IIFL Institutional Equities' Renu Baid Pugalia expects Cummins India's margin pressure to ease over the coming quarters as price increases take effect across its product portfolio.

Despite this anticipated recovery, Pugalia indicated a preference for CG Power and Industrial Solutions, ABB India, Siemens India, and Larsen & Toubro, citing the potential for stronger earnings growth relative to Cummins India. The preference reflects a broader investor shift toward companies positioned across multiple growth vectors—grid modernization, industrial automation, and digital infrastructure—rather than pure-play power generation equipment.

Pugalia also maintained a positive outlook on GE Vernova T&D India and Netweb Technologies, pointing to growing demand for artificial intelligence infrastructure as a key driver for both companies. India's data center capacity has been expanding rapidly, supported by hyperscaler investments and government recognition of data center infrastructure under infrastructure status, which improves access to financing for developers.

Cummins India, a subsidiary of US-based Cummins Inc., manufactures engines, generators, and power generation equipment. The company has faced margin headwinds in recent quarters amid rising input costs and competitive pricing pressures.

CG Power and Industrial Solutions operates in the electrical equipment space, producing transformers, switchgear, and motors. ABB India, a subsidiary of Swiss-Swedish multinational ABB Ltd., provides electrification, robotics, and automation technologies. Siemens India, part of the German industrial conglomerate, offers solutions across energy, industry, and infrastructure sectors. Larsen & Toubro is one of India's largest engineering, construction, and manufacturing conglomerates.

GE Vernova T&D India, formerly GE T&D India, focuses on transmission and distribution equipment. Netweb Technologies provides high-performance computing solutions, including servers and workstations used in AI and data center applications.

The broader capital goods and electrical equipment sector in India has seen increased investor attention driven by infrastructure spending, power sector modernization, and the global expansion of AI-related data center capacity. India's record electricity demand in recent years, coupled with renewable energy integration requiring significant grid upgrades, has reinforced the demand outlook for transmission, distribution, and electrification equipment manufacturers. The government's continued capital expenditure push and Production Linked Incentive schemes targeting electrical component manufacturing have further strengthened the sector's medium-term growth visibility.