Cummins India Aims For Double-Digit Revenue Growth In FY26 On Strong Domestic Demand

From a domestic business perspective, the power generation business across different segments is showing demand, Arya said. "So, be it the data centres, infrastructure-related segments, residential, commercial... we are seeing broad-based demand in the power generation segment's domestic business."

The data centre segment is emerging as a key growth driver for Cummins India, with strong product acceptance and tailored solutions for customers.

In the industrial business, railways account for a healthy demand, while the construction business is maintaining the momentum seen in previous quarters. The aftermarket business also continues its upward trajectory, benefiting from strong service contracts and engine rebuilding orders, according to the MD.

The company's CPCB IV+ products, compliant with new emission norms, are seeing "good acceptance" among customers. Regarding the transition to new emission norms, Arya said the CPCB IV+ volumes have not yet fully caught up to the previous CPCB II volumes.

"Given how our economy is growing, our country's GDP is still predicted to grow at 6.5%," she said. "Our business in the power generation segment is quite related to that economic activity in the country and government expenditure."

The pricing environment for the new CPCB IV+ products has seen increased competitive intensity. "Pricing we believe will take another quarter or two to settle down," Arya said, adding that Cummins India had managed to hold its pricing so far.

She described the company's order book for the power generation and industrial businesses as "healthy". "There's a lot of velocity and especially this is the season time for power generation, so it's difficult to pin a number on it and from an export perspective, different markets are not showing us clear trends," she said.

Arya attributed this volatility to shifting orders rather than cancellations, driven by changing lead times and evolving trade agreements. "It is right shifting of orders that we see and sometimes peak movement of orders, not order cancellation," she clarified.