The selloff was swift. Cummins India Ltd. shares crashed as much as 14% on Thursday, changing hands at ₹4,109.80 in Mumbai as institutional traders dumped the industrial engine maker following a steep second-quarter earnings miss. Operating margins collapsed. Profit tumbled by more than a quarter. By midday, the rout wiped out all calendar-year gains, pushing the stock down 8% year-to-date.
Every headline metric lagged street projections. Standalone revenue from operations inched up 4.1% year-on-year to ₹3,301 crore for the September quarter of FY27, up from ₹3,171 crore during the same period last year, according to the regulatory filing. But analyst consensus had penciled in ₹3,536.5 crore—leaving a 6.66% top-line shortfall that triggered immediate unwinding across derivatives and cash desks.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) sank 27.13% year-on-year to ₹507 crore from ₹695.75 crore. The operational cash flow missed street expectations of ₹690 crore by 26.52%. Consequently, EBITDA margin contracted by 658 basis points to 15.36% from 21.94% a year earlier—falling 415 basis points short of the 19.51% analyst benchmark.
| Financial Metric | Q2 FY27 Actual | Q2 FY26 Actual | YoY Change (%) | Street Estimate | Miss vs Estimate (%) |
|---|---|---|---|---|---|
| Revenue from Operations | ₹3,301.00 Cr | ₹3,171.00 Cr | +4.10% | ₹3,536.50 Cr | -6.66% |
| EBITDA | ₹507.00 Cr | ₹695.75 Cr | -27.13% | ₹690.00 Cr | -26.52% |
| EBITDA Margin | 15.36% | 21.94% | -658 bps | 19.51% | -415 bps |
| Net Profit (PAT) | ₹467.00 Cr |
Net profit after tax slid 26.69% to ₹467 crore against ₹637 crore in the corresponding quarter last year, trailing the street forecast of ₹625.5 crore by 25.34%. Operational volumes revealed a broader deceleration. Domestic sales rose just 5% year-on-year to ₹2,692 crore, while export shipments crawled up 2% to ₹555 crore. Management confirmed that severe commodity price inflation hammered profitability, compounded by elevated freight expenses and an unfavorable product sales mix.
Institutional desks have now turned their focus toward the post-earnings management conference call. With the stock breaking critical technical support levels, market participants are looking for concrete guidance on pricing power, inventory revaluation, and whether Cummins can defend operating margins in the second half of the fiscal year.
| ₹637.00 Cr |
| -26.69% |
| ₹625.50 Cr |
| -25.34% |