Cummins India bets on local demand as Middle East conflict clouds exports

Engines maker Cummins India is banking on strong domestic demand to drive fiscal 2027 growth even as uncertainty over lasting peace in the Middle East is likely to keep exports under pressure, a top executive said.

The U.S.-Iran war has raised production, commodity and ‌logistics costs ⁠for ⁠Indian companies, and weakened export demand across several markets due to supply-chain ​challenges.

Calling the situation "uncharted territory", Managing Director Shveta Arya told Reuters that it ​was difficult to predict how the fragile U.S.-Iran peace negotiations would impact the business.


Exports, which made up about 17% of revenue ​in fiscal 2026, fell roughly 6% ⁠year-on-year in ‌the March quarter and are likely to remain ​subdued this ​fiscal, Arya said.

Still, Cummins India expects to ⁠deliver double-digit revenue growth even if exports stay flat for 2027. "We still have great growth coming in from all our domestic businesses. So we maximise on that," she said.

India's infrastructure push is lifting demand, with the federal government capital spending set to hit a record 12.2 trillion rupees ($128.90 billion) in fiscal 2027, up 11.4% on-year.

The company, ‌a unit of U.S.-based Cummins, counts state-run firms such as Indian Railways, heavy equipment maker BEML and oil explorer ONGC among its ⁠largest long-term customers.

The firm expects infrastructure projects across India, such as new airports, data centres, ports and railways to lead domestic demand.

Data centres account for about 30%-35% of its overall power generation revenue, while the commercial marine sector - tugboats, cargo-support vessels and port-related applications - could emerge as the next growth lever as government investment rises, Arya said.