Cummins India Q3 FY25 Results: Strong Revenue Grows 21.78%, Net Profit Up 12.99%
Business and Industry Overview
Cummins India is well known for its natural gas engines and the generator is a part of Cummins Inc., a US-based company with a global revenue of $23.6 billion. It is also a 51-per cent subsidiary of Cummins Inc. It has 21 dealerships and more than 120 dealership branch offices across India. It is a leading player in the power solutions industry, providing engines, power generators, and related technology. Its main products include diesel and alternative-fueled power generator sets with capacities up to3,0000 kW(3,7500 kVA). Cummins is widely known for its truck engines worldwide but in India, it’s famous for generators, which has accounted solely for its total revenue in the third quarter.
It has seven legal entities including three joint ventures
Cummins India Limited, Cummins Generator Technologies India Pvt. Ltd., Cummins Technologies India Pvt. Ltd., Fleetguard Filters Pvt. Ltd., Tata Cummins Pvt. Ltd., Valvoline Cummins Pvt. Ltd., and Cummins Sales & Service Pvt. Ltd. (formerly known as Cummins Svam Sales & Service Private Limited). All these legal entities operate 21 manufacturing facilities in India.
The Indian Industrial engine market has a rapid growth potential fueled by increasing energy and infrastructure sectors. It is valued at 162.94 million in 2023 and is expected to grow at a CAGR of 5.05 % by 2029. Even India’s power generation has increased by 6.80%, reaching 1452.43 billion KWh by January 2024. The main reason behind this is India’s growing industrialization and urbanization as India is marching towards Vikashit Bharat. Even the government has made a lot of efforts to increase industrialization and aims to make India a manufacturing hub. Cummins India holds a majority stake of around 62 % in the Indian engine manufacturing industry.
Latest Stock News
Cummins India’s share price increased by over 5% on February 6 after the company reported strong Q3 results, with an 11.9% year-on-year profit growth. The Board announced an interim dividend of ₹18 per share, to be paid by March 3, 2025. The stock has gained 22% over the past year.
In an exchange filing, the company stated, “The Board of Directors has approved and declared an Interim Dividend of ₹18 per equity share (900%) on 277,200,000 equity shares (Face Value ₹2 each) for the Financial Year 2024-25.” The Record Date for determining shareholder eligibility for this interim dividend is Friday, February 14, 2025, with payment scheduled by March 3, 2025.
On 6 February 2025, at the Bharat Mobility Global Expo 2025, Cummins India also announced the launch of its next-generation HELM™ (which stands for Higher Efficiency, Lower emissions, Multiple fuels) engine platforms. These platforms are expected to include a high-performance L10 engine with an advanced Hydrogen Fuel Delivery System (FDS) with Type IV on vehicle storage vessels and the innovative B6.7N natural gas engine. This shows the company’s understanding of the Indian Commercial Vehicle market and its aim of adhering to current market demand and future environmental requirements.
Business Segments
- Cummins India Limited has three business units: Engine, Power Systems, Distribution, and Integrated Supply Chain Management.
- The Engine Business produces engines ranging from 125 to 400 HP for light, medium, and heavy-duty commercial vehicles, as well as off-highway equipment used in construction and compressors, with power outputs between 49 HP and 430 HP.
- The Power Systems Business specializes in designing and manufacturing durable engines with horsepower ranging from 700 HP to 4500 HP. These engines cater to industries such as marine, railways, defence, and mining, offering high-performance solutions tailored to meet the unique requirements of each sector, ensuring reliability and efficiency across diverse applications.
The Distribution Unit distributes powertrains and powertrain-related components.
Q3 2025 Earnings
- Revenue is reported at Rs 3,086.01 crore in Q3 FY 2025, up 21.78% from Rs. 2,534.06 crore in Q3 FY 2024.
- Quarterly Net Profit at Rs. 514.00 crore in Q3 FY 2025, up 12.99% from Rs. 454.92 crore in Q3 FY 2024.
- EBITDA stands at Rs. 720.88 crore in Q3 FY 2025, up 10.64% from Rs. 651.54 crore in Q3 FY 2024.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 2,534.06 | 3,086.01 | 7,744 | 8,959 |
| Expenses | 2,072 | 2,551 | 6,502 | 7,197 |
| EBITDA | 720.88 | 651.54 | 232 | 1014 |
| OPM | 21% | 19% | 16% | 20% |
| Other Income | 99.39 | 111.39 | 406 | 566 |
| Net Profit | 119 | 514 | 1648 | 2711 |
| NPM | 4.74 | 16.84 | 21.28 | 30.26 |
| EPS | 18 | 20.15 | 62.07 | 44.46 |