Cyient (532175) Q2 25/26 earnings summary

Executive summary

• Group performance reported under four segments: DET, DLM, semiconductor, and others, with DET as the main comparison base; sustained growth momentum despite macroeconomic and geopolitical challenges.

• Semiconductor business rebounded with 12% QoQ revenue growth after a strategic exit from low-value deals; EBIT remains negative due to ongoing investments, with neutrality expected by FY 2027.

• DLM segment saw 130% YoY growth in order intake for H1, double-digit margins, and new contracts in sustainable mobility and aerospace.

• Board declared an interim dividend of INR 16 per share, the highest ever, reflecting confidence in growth and cash flow.

• Notable deal wins in aerospace, energy, and automotive sectors, with new client additions and deepening of key account relationships.

Financial highlights

• DET revenue for Q2 FY26 was $164.4 million, up 1% QoQ and 0.1% YoY; group revenue for Q2 FY26 was $203.5 million, down 7.8% YoY.

• DET EBIT margin at 12.2%, up 16–20 bps QoQ; group EBIT margin at 9.4%, down 308 bps YoY.

• DET PAT at INR 1,371 million, down 16.4% YoY; group PAT at INR 1,478 million, down 28.8% YoY.

• Free cash flow to PAT conversion strong at 114% for DET and 117% at group level; group FCF at 173 crore, up 20.8% YoY.

• Consolidated revenue for Q2 FY26 was ₹17,810 million, with net profit at ₹1,429 million.

Outlook and guidance

• Consistent revenue growth expected for the next 4–5 quarters, targeting a $50 million revenue run rate and $100 million ASIC pipeline by FY 2027.

• EBIT neutrality for the semiconductor business projected in FY 2027, with organic investment capped at $15 million.

• H2 expected to be stronger than H1 in both revenue and margins for DET and group.

• Current quarter numbers may not be strictly comparable due to acquisitions in FY25 and business restructuring.