Cyient DLM (CYIENTDLM) Q3 25/26 earnings summary

Executive summary

• Book-to-bill was 1.3 in Q3 and 1.56 YTD; backlog reached ₹23,494 Mn, up ₹583 Mn QoQ, with order intake of ₹3,871 Mn.

• Consolidated Q3 FY26 revenue was ₹3,033.47 Mn and net profit was ₹106.44 Mn; normalized EBITDA margin rose to 10.2%, up 207 bps YoY.

• Revenue softness was attributed to completion of a large order, customer delays, year-end holidays and tariff uncertainty; management expected Q4 sequential and YoY growth.

• Board approved unaudited standalone and consolidated results and a variation in IPO fund objects, subject to shareholder approval; Board committees were reconstituted.

Financial highlights

• Consolidated revenue was ₹3,033.47 Mn in Q3 FY26, versus ₹3,106.34 Mn in Q2 FY26 and ₹2,172.98 Mn in Q3 FY25; nine-month revenue was ₹8,924.08 Mn.

• Consolidated net profit was ₹106.44 Mn in Q3 FY26, versus ₹130.18 Mn in Q2 FY26 and ₹236.48 Mn in Q3 FY25; nine-month net profit was ₹508.41 Mn.

• Normalized EBITDA was ₹309 Mn, down 14.4% YoY; normalized PAT was ₹138 Mn, down 18.6%.

• Normalized PAT margin was 4.6%, up 73 bps YoY; reported PAT was ₹112 Mn, up 1.9%, with a 3.7% margin, up 122 bps.

• Finance costs fell 39.2% YoY to ₹61 Mn; employee costs rose 8.3% to ₹568 Mn and other expenses rose 56.1% to ₹372 Mn.

Outlook and guidance

• Q4 is expected to deliver sequential and YoY revenue growth, with positive momentum into FY27; no formal FY27 guidance was provided.

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

• Build to Spec (B2S) revenue realization commenced; B2S is expected to grow from 6–7% of revenue in FY26 to double digits in FY27.

• Priorities include expanding B2S, NPI and prototype capabilities, sales teams and large-deal pipelines, automation, digitization, global defense presence and potential inorganic expansion in Europe.