Cyient DLM (CYIENTDLM) Q3 25/26 earnings summary

Executive summary

• Order momentum remains strong with a book-to-bill ratio above 1 for three consecutive quarters, reflecting sustained demand and effective commercial strategy.

• Revenue for Q3 FY26 was ₹3,033 million, down 31.7% year-over-year due to the completion of a large order and customer-specific issues.

• Margin profile continues to strengthen, with double-digit EBITDA margins and improved order book quality, driven by high-value programs and efficient execution.

• Order backlog increased to ₹23,494 million, with strong order intake of approximately ₹3,871 million.

• Diversification into automotive, industrial, and medical sectors is progressing, supporting long-term growth and resilience.

Financial highlights

• Q3 FY26 revenue was INR 3,033 million, a 31.7% year-on-year decline, mainly due to the completion of a large cyclical order in FY 2025.

• Normalized EBITDA was INR 309 million, down 14.4% year-on-year, but margin improved to 10.2%, up 207 bps year-on-year.

• Normalized PAT stood at INR 138 million, an 18.6% year-on-year decline, but PAT margin improved by 73 bps to 4.6%.

• Order book at quarter-end was INR 23.5 billion, up INR 583 million sequentially, marking three consecutive quarters of growth.

• Free cash flow reported at -₹521 million for the quarter.

Outlook and guidance

• Q4 is expected to show both sequential and year-over-year revenue growth, with positive momentum carrying into FY 2027.

• FY 2027 is projected to deliver substantial growth, with no formal guidance but strong confidence in improved performance.

• Margins are expected to remain at or above current double-digit levels, with further upside from operating leverage and improved order mix.

• Build to Spec (BTS/B2S) revenue is expected to grow from 6-7% in FY 2026 to double digits in FY 2027, supporting margin expansion.

• Focus on strengthening presence in Europe and expanding global defense business.