Cummins India Targets Multi-Year Double-Digit Surge: Infrastructure & Data Centers Lead the Charge

Market snapshot: Cummins India Limited (CUMMINSIND) has signaled a robust growth trajectory, projecting double-digit revenue growth for FY2026 and maintaining a similar domestic target for FY2027. This optimism follows the Union Budget 2026-27, which escalated infrastructure capital expenditure to ₹12.2 lakh crore, providing significant visibility for the power generation and industrial segments.

Summary: Cummins India expects double-digit growth through FY2026 and FY2027, bolstered by a 7.4% GDP forecast and massive infrastructure allocations in the latest Union Budget.

Key Takeaways

• FY2026 Guidance: Reconfirmed double-digit revenue growth despite near-term export volatility.
• Budget 2026 Tailwinds: The ₹12.2 lakh crore infrastructure outlay and ₹20,000 crore carbon capture allocation support long-term demand.
• Strategic Segments: High demand observed in Data Centers, Railways, and High-Horsepower (HHP) engine segments.

SAHI Perspective

While Q3 FY26 showed a marginal revenue dip of 1% to ₹3,006 crore, the underlying fundamentals remain exceptionally strong. The company's proactive transition to CPCB IV+ emission norms and its dominance in the data center power backup market position it to capture the premium end of the capex cycle. SAHI views the FY2027 domestic target as highly achievable given the 7.7% increase in total government expenditure proposed on February 1, 2026.

Closing Insight

Cummins is no longer just a proxy for power backup; it is a critical infrastructure partner for India's digital and physical expansion. Investors should watch for the impact of lower repo rates on industrial credit as a secondary catalyst.

High Performance Trading with SAHI.