Cyient DLM tanks after Q2 earnings, EBITDA margin slips to 8.7%

Cyient DLM fell 15.80% to Rs 867.35 despite reporting a 26.5% YoY and 5.16% QoQ increase in revenue to Rs 393.09 crore in Q2 FY27.

The company's normalized net profit increased 25.8% YoY to Rs 15.82 crore from Rs 12.6 crore in Q2 FY26. Reported profit after tax rose 5.79% YoY and 108.78% QoQ to Rs 34.01 crore from Rs 32.15 crore and Rs 16.29 crore, respectively. Reported PAT included a one-off gain of Rs 18.2 crore from an earnout reversal.

Profit before tax stood at Rs 39.31 crore in Q2 FY27, up 7.76% vs the year-ago quarter and 76.99% vs the previous quarter.

EBITDA increased 9.5% YoY to Rs 34.2 crore. However, the EBITDA margin declined to 8.7% from 10% a year ago, contracting 135 basis points.

Material costs rose 34.7% YoY to Rs 246 crore, while employee expenses increased 28.24% to Rs 67.89 crore. Other expenses stood at Rs 45 crore, up 2.5% YoY. Finance costs declined 10.43% YoY to Rs 6.1 crore.

The company's order book reached an all-time high of Rs 2,813.7 crore, increasing by Rs 214.8 crore QoQ. Order intake rose 11% QoQ and 15.4% YoY, while the book-to-bill ratio stood at 1.6. Free cash flow for the quarter was Rs 17.2 crore.

Aerospace and Industrial led business momentum, with Defence and Medical also contributing to growth. The company added three new customer logos across its existing businesses and emerging growth areas.

Cyient DLM's Aerospace segment accounted for 47% of Q2 FY27 revenue, followed by Industrial at 31%, Medical Technology at 14% and Defence at 7%. Auto and Others contributed 1%. Aerospace revenue grew 62% YoY, while Industrial and Defence recorded growth of 29% and 13%, respectively. Medical Technology grew 14% YoY.

By product category, printed circuit board assembly (PCBA) contributed 48% of revenue, followed by Box Build at 37%, Mechanical and Others at 13%, and Cables at 2%. PCBA revenue grew 19% YoY, while Box Build recorded 86% growth. Geographically, international markets accounted for 93% of revenue, while India contributed 7%.

During the quarter, Cyient DLM completed the integration of Altek Electronics, its acquisition in Connecticut, US, which has been renamed Cyient DLM Electronics Inc. The integration strengthens its global operating footprint and ability to serve customers across geographies.

Managing director and CEO Rajendra Velagapudi said the company remained focused on executing its record order book while investing in AI and data centre infrastructure, robotics and semiconductor capital equipment.

Cyient DLM provides design-led electronics manufacturing solutions, including design, manufacturing, testing, precision machining and certification support for customers in highly regulated industries.

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