Cyient DLM Q2 FY27 results: net profit up 5.8% to ₹34.01 crore, revenue up 26.5%

How did Cyient DLM perform in Q2 FY27?

Cyient DLM reported consolidated revenue of ₹393.09 crore for Q2 FY27, up ₹82.46 crore or 26.5% from ₹310.63 crore in Q2 FY26. Against Q1 FY27, revenue rose ₹19.29 crore or 5.2% from ₹373.80 crore. Total income was ₹415.70 crore, up 24.7% year on year and 11.1% sequentially.

EBITDA was ₹34.17 crore in Q2 FY27, up ₹2.98 crore or 9.6% from ₹31.19 crore a year earlier, but down ₹4.99 crore or 12.7% from ₹39.16 crore in Q1 FY27. The EBITDA margin was 8.7%, down 1.3 percentage points from 10.0% and 1.8 percentage points from 10.5%.

Profit before tax rose to ₹39.31 crore from ₹36.48 crore a year earlier and ₹22.21 crore in the previous quarter. Net profit was ₹34.01 crore, up 5.8% year on year and 108.8% sequentially, while basic EPS increased to ₹4.28 from ₹4.05 and ₹2.05. On the standalone basis, revenue was ₹294.79 crore and PAT was ₹19.38 crore.

What changed in Cyient DLM's costs and profit?

Total expenses increased by ₹79.57 crore or 26.8% to ₹376.39 crore from ₹296.82 crore in Q2 FY26. Cost of materials was ₹255.87 crore, up ₹59.75 crore or 30.5%; employee cost was ₹67.89 crore, up ₹14.95 crore or 28.2%; depreciation was ₹11.37 crore, up ₹0.80 crore or 7.6%; and other expenses were ₹45 crore, up ₹1.10 crore or 2.5%. Finance costs declined ₹0.71 crore or 10.4% to ₹6.10 crore.

Other income was ₹22.61 crore, down ₹0.05 crore or 0.2% from ₹22.66 crore in Q2 FY26. The company’s investor presentation said other income included a one-off earnout reversal of ₹182 million in Q2 FY27 and ₹196 million in Q2 FY26. The filing reported no exceptional item, while tax expense was ₹5.30 crore, up ₹0.97 crore or 22.4% from ₹4.33 crore.

Against Q1 FY27, total expenses rose ₹24.53 crore or 7.0%. Cost of materials increased ₹39 crore or 18.0%, employee cost rose ₹3.46 crore or 5.4%, and other expenses increased ₹6.76 crore or 17.7%. Other income rose ₹22.34 crore from ₹0.27 crore, while tax expense fell ₹0.62 crore or 10.5% to ₹5.30 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹766.89 crore, up ₹177.83 crore or 30.2% from ₹589.06 crore in H1 FY26. Total income was ₹789.77 crore, up ₹173.87 crore or 28.2%, while profit before tax rose ₹14.94 crore or 32.1% to ₹61.52 crore.

H1 FY27 PAT was ₹50.3 crore, up ₹10.69 crore or 27.0% from ₹39.61 crore, and basic EPS was ₹6.34, up ₹1.35 or 27.1% from ₹4.99. The company’s investor presentation said the first-half revenue growth reflected a rebound over FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹1,748.43 crore, up from ₹1,642.19 crore at 31 March 2026. Total equity rose to ₹1,068.20 crore from ₹1,012.11 crore, while inventories increased to ₹701.04 crore from ₹647.33 crore and trade receivables fell to ₹305.92 crore from ₹307.31 crore.

Cash and cash equivalents were ₹82.71 crore at 30 September 2026, compared with ₹80.03 crore at 31 March 2026. Borrowings rose to ₹131.96 crore from ₹106.12 crore, and trade payables increased to ₹319.83 crore from ₹273.31 crore. H1 FY27 operating cash flow was ₹14.75 crore, compared with ₹139.67 crore in H1 FY26.

H1 FY27 investing cash flow was negative ₹17.74 crore, compared with negative ₹0.23 crore a year earlier, while financing cash flow was positive ₹6.37 crore against negative ₹114.1 crore. Capital expenditure was ₹14.34 crore in H1 FY27, lower than ₹32.54 crore in H1 FY26. The company’s presentation reported free cash flow of ₹17.2 crore for Q2 FY27.

How has Cyient DLM done over the last 8 quarters?

Revenue reached ₹444.24 crore in Q3 FY25 and fell to ₹278.43 crore in Q1 FY26, before rising in each of the next three quarters to ₹393.09 crore in Q2 FY27. PAT was highest at ₹32.15 crore in Q2 FY26 and lowest at ₹7.46 crore in Q1 FY26; Q2 FY27 PAT was ₹34.01 crore.

The EBITDA margin peaked at 13.4% in Q4 FY25 and fell to 8.7% in Q2 FY27, after 10.5% in Q1 FY27. Revenue and profit each rose year on year in each of the last two quarters. Management attributed the near-term margin pressure to investment in sales, strategy and capabilities, including sales and product-development spending.

What else did the company announce?

On 15 October 2026, the board approved the un-audited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also appointed Sandip Mishra as Senior Vice President and Chief Human Resources Officer and Senior Managerial Personnel, and approved grants of 10,000 stock units under the Cyient DLM RSU Scheme, 2023 and 2,63,400 options under the Cyient DLM ASOP Scheme 2023.

The same-day filings did not announce a dividend or a fund raise. The company also filed its Q2 FY27 investor presentation, while its press release said Altek Electronics integration had been completed and the acquired Connecticut business had been renamed Cyient DLM Electronics Inc.

What did Cyient DLM's management say?

Management maintained FY27 EBITDA margin guidance of 9-10% and expects margins in the double-digit range from FY28 onward as revenue absorbs the completed sales build. It plans no further net sales and marketing additions until quarterly revenue roughly doubles. Four electronic-products programmes were described as worth about $1 billion over 7-9 years, with full ramp from FY30.

Chairman Krishna Bodanapu said, “Our focus firmly remains on profitable growth, operating leverage and sustainable improvement in margins medium to long term.” He added that converting backlog into FY28 revenue would take margins into 10-plus percent. CEO Rajendra Velagapudi said margins were expected to remain at the higher end of the single-digit range for FY27 based on planned investments and growth initiatives.

Management identified supply shortages, longer lead times, memory-market and geopolitical uncertainty, customer-site delays and fully expensed sales and product-development costs as risks. It said AI, data-centre and robotics opportunities remain exploratory and that it planned to provide an update by FY27 year-end.

How did Cyient DLM shares react?

The filing appeared after market hours. The stock was up 0.3% after five minutes, then fell 4.4% after 15 minutes and 5.5% after 30 minutes. From the pre-results close of ₹1,031.70, it closed the reaction session down 12.8% at ₹911.00.

By the next day's close, the stock was down 27.9% from its pre-results close; by the fifth session, it was down 27.1%. The Aerospace & Defense industry median was down 1.1% by the next close and down 7.1% by the fifth session, leaving Cyient DLM 26.8 percentage points and 20.0 percentage points below the respective industry medians. The Nifty Microcap 250 was down 1.0% and 6.4% over those sessions.

Earlier results-day moves were mixed: the stock rose 11.2% on 21 July 2026 and 4.4% on 21 April 2026, then fell 0.1% on 20 January 2026, 5.7% on 14 October 2025 and 2.1% on 22 July 2025. Earlier declines also included 14.2% on 21 January 2025, 5.9% on 21 October 2024 and 1.8% on 22 July 2024.

How did other Aerospace & Defense companies do?

Nine other Aerospace & Defense companies had filed for the quarter by 4 November 2026. Their median revenue growth was 42.9%, above Cyient DLM’s 26.5% consolidated growth; six peers grew faster than Cyient DLM and two grew slower.

Of the seven peers for which profit was compared, seven reported higher profit. The peer comparison covers companies in the same industry that had filed for Q2 FY27.