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News Topical, Digital Desk : Shares of Cummins India Limited, a leading engine and power solutions manufacturer, saw a sharp rise on Thursday. Following positive signals from the company's conference call, the stock jumped nearly 4% to around Rs 4,400. Investor confidence has been further strengthened by data center business, government tax breaks, and a strong capex outlook.
Cummins shares opened lower at ₹4,088 compared to its previous close of ₹4,202.30. However, the market sentiment changed dramatically as management provided clear and positive signals about its outlook and growth during the company's conference call
Following the conference call, the stock jumped nearly 4% to trade around ₹4,400. Looking at long-term performance, the stock has delivered impressive returns to investors. Cummins' stock has risen nearly 49% in the past year. However, since the beginning of 2026, the stock has also declined by approximately 4%. What was notable about the results? The company reported a year-over-year increase in exports of approximately 15%. This indicates that the company's international presence remains intact despite global challenges.
Guidance Changed Sentiment Management maintained its guidance for FY26. The company also stated that it expects double-digit revenue growth in FY27. The biggest positive factor is considered to be the data center business. The company says that data center-related orders and projects are expected to grow rapidly in the coming years. According to management, the data center pipeline in India currently appears strong, and positive momentum from this segment is expected to continue for the next three to four years.
What other indications were given during the conference call? The company stated that the tax breaks provided by the government to data centers in the budget are a major positive factor for them. This will accelerate new projects and increase demand for power solutions. Furthermore, the government's continued focus on infrastructure and capex will continue to support demand for Cummins products. Management also stated that the outlook for the railway and mining sectors remains strong, which is expected to improve order flow in the industrial and heavy equipment segments.
Why is FII confidence significant? Foreign investors (FIIs) have been consistently buying Cummins shares over the past four quarters. While FIIs' share was approximately 17.5% in the September quarter, it has increased to 19.43% by December 2025. This is a clear indication that major foreign investors are confident about the company's business outlook.
What does the brokerage say? Global brokerage house Nomura has maintained a BUY rating on Cummins. The brokerage has set a target price of ₹4,780 per share. According to Nomura, although the company's revenue declined by approximately 1% year-on-year, EBITDA increased by 6%. The brokerage considers the improvement in margins despite weak operating leverage as a positive. The brokerage also notes that domestic demand is being supported by a strong capex cycle. While exports may remain under some pressure in the near term due to geopolitical factors, the export outlook is seen as stable in the medium to long term. Nomura also lists the company's strong balance sheet and disciplined capital allocation as major pluses.
Growth visibility from the data centre business, supportive government stance, strong capex cycle and continued buying by FIIs have all put Cummins stock firmly back on investors' radar.
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