Cummins India Share Price Slumps 7% Amid Global Uncertainty

Market Reaction

The Cummins India share price plunged over 7% on May 6, closing at ₹2,774 apiece on the National Stock Exchange (NSE).

This sharp decline followed the parent company Cummins Inc. withdrawing its full-year financial guidance amid escalating global trade tensions.

Main News

The drop in Cummins India's share price was triggered by mounting uncertainty around international tariffs, specifically those imposed by US President Donald Trump.

Cummins Inc.'s CEO, Jennifer Rumsey, retracted the forecast, citing economic unpredictability, even though the company remains committed to its long-term goals.

"While the outlook for the remainder of the year remains unclear, we remain confident in our position... and look forward to reinstating our forecast when conditions allow," said Rumsey.

The decision to withdraw guidance coincided with the company's March 2025 quarter results, further influencing investor sentiment.

Company Performance Snapshot

Revenue

• In the March quarter, total revenue from Indian operations, including joint ventures, fell by 14% year-over-year.

PowerGen Segment Impact

• The PowerGen segment, a critical business vertical for Cummins India, saw an 11% drop in revenue compared to the previous year.
• Last year's numbers had been boosted by pre-buying activity ahead of new emission norms, creating an unfavorable comparison base.

Parent Company Projections (Now Withdrawn)

• Global revenue was forecasted to range between a 2% decline and a 3% increase.
• PowerGen revenues were expected to grow 5%–15%.
• Cummins projected 10% revenue growth in India, including unlisted joint ventures.

However, all these estimates have now been officially withdrawn due to global economic turbulence.

Impact on Cummins India

As the only listed entity among Cummins' Indian joint ventures, Cummins India is significantly impacted by the revenue dip in the PowerGen segment.

The fall in Cummins India's share price reflects concerns over the company's near-term growth trajectory, especially with ongoing policy shifts in global trade.

Summary

• Cummins India's share price dropped 7% to ₹2,774 on May 6.
• Parent company Cummins Inc. withdrew full-year guidance due to tariff-related uncertainty.
• Indian revenue declined 14%, while PowerGen segment revenues fell 11% YoY.
• The impact is especially notable for Cummins India, which is closely tied to the performance of PowerGen.

As global trade dynamics remain fluid, Cummins India's share price outlook continues to hinge on both macroeconomic developments and policy stability.