Cummins India share price rallies over 2.5%; here is what the company says on data centre business

Cummins India is India's leading manufacturer and distributor of diesel/natural gas engines, power generation solutions (generators, alternators), and related components for diverse sectors like automotive, marine, mining, defence, and rail. It is one of the major players in the capital goods space.

On stock exchanges, Cummins India is a part of key indices such as BSE 100, NIFTY 200 index, S&P BSE Capital Goods, and BSE Industrials.

How shares have performed

Being a large-cap stock, shares of the company have given impressive returns over the short-to-medium term.

Data show that the shares have risen over 4% over the past one month, and 37% in the past six months.

So far in 2025 (year-to-date or YTD), the stock has gained nearly 39%. In the past 12 months, the stock price has jumped over 33%.

In comparison, the benchmark NIFTY50 index has advanced 10% in the past 12 months.

In the past five years, Cummins India stock has given around 680% returns.

What the company said on data centre business

In a recent interaction with news agency PTI, Shveta Arya, Managing Director, Cummins India, said the company is seeing a "good opportunity" in data centre business, which is witnessing a significant boom driven by AI adoption and data localisation.

"Data centres have been a part of our portfolio for a while. We do see growth in data centres coming in India, so we have an important role to play," Arya told PTI during an interaction.

These centres require 99.99% uptime for customers, and they have different levels of providing backup power, the MD said.

"They have their own prime power electricity that comes to the grid or a substation, and then they use gensets for backup, which is very important for their operations to run at a 99.99% uptime. So, we definitely see a play and an opportunity for us as the data centres grow in the India market," Arya said.

It may be noted that as much as 40% of the overall power generation revenue of Cummins India during the September quarter came from data centres. The remaining were across different segments.

"We also continue to see the data centre market slowly, steadily picking up," she had said last month during the post-Q2 earnings conference call.

Macquarie on data centre business in India

According to a recent Macquarie Equity Research report, India's data centre capacity is expected to double based on under-construction capacity and may increase five times by 2030 if pipeline capacity is fast-tracked.

As per the report, India has 1.4 gigawatts (GW) of operational data centre capacity, with around 1.4 GW under construction and another about 5 GW in the planning stage.

This would be bolstered by data localisation laws, enabling regulatory environments and subsidies from governments, and rising cloud adoption, among other tailwinds, it stated.

Cummins India on the India Market

"If you look at the India market, the opportunity is really good because India has not been growing data centres at the pace at which the US or Europe have been growing," Arya said.

She, however, said Cummins India does not see the segment as the main growth driver for its business going forward.

"We have a very diversified portfolio... data centres will be a good growth driver (but) they may not be the main growth driver... We need to see the kind of data centre growth coming in the next few years for us to say it will be the main growth drive, right?" Arya said.

Today manufacturing, e-commerce, and the residential and commercial reality sectors are growing at unprecedented rates in India, she said, adding that with the way the government has come up with GST reforms 2.0 and PLI schemes and the level of private capex that is coming in, other industrial markets will also grow, she said.

"So, it's relative that if all segments are growing, then it's difficult to say that data centres will be the only main source of growth. They definitely will be a very good opportunity for us, but we have yet to see how much that pace can be faster than any other segment," Arya added.

About Cummins India

Cummins India Limited is a leading manufacturer of diesel engines and auto components. Founded in 1962, Cummins India is a part of the Cummins Group, which is a global conglomerate in the manufacturing of diesel and alternative fuel engines and generators and related technology.

The company serves customers across industries, including construction, mining, marine, rail, oil and gas, defence and power. The company’s automobile business division provides technologies such as filtration, exhaust, turbo technologies, fuel systems and lubrication for commercial vehicles. The company carries out its distribution business under the brand name Cummins Sales and Service. The company provides products, packages, services and solutions for Cummins equipment under its distribution division.

The company operates primarily in three business verticals: engine, power systems and auto ancillaries.

Cummins India Q2 FY26 Results

Cummins India reported a 41.3% year-on-year rise in net profit to ₹637 crore for the quarter ended September 2025, compared with ₹451 crore a year earlier.

Revenue from operations increased 27.2% year-on-year to ₹3,170 crore, while EBITDA climbed 44.5% to ₹695 crore. The EBITDA margin expanded to 21.9% from 19.3% in the same quarter last year.