Cyient (532175) Q2 26/27 earnings summary

Executive summary

• Q2 group revenue reached $233.9m, up 15.3% YoY in constant currency; normalized EBIT margin rose to 10.2%, while reported net profit was ₹1,325m versus ₹1,429m YoY.

• DET achieved its highest EBIT in 10 quarters, and Q2 order intake was a record $158.4m; DLM and Semiconductors sustained sequential order-book and revenue momentum.

• H1 group revenue was ₹43,107m, up from ₹34,928m YoY; management expressed confidence in H2 growth.

Financial highlights

• Group operating revenue was ₹22,350m, up 25.5% YoY; revenue was $233.9m, up 15.3% YoY in constant currency.

• Group normalized EBIT was ₹2,284m versus ₹1,673m YoY; normalized EBIT margin was 10.2% versus 9.4%.

• DET revenue was $174.2m; organic revenue was $164.5m, up 1.6% QoQ and 0.4% YoY. DET EBIT was ₹2,366m, with a 14.2% margin.

• DET Q2 order intake reached a record $158.4m, up nearly 21% YoY; technology order intake was up 39.7% YoY.

• Reported Q2 net profit was ₹1,325m versus ₹1,429m YoY; normalized PAT including minority interest and associate share was ₹1,214m versus ₹1,275m, and basic EPS was ₹11.54 versus ₹11.55.

Outlook and guidance

• Management expressed confidence in H2 growth, including on an organic DET basis; no formal guidance was provided.

• Cost optimization is expected to offset wage increases phased across Q3 and Q4; management aims to retain margins at current levels as the business grows.

• Semiconductor break-even remains targeted in FY 2028, potentially one or two quarters later than earlier estimates; high-voltage chip revenue is expected to become substantial during FY 2028.

• High-voltage power products for AI data centers remain on track, with R&D investment expected to begin generating revenue next fiscal year.

• The EUR 50m annual framework opportunity is expected to ramp in H2; full expected scale may take one to two years and depends on specific SOWs being booked.