Cummins India Limited (NSE:CUMMINSIND) Full-Year Results: Here's What Analysts Are Forecasting For This Year

It's been a pretty great week for Cummins India Limited (NSE:CUMMINSIND) shareholders, with its shares surging 11% to ₹3,268 in the week since its latest annual results. Revenues came in 2.2% below expectations, at ₹104b. Statutory earnings per share were relatively better off, with a per-share profit of ₹72.15 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Cummins India's 20 analysts is for revenues of ₹117.0b in 2026. This would reflect a decent 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.4% to ₹76.05. Before this earnings report, the analysts had been forecasting revenues of ₹120.8b and earnings per share (EPS) of ₹82.09 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

See our latest analysis for Cummins India

Despite the cuts to forecast earnings, there was no real change to the ₹3,477 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Cummins India analyst has a price target of ₹4,559 per share, while the most pessimistic values it at ₹2,349. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Cummins India's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this to the 222 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it looks like Cummins India is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹3,477, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cummins India going out to 2028, and you can see them free on our platform here..

Even so, be aware that Cummins India is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.