Cummins India shares fall 5 percent after parent withdraws 2025 guidance over tariff turmoil

During the earnings call, Cummins Inc cited a 11% on year fall in the India powergen sales in dollar terms, which translates to around 7–8% in Rupee terms, lower than what the street was estimating.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Diesel and alternate fuel engine maker Cummins India's shares fell more than 5 percent on May 5, its worst in nine months, after the parent company withdrew its 2025 guidance, owing to tariff-related uncertainties during its earnings call.

Jennifer Rumsey, Chair and CEO of Cummins Inc mentioned about an 'increasingly challenging environment' and said, “Due to growing economic uncertainty driven by tariffs we have withdrawn our full year forecast.”

During the earnings call, Cummins Inc cited a 11% on year fall in the India powergen sales in dollar terms, which translates to around 7–8% in Rupee terms, lower than what the street was estimating. However, Cummins clarified that the fall in due to a high base from last year, and not due to any demand slowdown in India.

Citing 'growing economic uncertainty', Cummins Inc said it is not providing an outlook for revenue or profitability for the rest of 2025. Still, the management sounded confident of navigating this turmoil. “Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow,” chair and CEO Rumsey said.

The engines business contributes to nearly 70 percent to Cummins India's revenue. During the December quarter, the India unit reported a 43 percent on year growth in exports at Rs 464 crore, and the company projected a double-digit revenue growth for FY25 compared to a year ago.

The Cummins India management had called export growth as 'mixed bag' during Q3FY25. "...it's a mixed bag. We continue to watch the situation. Our efforts to improve our sales in each of these regions (Middle East, Latin America) continue," Shveta Arya, MD, Cummins India had said.

"...we are in the evaluation phase of seeing the tariff impact at this point in time. What we have done in the past few months is, we spoke about it, we have made efforts to increase our exports to each of the markets that we operate in," Cummins India said on February 7, 2025.