Cummins India has just rolled out its new Battery Energy Storage System (BESS), but the headline-grabbing launch feels more like a smoke screen than a strategy. While Upstox reported a modest 1.65% bump in share price, the timing and tone suggest a PR push aimed at masking deeper problems.
Battery hype – diesel reality
The company is pitching BESS as a step toward decarbonisation and net-zero by 2070 – but Cummins’ Q4 FY25 results tell a different story. Net profit is down 7.2%, EBITDA margins have shrunk from 23.5% to 21.2%, and there’s no clear revenue forecast for BESS. It reads less like innovation and more like image control.
Still hooked on diesel
In its recent Magazine edition, Cummins quietly reassures customers in internal newsletters that there’s plenty of life left in diesel. The contradiction is stark – a public nod to green energy while privately clinging to fossil fuel profits. The BESS launch is being amplified across newswires, but diesel remains the core business.
No substance behind the spin
There are no disclosed buyers, deployment timelines or commercial scale for BESS. It’s a product in search of a market – and a press release in search of distraction. With only 6.1% revenue growth in the quarter and shrinking margins, Cummins needs a win. This wasn’t it.
A pattern repeats
We’ve seen this before – flashy sustainability claims, minor product rollouts, and a loyal diesel-first customer base kept calm with targeted PR. But markets are watching more closely now. Investors expect more than hopeful slogans and hollow milestones.
Conclusion
The BESS launch might grab a few headlines, but it doesn’t move the needle. Until Cummins can show credible transition plans and real clean-tech delivery, this battery play feels more like a bluff than a breakthrough.
Lee Thompson – Founder, The Cummins Accountability Project