Following the release of its March 2025 quarter earnings and the parent company's withdrawal of its full-year outlook, Cummins India's share price dropped more than seven percent, showing Rs.2,774 per share on the National Stock Exchange (NSE).

Jennifer Rumsey, the CEO of Cummins, claims that the firm is removing its full-year projection due to the growing economic uncertainties brought on by tariffs.

“While the outlook for the remainder of the year remains unclear, we remain confident in our position and that our Destination Zero strategy is the right one. Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow,” said CEO Rumsey.

Prior projections for Cummins Inc.'s overall revenue growth is believed to range from a two percent decrease to a three percent gain. It was anticipated that PowerGen's parent business revenues would increase by five percent to 15 percent.

The company is projected a 10 percent increase in sales for the Indian market, which included its unlisted joint venture companies.

 

In light of the uncertainties caused by US President Donald Trump's tariff war, all prior guidance has now been revoked.

Compared to the same period last year, Cummins' overall revenue from its activities in India, including its joint ventures, decreased by 14 percent in the March quarter. Cummins India is the only publicly traded firm among these joint ventures.

India's PowerGen industry saw an 11 percent drop in sales from the previous year, mostly due to advance purchases made in anticipation of impending revisions to emission regulations.

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This revenue decline has a negative effect on the forecast for the listed Indian company because Cummins India's performance is directly linked to the PowerGen division.