Cyient DLM (CYIENTDLM) Q1 26/27 earnings summary

Executive summary

• Achieved record Q1 performance with revenue at ₹3,738 million, robust profitability, and highest-ever order book of INR 25,989 million, despite geopolitical and supply chain challenges.

• Net profit for the quarter was ₹162.85 million, more than doubling year-over-year, reflecting strong operational performance and healthy business mix.

• Strategic focus on high-reliability, high-value EMS segments, with phased growth roadmap and expansion into AI infrastructure, data centers, robotics, and semiconductor capital equipment.

• Added two new clients in Industrial and Automotive segments, expanded B2S lab capacity from 6,000 to 15,000 sq ft, and achieved NADCAP certification for cable harness assembly at Mysore unit.

• Financial results reviewed and approved by the Board, with auditors issuing unmodified review reports.

Financial highlights

• Q1 FY27 revenue at ₹3,738 million, up 34.3% year-over-year; EBITDA grew 56.2% to ₹392 million, with margin improving to 10.5%.

• PAT rose 118.2% year-over-year to ₹163 million, PAT margin at 4.4%, and basic/diluted EPS at ₹2.05.

• Order backlog reached INR 25,989 million, highest in company history; book-to-bill ratio at 1.5x.

• Finance costs reduced by 29% year-over-year to ₹61.23 million due to lower working capital borrowings.

• Operation free cash flow for Q1 FY27 was negative at INR -171 million.

Outlook and guidance

• Confident in maintaining strong momentum, with continued focus on execution, margin improvement, and converting demand pipeline into sustainable value.

• Book-to-bill ratio expected to remain at 1.5x for the year; revenue growth and margin expansion anticipated from new sectors and B2S platforms over the next 12-18 months.

• Focus on expanding industry coverage from four to six sectors by FY29, targeting higher margins through new platforms and products.

• Management expects value recovery in technology investments as new products are launched.