinds for exports due to geopolitical uncertainties. Cummins India expressed cautious optimism for future growth, leveraging its diversified product portfolio aligned with emission norms and a strong focus on operational efficiency and customer satisfaction. Heading: Impact Rating: 8/10 This strong financial performance and positive outlook are likely to boost investor confidence in Cummins India, potentially driving further stock price appreciation and signaling robust health within the industrial manufacturing sector. The company's strategic positioning for future growth also suggests sustained performance. Explanation of Terms: * Profit After Tax (PAT): The profit remaining after all expenses, taxes, and interest have been deducted from the company's revenue. * Profit Before Tax (PBT): The profit a company has earned before any income taxes have been deducted. * Year-on-Year (Y-o-Y): A comparison of financial data from one period to the same period in the previous year. * Quarter-on-Quarter (Q-o-Q): A comparison of financial data from one quarter to the previous quarter. * IIP (Index of Industrial Production): A measure of the growth rate of various industries in the country. * PMI (Purchasing Managers' Index): An indicator of the economic health of the manufacturing and services sectors. * GDP (Gross Domestic Product): The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. * GST 2.0: Refers to potential improvements or refinements in India's Goods and Services Tax regime.