Revenue and Profit Growth
Over the past six years, Cummins India’s net sales have shown a strong upward trend, rising from ₹5,697 crores in March 2019 to ₹10,391 crores in March 2025. This represents an impressive compound growth trajectory, with a notable acceleration post-2021. The company’s operating profit margin (excluding other income) has also improved steadily, reaching 20.35% in the latest fiscal year, up from 15.62% in 2019. This margin expansion reflects effective cost management and operational efficiencies despite rising raw material costs.
Operating profit (PBDIT) excluding other income surged from ₹869 crores in 2019 to over ₹2,080 crores in 2025, while total operating profit including other income climbed to ₹2,527 crores. Profit before tax increased significantly, reaching ₹2,326 crores in 2025 from ₹976 crores in 2019. Correspondingly, profit after tax rose from ₹650 crores to ₹1,733 crores over the same period, underscoring strong bottom-line growth.
Consolidated net profit, which includes share in profit of associates, grew from ₹743 crores in 2019 to nearly ₹2,000 crores in 2025. Earnings per share (EPS) followed suit, rising from ₹26.79 to ₹72.15, reflecting enhanced shareholder returns and profitability.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- - New profitability achieved
- - Growth momentum building
- - Under-the-radar entry
Cost Structure and Margins
The company’s raw material costs have naturally increased in line with sales, rising from ₹2,689 crores in 2019 to ₹5,911 crores in 2025. However, the proportionate increase in operating profit margins indicates that Cummins India has managed to control other expenses effectively. Employee costs have grown moderately, supporting the company’s expanding operations without eroding profitability. Other expenses have also increased but remain well-managed relative to revenue growth.
Balance Sheet Strength and Asset Growth
Cummins India’s total assets have expanded from ₹6,196 crores in 2020 to over ₹10,168 crores in 2025, reflecting investments in fixed assets and working capital to support growth. Net block of fixed assets increased steadily, indicating ongoing capital expenditure to enhance production capacity. The company maintains a strong equity base, with shareholder funds rising from ₹4,402 crores in 2020 to ₹7,561 crores in 2025, and book value per share improving from ₹158.80 to ₹272.78.
Importantly, the company has reduced its debt levels significantly, with total debt falling to zero in 2025 from ₹489 crores in 2020, signalling a conservative capital structure and reduced financial risk. Current assets have also grown robustly, supported by increases in cash and bank balances, sundry debtors, and inventories, which align with the company’s expanding scale of operations.
Cash Flow and Liquidity
Cash flow from operating activities has shown a positive trend, increasing from ₹600 crores in 2020 to ₹1,684 crores in 2025, reflecting strong cash generation capability. Despite significant investing activities, including capital expenditure, the company has maintained healthy liquidity. Financing activities have seen net outflows, consistent with debt repayment and shareholder returns. The closing cash and cash equivalents remain substantial, supporting operational flexibility.
Get the full story on Cummins India! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Compressors, Pumps & Diesel Engines Midcap. Make informed decisions!
- - Full research story
- - Sector comparison done
- - Informed decision support
Summary of Historical Performance
In summary, Cummins India has exhibited a strong and consistent financial performance over the last six years. The company’s revenue has nearly doubled, supported by expanding margins and disciplined cost control. Profitability metrics such as operating profit margin and PAT margin have improved steadily, reflecting operational excellence. The balance sheet is robust, with growing net worth and negligible debt, while cash flow generation remains healthy, underpinning sustainable growth.
These factors collectively position Cummins India as a financially sound and growth-oriented company within its sector, offering investors a compelling track record of value creation and resilience.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
