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 technology services and notable deal wins, including 8 new logo additions and expansion in key markets.

• Sustained growth momentum across segments despite challenging macroeconomic and geopolitical conditions, supported by a strong cash position and profitability.

• 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.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2025, with leadership changes and closure of certain international branches.

Financial highlights

• DET revenue reached $167 million, up 1.9% QoQ in constant currency, with EBIT margin at 12.4% (up 25 bps QoQ); group revenue for Q3 FY26 was $207.3M, down 10.3% YoY in constant currency.

• DET normalized PAT at INR 150 crores, up 9% QoQ and 40% YoY; group normalized PAT at ₹1,361M, up 1.3% YoY.

• Free cash flow to normalized PAT conversion for DET at 158%; net cash position at INR 1,434 crores, highest in nine quarters.

• Consolidated revenue for the quarter was ₹18,485 million, down from ₹19,264 million YoY; net profit for the quarter was ₹972 million, compared to ₹1,429 million YoY.

• Exceptional item of ₹423 million recognized due to one-time increase in employee benefit provisions from new labour codes.

Outlook and guidance

• Consistent revenue growth expected for semiconductors over the next four quarters, with Kinetic Technologies integration and $100M ASIC pipeline by Q4.

• Medium-term DET EBIT margin target of 15% by Q4 FY 2027 remains on track; management expects continued growth and margin expansion.

• Acquisition of majority stake in Kinetic Technologies for up to ₹8,366 million ($93 million) announced; impact not yet reflected in results.