Cummins Q2 Results Review - Healthy Performance; Sanguine Demand Momentum To Continue: IDBI Capital

IDBI Capital Report

Cummins India Ltd. delivered healthy performance in Q2 FY25 which was in line with our estimates. Revenue for the quarter was higher by 30% YoY and higher by 8% QoQ. Although volumes would have been impacted sequentially, higher realisations of the CPCB IV+ Sales drove this growth.

Gross margins dipped 220 bps QoQ to 36% owing to larger share of projects business which involves installation and commissioning of large gensets in a customized manner for big ticket orders.

The management asserted that the demand momentum continues to be healthy in both the powergen and the industrial segment. We maintain our positive stance on the stock and maintain our Buy rating with target price of Rs 4,401.

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