Cummins India Share Price Drops 7% After Parent Suspends Revenue Guidance

The Cummins India share price fell sharply by 5.15%, trading at ₹2,789.25 at 9:40 AM on the BSE, down ₹151.50 from the previous close of ₹2,940.75. The stock opened lower at ₹2,848.95 and touched a low of ₹2,714.40 during early trading hours.  

This dip has erased most of the gains the stock had made over the past month. On a year-to-date basis, the stock is now down by 15%, reflecting the ongoing challenges faced by the company in the current market environment. 

The volume-weighted average price (VWAP) stood at ₹2,759.76. With a 52-week high of ₹4,169.50 and a low of ₹2,594.75, the stock has been under pressure recently, reflecting market concerns. 

Suspension of Guidance 

The decline comes after Cummins Inc. reported results for the March quarter and suspended its revenue guidance for the full year due to uncertainties related to the ongoing tariff war and economic conditions. 

Cummins Inc. had initially forecasted a revenue growth of 10% for the India region, which included its unlisted Joint Venture companies. However, these growth expectations have now been withdrawn due to the broader market and geopolitical uncertainties, particularly stemming from the trade war led by US President Donald Trump. 

This has had an immediate negative impact on the stock, making Cummins India the biggest loser on the Nifty 500 index on the day. 

For the March quarter, Cummins Inc. experienced a 14% year-on-year decline in revenue across all its entities, including Joint Ventures in India. This overall dip in revenue has cast a shadow over Cummins India’s prospects, especially as the company is closely linked to the PowerGen sector in India. 

PowerGen Business Struggles and Revenue Decline 

Cummins India’s PowerGen business, which contributes significantly to its revenue, faced an 11% drop in revenue for the March quarter compared to the same period last year. 

This downturn was partly due to the previous quarter’s pre-buying ahead of emission regulation changes, which led to inflated figures in the base quarter. The continued weak performance of the PowerGen segment has negatively impacted Cummins India’s financial outlook, with a direct correlation to the company’s overall revenue. 

Read More: Coforge Q4 FY25 Results: Net Profit Grows 17% YoY, Declares ₹19 Dividend. 

Conclusion 

Cummins India’s stock performance reflects broader industry challenges, especially within the PowerGen sector. With the suspension of growth guidance and revenue declines, the company faces an uphill battle to regain investor confidence. As geopolitical tensions and market volatility continue to impact global operations, Cummins India will need to adapt quickly to navigate these uncertain times. 

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