Cyient Q2 FY27 results: net profit down 7.3% to ₹132.50 crore, revenue up 25.5%

How did Cyient perform in Q2 FY27?

Cyient’s consolidated revenue was ₹2,235 crore in Q2 FY27, up ₹454 crore or 25.5% from ₹1,781 crore in Q2 FY26. Against Q1 FY27, revenue increased ₹159.30 crore or 7.7% from ₹2,076 crore. EBITDA rose to ₹312.40 crore from ₹218.80 crore a year earlier and ₹263.80 crore in the previous quarter, while the margin increased to 14.0% from 12.3% and 12.7%, respectively.

Profit before tax was ₹199.70 crore, compared with ₹201.40 crore in Q2 FY26 and ₹172.30 crore in Q1 FY27. Net profit was ₹132.50 crore, down 7.3% year on year but up 21.9% from the previous quarter; basic EPS was ₹11.54, compared with ₹11.55 and ₹9.42. Profit attributable to owners was ₹121.40 crore. On a standalone basis, revenue was ₹692 crore and net profit was ₹102.8 crore.

What changed in Cyient's costs and profit?

Total expenses rose ₹393.60 crore or 23.9% to ₹2,044 crore from ₹1,650 crore in Q2 FY26. Cost of materials increased ₹168.20 crore or 89.9%, employee cost ₹167.40 crore or 16.6%, other expenses ₹56.10 crore or 15.2%, finance costs ₹21.40 crore or 134.6%, and depreciation ₹11.80 crore or 16.3%. The filing does not state reasons for these cost movements.

Other income fell ₹41.40 crore or 82.8% to ₹8.60 crore from ₹50 crore. Q2 FY26 included a ₹20.70 crore exceptional gain, while Q2 FY27 had no exceptional item. Tax expense increased ₹10.50 crore or 19.6% to ₹64.20 crore, which contributed to net profit declining despite higher EBITDA. Against Q1 FY27, total expenses rose ₹133.60 crore, while other income increased ₹1.70 crore and tax rose ₹1.80 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹4,310.7 crore, up ₹817.9 crore or 23.4% from ₹3,492.8 crore in H1 FY26. Total income was ₹4,326.2 crore, up ₹713.7 crore or 19.8% from ₹3,612.5 crore.

Profit before tax declined to ₹372.0 crore from ₹417.5 crore, a fall of ₹45.5 crore or 10.9%. Net profit fell ₹59.1 crore or 19.7% to ₹241.2 crore from ₹300.3 crore, while basic EPS declined to ₹20.91 from ₹25.51.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹11,585 crore, compared with ₹8,324.4 crore at 31 March 2026. Total equity fell to ₹5,606.3 crore from ₹6,163.3 crore, while borrowings rose to ₹2,479.7 crore from ₹165.8 crore. Cash and cash equivalents declined to ₹1,245.4 crore from ₹1,457.5 crore; inventories rose to ₹767.7 crore from ₹652.8 crore, trade receivables to ₹1,444.7 crore from ₹1,305.5 crore, and trade payables to ₹618.5 crore from ₹536.8 crore.

H1 FY27 operating cash flow was ₹266.7 crore, compared with ₹436.8 crore in H1 FY26. Investing cash flow was negative ₹1,799.9 crore against negative ₹41.6 crore, financing cash flow was ₹1,318.0 crore against negative ₹297.2 crore, and capital expenditure was ₹65.6 crore compared with ₹64.2 crore.

How has Cyient done over the last 8 quarters?

Revenue rose in each of the last three quarters on a year-on-year basis. It reached ₹1,926.4 crore in Q3 FY25, fell to ₹1,711.8 crore in Q1 FY26, then increased to ₹2,235 crore in Q2 FY27. The latest quarter was the highest revenue point in the reported series.

Net profit peaked at ₹186.4 crore in Q4 FY25 and fell to ₹65.5 crore in Q4 FY26 before recovering to ₹132.5 crore in Q2 FY27. The EBITDA margin reached 15.9% in Q4 FY25, declined to 11.6% in Q4 FY26, and recovered to 14.0% in Q2 FY27.

Which businesses drove the quarter?

Digital, Engineering & Technology reported revenue of ₹1,664.2 crore, up 15.7% from ₹1,438.5 crore in Q2 FY26, with EBIT of ₹231.9 crore versus ₹153.8 crore and an EBIT margin of 13.9%. Design Led Manufacturing recorded revenue of ₹393.1 crore, up 26.5% from ₹310.7 crore, and EBIT of ₹42.2 crore compared with ₹40.27 crore; its EBIT margin was 10.7%.

Semiconductors reported revenue of ₹184.7 crore, up 240.8% from ₹54.2 crore, and an EBIT loss of ₹30.0 crore compared with a loss of ₹23.5 crore. The segment’s EBIT margin was negative 16.2%. Others posted revenue of ₹9.3 crore, up 8.1% from ₹8.6 crore, and an EBIT loss of ₹1.8 crore compared with ₹0.9 crore; the EBIT margin was negative 19.4%.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half-year ended 30 September 2026. It declared an interim dividend of Rs. 12 per equity share, or 240%, on par value of Rs. 5 per share. The record date is 28 October 2026, and the dividend is to be paid by 17 November 2026.

The board also approved the acquisition of the remaining 49% stake in Cyient Solutions and Systems Private Limited, making CSSPL a wholly owned subsidiary. It reconstituted the Audit, Risk Management, Stakeholders Engagement, and Environment, Social & Governance committees with effect from 22 October 2026. Sunil R Bhumralkar chairs the Audit and Risk Management committees, while Murali Yadama chairs the Stakeholders Engagement and ESG committees.

What did Cyient's management say?

Management said it remained confident of organic DET growth in H2 FY27, excluding TAO Digital, but gave no formal revenue guidance. It expects cost optimisation to retain current DET margins through FY27 despite phased wage increases in Q3 and Q4, assuming no major currency surprises, and expects the effective tax rate to remain around 28% for the rest of FY27.

Management said DET order intake reached a record $158.4 million, up nearly 21% year on year, while DLM’s book-to-bill remained above 1.6x for a sixth quarter and its order book set a new record. It said TAO Digital was margin- and PAT-accretive and estimated it would run at $100-110 million over the next 12 months.

Management said the custom ASIC pipeline exceeded $100 million, but supply constraints could delay semiconductor EBIT breakeven by one or two quarters within FY28. It also said the pace of semiconductor growth may soften in coming quarters because supply remains constrained, even though underlying AI-led demand was expected to stay strong.

Management identified foundry capacity constraints, rising wafer prices, memory shortages, product R&D requirements, phased wage increases, elevated oil prices and geopolitical stress as risks. On the recurring revenue mix, management set a long-term goal of roughly 70% sticky long-term annuity revenue and 30% project-based or short-term revenue, and estimated the business remained 20-30 percentage points away. Krishna Bodanapu said: “The EBIT loss this quarter reflects entirely our investment in product R&D. Excluding this investment, the core business is generating money at an EBIT level and is self-sustaining.”

How did Cyient shares react?

After the filing, Cyient rose 1.8% in five minutes, 2.9% in 15 minutes and 4.3% in 30 minutes. From the pre-results close of ₹1,148.0, the stock closed the reaction day 6.8% higher at ₹1,200.7. By the next day’s close, it was up 7.9% from the pre-results close; over five sessions, it was down 1.5%.

The median move for other IT Enabled Services stocks was negative 2.7% on the reaction day and the next day, and negative 2.1% over five sessions. Cyient’s excess move was 9.5 percentage points on the reaction day, 10.5 percentage points by the next day and 0.6 percentage points over five sessions. The Nifty Smallcap 250 fell 2.8% on the reaction day.

Earlier reaction-day moves were mixed: Cyient rose 0.4% on 23 July 2026, fell 6.9% on 23 April 2026 and fell 4.5% on 22 January 2026. The largest move in the listed history was a fall of 22.3% on 23 January 2025.

How did other IT Enabled Services companies do?

Among 27 IT Enabled Services companies compared for the quarter, the median revenue growth was 22.5%. Cyient’s revenue growth was higher than the median, with 16 peers growing more slowly than Cyient and 11 growing faster. Profit was compared for 24 peers, and 19 reported higher profit.