Cyient (532175) Q3 25/26 earnings summary

Executive summary

• Group performance reported under DET, DLM, Semiconductors, and others, with DET as the primary focus for like-for-like comparisons.

• Sustained growth momentum in DET, DLM, and Semiconductors, despite macroeconomic and geopolitical challenges.

• Key milestones include acquisition of a majority stake in Kinetic Technologies, strategic role in SCL's modernization, and launch of India's first indigenous silicon platform for smart utilities.

• DET segment saw notable deal wins, 8 new logo additions, and expansion in key markets.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2025.

Financial highlights

• DET revenue for Q3 was $167 million, up 1.9% QoQ in constant currency and 3.5% in INR.

• Group revenue for Q3 FY26 was $207.3M, down 10.3% YoY in constant currency and 9% YoY in USD.

• Consolidated revenue for the quarter was ₹18,485 million, down from ₹19,264 million YoY.

• DET normalized EBIT margin at 12.4%, up 25 bps QoQ; DET PAT margin improved to 10.1% from 7.6% YoY.

• Free cash flow to normalized PAT conversion for DET at 157.6%.

Outlook and guidance

• Consistent revenue growth expected for semiconductors, with Kinetic Technologies integration and a $100M ASIC pipeline by Q4.

• DET business on track for medium-term EBIT margin target of 15% by Q4 FY 2027.

• Management expects continued growth and margin expansion, with DET on track for a strong FY26 exit.

• Company continues to monitor regulatory developments related to new labour codes for future accounting treatment.

• Semiconductor segment expected to remain loss-making in Q4, aiming for EBIT neutrality in FY 2027.