Tag Engineering Excellence

Cummins India Q3 FY25 Results
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 
Tata Technologies Q3 FY25 Results
Tata Technologies Q3 FY25 Results: Net Profit Marginally Declines to ₹169 Crore, Revenue Growth of 2%

Tata Technologies Ltd: Overview 

Tata Technologies is a leading global engineering and product development digital services company, specializing in providing end-to-end solutions for the automotive, aerospace, industrial machinery, and other manufacturing sectors. Founded in 1989 and headquartered in Pune, India, the company delivers services in product engineering, manufacturing engineering, and IT solutions, helping clients enhance product innovation, reduce time-to-market, and optimize costs. Tata Technologies leverages advanced technologies such as AI, IoT, and Industry 4.0 to support its clients in achieving digital transformation. With a global footprint and a focus on sustainable solutions, the company plays a pivotal role in driving innovation across the industrial landscape. The total employee headcount is 12680 employees as of Q2 FY25. The automotive segment contributes about 85% to the revenues. Tata Technologies has done Joint Venture with BMW Group. The automotive sector, a key area of focus for Tata Technologies, is undergoing a transformative phase with the rise of electric vehicles (EVs), autonomous driving, and connected vehicle technologies. Companies are investing heavily in developing EV platforms, lightweight materials, and next-generation mobility solutions, creating robust opportunities for ER&D players like Tata Technologies to support innovation and product design. The aerospace and defense industry is also contributing to growth, with increasing investments in advanced technologies such as additive manufacturing, digital twin solutions, and AI-driven design optimization. Additionally, the industrial and manufacturing sectors are adopting Industry 4.0 solutions, such as IoT-enabled machinery, predictive maintenance, and digital factories, driving demand for digital engineering services. With its strong capabilities in product lifecycle management (PLM) and smart manufacturing, Tata Technologies is well-positioned to address these needs. 

Latest Stock News 

Tata Technologies has been making significant strides in advancing its capabilities and expanding its market presence through key partnerships and contracts. The company has been selected by a prominent European firm to drive innovation in cost-efficient and sustainable solutions for next-generation vehicles, focusing on software development for embedded systems, infotainment platforms, and advanced engineering and simulation solutions. This reflects its growing expertise in the automotive sector, particularly in the areas of electric and software-defined vehicles (SDVs). In addition, Tata Technologies has entered into a multi-year contract with a European luxury automotive Original Equipment Manufacturer (OEM) to provide testing and development services for their upcoming range of electric vehicles. This deal underscores the company’s pivotal role in supporting the global shift towards electrification and sustainable mobility. 

Domestically, Tata Technologies has partnered with the Government of Tripura to enhance vocational training by upgrading 19 Industrial Training Institutes (ITIs). This initiative highlights the company’s commitment to skill development and fostering a future-ready workforce in India. At CES 2025, Tata Technologies announced a strategic partnership with Telechips to co-develop cutting-edge solutions for software-defined vehicles. This collaboration emphasizes its focus on next-gen automotive technologies and its ambition to lead in the SDV space through innovation and global partnerships. These initiatives collectively position Tata Technologies as a key player in engineering and digital transformation, enabling its clients to adopt sustainable and technologically advanced solutions across industries. 

Business Segments

  • Engineering, Research, and Development (ER&D) Services: This segment focuses on providing end-to-end product design, engineering, and development services to clients in industries such as automotive, aerospace, and industrial machinery. Tata Technologies specializes in product innovation, lightweight materials, and next-generation mobility solutions like electric vehicles and autonomous technologies. 
  • Product Lifecycle Management Solutions: Tata Technologies provides PLM consulting and implementation services, helping businesses manage the entire lifecycle of a product from conception to disposal. Its PLM solutions enable clients to streamline processes, improve collaboration, and enhance product quality. 
  • Enterprise IT Solutions: This segment offers IT solutions tailored to meet the specific needs of manufacturing enterprises. Services include ERP implementation, data analytics, smart manufacturing solutions, and Industry 4.0 initiatives. These services support digital transformation and enhance operational efficiency for global clients. 

Subsidiary Information: 

  • Tata Technologies Pte Ltd (Singapore): This subsidiary acts as a hub for Tata Technologies’ operations in the Asia-Pacific region, catering to the needs of regional clients. It focuses on providing ER&D services and digital transformation solutions, helping businesses stay competitive in emerging markets. 
  • Tata Technologies Europe Ltd (United Kingdom): This entity manages Tata Technologies’ presence in Europe, serving automotive and aerospace clients with cutting edge engineering and digital solutions. It plays a key role in expanding the company’s reach in the European market, where demand for EV and sustainability-focused engineering is growing. 
  • Tata Technologies (Thailand) Ltd: Established to serve the Southeast Asian market, this subsidiary provides engineering services and supports industries like automotive and manufacturing. It helps regional businesses adopt advanced technologies and improve product development cycles. 
  • Cambridge Technology Partners Inc. (USA): This U.S. based subsidiary focuses on delivering digital and IT services to clients in North America. It specializes in ERP solutions, cloud integration, and advanced analytics, helping businesses drive operational efficiency and digital transformation. 
  • Tata Technologies de México, S.A. de C.V. (Mexico): This subsidiary supports the company’s operations in Latin America, focusing on the automotive and manufacturing sectors. It offers a wide range of engineering and IT services tailored to meet the needs of regional clients. 

Q3 FY25 Earnings 

  • Revenue of ₹1289 crore in Q3 FY25 up by 2.2% YoY from ₹1317 crore in Q3 FY24.  
  • EBITDA of ₹234 crore in this quarter at a margin of 18% compared to 18% in Q3 FY24. 
  • Profit of ₹169 crore in this quarter compared to a ₹170 crore profit in Q3 FY24. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 1289 1317 4414 5117 
Expenses 1053 1084 3593 4176 
EBITDA 237 234 821 941 
OPM 18% 18% 19% 18% 
Other Income 31 28 88 116 
Net Profit 170 169 624 679 
NPM 13.2% 12.8% 14.1% 13.3% 
EPS 4.2 4.16 15.4 16.8