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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Cummins IndiaNSE:CUMMINSIND -1.18%87 Gross Margin % is 35.00% as of Mar. 2026, which is 10% above its 10-year median of 31.95. GuruFocus rates NSE:CUMMINSIND with a GF Score™ of 87/100 and a GF Value™ of ₹4,375.35 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,998 Industrial Products companies, Cummins India ranks better than 71.35% on this metric.
The historical rank and industry rank for Cummins India's Gross Margin % or its related term are showing as below:
NSE:CUMMINSIND'
s Gross Margin % Range Over the Past 10 Years
Min: 29.9 Med: 31.95 Max: 35.83
Current: 35.83
During the past 13 years, the highestGross Margin % of Cummins India was 35.83%. The lowest was 29.90%. And the median was 31.95%.
NSE:CUMMINSIND's Gross Margin % is ranked better than 71.35% of 2998
companies
in the Industrial Products industry
Industry Median: 26.84
vs NSE:CUMMINSIND: 35.83
Cummins India had a gross margin of 35.00% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Cummins India was 1.50% per year.
Cummins India (NSE:CUMMINSIND) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cummins India had a gross margin of 35.00% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cummins India Gross Margin % Related Terms
Cummins India Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cummins India's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:CUMMINSIND vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Cummins India's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cummins India Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins India's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cummins India's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cummins India (NSE:CUMMINSIND) has a Gross Margin % of 35.00% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cummins India and its competitors. This is 10% above median its historical median of 31.95. Over the past decade, Cummins India's Gross Margin % has ranged from 29.90 to 35.83. According to the industry distribution chart, Cummins India ranks #859 out of 2998 companies in the Industrial Products industry, placing it in the top 28.7%.
Is Cummins India's Gross Margin % too high?
Cummins India's current Gross Margin % of 35.00% is 10% above median its 10-year median of 31.95. Over the past 10 years, this metric has ranged from a low of 29.90 to a high of 35.83. The Industrial Products industry median Gross Margin % is 26.84. Cummins India's value of 35.00% is 30.4% above this industry median. Based on the distribution chart, Cummins India ranks #859 out of 2998 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Cummins India has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Cummins India ranks #859 out of 2998 companies for Gross Margin %. This puts Cummins India in the upper half of its industry. The industry median Gross Margin % is 26.84. Cummins India's value of 35.00% is 30.4% above this benchmark. Historically, Cummins India's own Gross Margin % has ranged from 29.90 to 35.83 over the past decade. While the company's 10-year median is 31.95 vs. the industry median of 26.84, Cummins India has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.84, based on 2,998 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cummins India's current Gross Margin % of 35.00% is 30.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Cummins India and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current Gross Margin % is 35.00%, which is 10% above median its own 10-year median of 31.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cummins India stock overvalued right now?
Based on GuruFocus' analysis, Cummins India (NSE:CUMMINSIND) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹4,375.35, compared to a current price of ₹5,555.00 — trading 27% above its estimated fair value. The current Gross Margin % is 35.00%, which is 10% above median its 10-year median of 31.95 and 30.4% above the Industrial Products industry median of 26.84. Cummins India's overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Cummins India (NSE:CUMMINSIND), the current Gross Margin % is 35.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cummins India (NSE:CUMMINSIND) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins India stock appears to be overvalued.
The current stock price of ₹5,555.00 is trading 27% above its estimated GF Value™ of ₹4,375.35.
GuruFocus considers Cummins India to be Modestly Overvalued.
Key valuation signals for NSE:CUMMINSIND:
Gross Margin %: 35.00% (10% above median its 10-year median of 31.95)
GF Value™: ₹4,375.35 vs. price of ₹5,555.00 (27% above fair value)
Industry Position: 30.4% above the Industrial Products median (#859 of 2998)
No single metric tells the full story. See the NSE:CUMMINSIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cummins India Ltd designs and manufactures service engines and engages in allied activities. The company produces fuel systems, air handling, filtration, emission solutions, and electrical power generation systems in facilities across India. The company's business units are; Engines, Power Systems, Components, and Distribution. Its operating segments are; Engines and Lubes. Maximum revenue is generated from its Engines segment which manufactures engines from 60 HP for low, medium, and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment industry spanning construction and compressor.
87GF Score
Get the complete analysis for NSE:CUMMINSIND
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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