Multiple demand triggers to keep sales trajectory strong for Cummins India

Following changes in emission norms, Cummins India is benefitting from a broadbased demand revival in the generator segment, with demand mainly coming from sectors like real estate, manufacturing, hospitals, and, above all, data centres.

- DEVANGSHU DATTA

Early product launches and reliable aftermarket support make the company a market leader. Central Pollution Control Board (CPCB)-IV+ volumes are at 80-85 per cent of CPCB-II levels, and prices have held firm. Most projections suggest mid-teens annual revenue and net profit growth rates, or better, until 2027-28 (FY28). Domestic demand is expected to remain healthy, with a focus on high-horsepower (HHP) products. India is adding 200-300 megawatts (Mw) of data centre capacities annually, and this pace could accelerate. India's data centre capacity, which stood at 1.3 gigawatts (Gw) as of March 2025, is projected to grow to 7.5 Gw by FY30.

Exports also continue to benefit from global data centre demand. The Cummins India management is cautiously optimistic about gradual export demand recovery, despite economic and geopolitical headwinds, with associated scale and margin benefits.

In Q1FY26, the company's revenues rose 26 per cent year-on-year (Yo-Y) and exports grew 34 per cent. Domestic growth was 25 per cent.