Transcript of Q1 FY 2026-27 results Conference call held on August 06, 2026.

Ref: STEX/SECT/2026 August 11, 2026 BSE Limited, National Stock Exchange of India Limited P.J. Towers, Exchange Plaza, 5th Floor, Dalal Street, Fort, Plot No. C/1, G Block, Bandra – Kurla Complex, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 BSE Scrip Code: 500480 NSE Symbol: CUMMINSIND Sub: Transcript of Q1 FY 2026-27 Results Conference Call Dear Sir/ Madam, Pursuant to Regulation 30 read with Para A of Schedule III and Regulation 46(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and with reference to our stock exchange intimation dated July 27, 2026, regarding Q1 FY 2026-27 Results Conference Call, please find enclosed herewith transcript of the said conference call held on August 06, 2026. Kindly take this intimation on your record. Thanking you. Yours faithfully, For Cummins India Limited Vinaya A. Joshi Company Secretary & Compliance Officer Membership No.: A25096 Encl.: As above C ummins India Limited R egistered Office C ummins India Office Campus Tower A, 5th Floor, Survey No. 21, Balewadi Pune 411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investors@cummins.com CIN: L29112PN1962PLC012276 “Cummins India Limited Q1 FY27 Earnings Conference Call” August 06, 2026 MANAGEMENT: MS. SHVETA ARYA – MANAGING DIRECTOR – CUMMINS INDIA LIMITED MS. SOMA GHOSH – CHIEF FINANCIAL OFFICER – CUMMINS INDIA LIMITED Page 1 of 16 Cummins India Limited August 06, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Cummins India Limited Q1 FY27 Earnings Conference Call. We hope you all are keeping safe and healthy. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Shveta Arya, Managing Director, Cummins India Limited. Thank you, and over to you, ma'am. Shveta Arya: Thank you. Good afternoon, ladies and gentlemen. I'm Shveta Arya, Managing Director of Cummins India Limited. I hope all is well with you. Soma Ghosh, CFO of Cummins India Limited joins me on the call. Thank you for joining us today. This fiscal year has begun with solid demand across key end markets and continued order execution, reflecting the strength of our customer relationships. However, higher commodity costs and inflation remain key factors influencing margins during the quarter. Now I'd like to share the financial results of Q1 financial year '27 through this call. For the quarter ended June 30, 2026 with respect to same quarter last year. Our sales at INR3,375 crores are higher by 18% compared to INR2,859 crores in the same quarter last year. Domestic sales at INR2,854 crores are higher by 22%. Exports at INR521 crores are flat. Profit before tax before exceptional items at INR721 crores is marginally lower by 0.7%. For the quarter ended June 30, 2026, with respect to last quarter, our sales at INR3,375 crores are higher by 14% compared to INR2,963 crores recorded in the last quarter. Domestic sales at INR2,854 crores are higher by 14%. Exports at INR521 crores are higher by 16%. Profit before tax before exceptional items at INR721 crores is lower by 12%. Segment-wise breakups for the quarter ended June 30, 2026, are as follows. Domestic business, power generation domestic sales are at INR1,424 crores. That's a 35% increase over last year and 10% increase over last quarter. Distribution business sales at INR886 crores, 14% increase over last year and 16% increase over last quarter. Industrial domestic business sales are at INR458 crores. 10% increase over last year and 20% increase over last quarter. Exports. High-horsepower exports at INR296 crores are a 16% increase over last year and 37% increase over last quarter. Low horsepower exports are at INR180 crores, which is 20% decrease over last year and 2% increase over last quarter. With that, I now open the session for questions. Thank you. Moderator: Thank you very much. We'll now begin the question-and-answer session. The first question is from the line of Parikshit Kandpal from HDFC Securities. Parikshit Kandpal: Congratulations on highest ever top line, quarterly top line. So my first question is on the demand side. So given you have done such a phenomenal revenues in this quarter. So just wanted to Page 2 of 16 Cummins India Limited August 06, 2026 understand on the ground, how is the demand? How are you able to supply to the demand? Are you in any way, I mean, not able to cater to demand or losing market share to the competition because of this? Is there any capacity constraint in supplying the QSK60 or QSK95? Has the lead time increased? So just on the product side, I want to understand from you on the production side, how are you catering to demand? Are we losing out any orders because of shortage of the capacity? Shveta Arya: Thanks, Parikshit. From a demand side, I'm presuming you're asking me a question about power generation, but I will give you answer for power generation perspective. So, from a power generation perspective, demand, we continue to see strong in the market, both CPCB IV+ range and in the higher range, different segments, but still continue to see demand coming in. From a supply perspective, capacity on the higher end, there are a few players in the market, and everybody is facing the same situation as we are. Demand is outpacing supply for everyone. And we have been putting in efforts to increase capacity at those specific nodes. So largely, we are able to cater to the demand in the market. But like I said, it is a similar situation for everyone in the market in the high horsepower space, where we are continuously adding capacity and demand is outpacing the addition of capacity that we are able to do. Are we losing orders? Well, the market is very competitive. And everybody who's playing in this market tries their level best to get the orders. So losing orders is not just a function of whether we are able to supply it or not. It is a function of various other factors, customer preferences and the relationships of organizations with the customers. From our perspective, our relationships with all our end customers are very strong. Our distribution business in the aftermarket gives us the capability to cater to aftermarket needs, the reliability of our products in the market. So we see that helping us continuously. I hope that answers your question. Parikshit Kandpal: And just on the commodity, so we have seen the commodity prices, especially the pig iron going up almost on a Y-o-Y basis on a full year basis about 14% to 20%. So just wanted to understand, I mean, your earlier comment at the start of the call and even in the press release about the commodity impact on the margins. So, what kind of pricing actions we have taken, especially in Q1 and the start of Q2, so which will help us mitigate the impact on the gross margins of this commodity inflation? Shveta Arya: Yes, you're right. Commodity has been impacting. Major commodities, steel, pig iron, aluminum, copper significant increases. And commodity-related cost inflation also has been impacting the West Asia crisis, labor shortages at our supplier, all of those have impacted us in the quarter. Now yes, we have taken some price increases and price is quite dependent on market conditions and how market accepts some of the price hikes. We do continue to adjust pricing, we have taken one, and we will continue seeing how the market adjusts to this price increase and then see how best to manage the cost inflation and the price increases going forward. Page 3 of 16 Cummins India Limited August 06, 2026 Parikshit Kandpal: But do you think from Q2 onwards, we'll have the gross margins [Showing first 8,000 characters — download PDF for full document]