Cyient DLM (CYIENTDLM) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was ₹3,930.90 million, up 26.5% YoY; H1 revenue was ₹7,668.90 million, up 30.2%.

• Order book reached a record ₹28,137 million, with book-to-bill of 1.6x.

• Growth was broad-based, led by Aerospace and Industrial; Box Build revenue grew 86% YoY as the mix shifted toward higher-value integration.

• Near-term margins reflected investment in sales, strategy, capabilities and product development; management expects margin improvement as revenue scales.

Financial highlights

• Q2 EBITDA was ₹342 million, up 9.5% YoY; normalized PAT rose 25.8% to ₹158 million, excluding the earnout reversal gain.

• Q2 reported PAT was ₹340.14 million versus ₹321.45 million YoY; PBT was ₹393.13 million versus ₹364.77 million.

• H1 EBITDA grew 30.4% to ₹733 million; normalized PAT rose 60.4% to ₹321 million, while reported PAT increased 27% to ₹502.99 million.

• Q2 material costs rose 34.7% YoY to ₹2,460 million, partly reflecting mix and product-development purchases; employee costs rose 28.2% to ₹679 million.

• Q2 other income included a ₹181.95 million earnout-liability fair-value gain.

Outlook and guidance

• FY27 H2 revenue growth is expected above 30%, subject to materials availability and customer timing; H1 growth was 30.2%.

• FY27 EBITDA margin guidance is 9%-10%; management expects double-digit margins from FY28 as growth improves cost absorption. A strategic plan targets 11%-13% margins in FY27–29 and 13%-18% from FY30 onward.

• Four electronic-product programs with estimated value near $1B are expected to enter production from FY29, with fuller ramp-up from FY30; programs span seven to nine years.

• Existing unweighted pipeline is expected to support $400M-$500M of future order intake and is continuously replenished.

• Order-book conversion typically takes 18-24 months; semiconductor capital-equipment work has begun, while AI data-center and robotics opportunities remain exploratory.