# Cummins India margins hit three-year low despite revenue beat 2026-08-06T04:20:06+00:00 | India | Indian Opinion Desk Cummins India's June-quarter results beat revenue estimates but brokerages flagged the weakest gross margins in more than three years, NDTV Profit reported, as material costs rose to 66.5% of revenue from 63% a year earlier on higher commodity prices and supply chain disruption. HSBC kept a buy rating with a Rs 6,500 target, saying the margin hit was offset by otherwise solid execution, while Citi kept its own buy rating and a Rs 6,700 target, attributing the earnings miss largely to commodity inflation the company had not yet passed on to customers. JPMorgan was more cautious, holding a neutral rating with a Rs 5,882 target, and called the quarter's margin performance the weakest in ten quarters given the company's relatively limited exposure to commodities such as copper and silver. The quarter also saw managing director Shveta Arya resign effective 31 August, citing external opportunities, a departure JPMorgan said could weigh on the stock alongside the margin pressure. ## Indian Opinion Analysis The three brokerage views cited, HSBC and Citi more sanguine, JPMorgan more cautious, disagree chiefly on whether the margin compression is a one-off cost shock or a sign of a tougher earnings phase, and the report attributes each view to its named source rather than adjudicating between them. The unexpected leadership change adds a second uncertainty on top of the margin question, one the report notes but does not explain further. Whether Cummins passes higher input costs on to customers in the following quarter, and who succeeds Arya as managing director, are the concrete developments the cited brokerages will be watching next. ## Coverage - www.ndtvprofit.com Tags: Cummins India Canonical: https://indianopinion.org/cummins-q1-review-brokerages-flag-weakest-margins-in-over-three-years-check-targets/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/cummins-q1-review-brokerages-flag-weakest-margins-in-over-three-years-check-targets/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.