Cyient DLM (CYIENTDLM) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 saw strong double-digit margins and robust year-on-year growth in revenue and profit, aided by one-off tailwinds, operational efficiency, and a favorable business mix shift following the Altek acquisition.

• The integration of Altek Electronics is complete, enhancing U.S. presence, diversifying sector exposure, and expanding ITAR-certified capabilities, especially in Medical and Industrial segments.

• The company is well-positioned to benefit from U.S. tariffs on China, with increased OEM interest, a growing pipeline, and a hybrid India-U.S. delivery model, though a soft start is expected for FY26.

• Highest ever quarterly EBITDA and PAT since listing, driven by business mix and one-off impacts.

• Q4 PAT increased 36.5% YoY to INR 310 Mn, with PAT margin at 7.3% (up 96 bps YoY).

Financial highlights

• Q4 revenue reached INR 4,281 million, up 18.3% year-on-year; EBITDA at INR 574 million, up 50.9% year-on-year; PAT at INR 310 million, up 36.5% year-on-year.

• Full-year FY25 revenue was INR 15,196 million, a 27.5% increase year-on-year; adjusted EBITDA at INR 1,452 million, up 30.8%; PAT at INR 740 million, up 21%.

• EBITDA margin for Q4 was 13.4% (up 290 bps YoY); full-year adjusted EBITDA margin at 9.6%.

• Q4 margins benefited from one-off purchase price variance claims; sustainable margins are expected to remain in double digits.

• Positive cash generation of INR 530 million in Q4, with improvements in DIO and customer advances.

Outlook and guidance

• Management expects a soft start to FY26 but anticipates a strong year as the pipeline converts to orders.

• No formal revenue guidance provided due to business unpredictability; significant opportunities in the pipeline could alter the outlook.

• Margins are expected to remain in double digits, with further improvement as business mix shifts away from lower-margin defense contracts.

• Hybrid manufacturing model (India + US) optimizes cost, compliance, and supply chain resilience amid global tariff shifts.

• Strategic focus on large deals, sectoral diversification, and inorganic expansion in NAM and EMEA.