Cyient DLM (CYIENTDLM) Q1 25/26 earnings summary

Executive summary

• Record Q1 FY26 order intake of ₹5,150M lifted backlog to ₹21,318M; nearly 50% of intake is executable in FY26.

• Revenue rose 8.0% YoY to ₹2,784.27M; EBITDA increased 25.3% to ₹251M, while net profit declined 29.6% to ₹74.63M.

• Consolidated free cash flow was ₹802M, marking the third consecutive quarter of positive cash generation.

• Rajendra Velagapudi’s appointment as Managing Director and CEO is to be confirmed through a postal ballot.

Financial highlights

• EBITDA margin expanded 125 bps YoY to 9.0%, supported by improved mix and marginally higher volumes.

• PAT fell to ₹74.63M from ₹105.96M; lower other income and higher depreciation and amortization contributed to the decline.

• Basic EPS declined to ₹0.94 from ₹1.34 in Q1 FY25.

• Employee and other expenses rose 76.2% and 135.0% YoY, partly reflecting inclusion of US operations.

Outlook and guidance

• Book-to-bill is expected to remain above 1x in FY26; double-digit EBITDA margin is expected for the year, with a five-year revenue CAGR target of 30%.

• Nearly 50% of Q1 order intake is executable in FY26; two major B2S orders were in finalization stages.

• Growth priorities include power electronics, sensing and IoT, US Defense entry using ITAR certification, and expansion in EV, ADAS, Medical and Industrial markets.

• Two accounts added in the prior year have visibility to become multi-million-dollar accounts within 12 months.