Cyient Q1 net profit doubles sequentially; EBIT margin improves to 9%

Electronic Manufacturing Services (EMS) firm Cyient Ltd on Thursday (July 23) reported a 90% quarter-on-quarter increase in consolidated net profit to ₹104 crore for the first quarter of FY27, compared with ₹55 crore in the previous quarter.

Revenue rose 7.7% sequentially to ₹2,076 crore from ₹1,927 crore, while earnings before interest and taxes (EBIT) increased 20% to ₹187 crore from ₹156 crore. EBIT margin improved to 9% from 8.1% in the preceding quarter.

Cyient’s Digital, Engineering, and Technology (DET) segment reported revenue of ₹1,540 crore in Q1 FY27, registering a 2.7% quarter-on-quarter growth and 10.6% year-on-year growth. The segment’s constant currency revenue declined 0.5% sequentially and 0.9% year-on-year.

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Cyient DET reported EBIT of ₹203 crore, with an EBIT margin of 13.2%. Profit after tax (PAT) for the segment stood at ₹141 crore, up 2.1% quarter-on-quarter. The segment generated free cash flow (FCF) of ₹114 crore, with FCF to normalised PAT conversion at 80.5%.

The company said EBIT, PAT and earnings per share (EPS) for DET are normalised to exclude the impact of merger and acquisition (M&A) expenses. These include ₹14 crore of M&A expenses in Q1 FY26 and ₹71 crore in Q4 FY26.

Cyient also said its share buy-back programme was successfully completed during the quarter.

Krishna Bodanapu, Executive Vice Chairman and Managing Director, Cyient, said, "Q1 FY27 marks a strong start to the year for Cyient Group, reinforcing the underlying strength of our business and the tangible results of the investments we have made over the last few quarters.

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Cyient Semiconductors delivered a strong quarter, achieving its fifth consecutive quarter of organic growth in the core business, while successfully advancing the integration of Kinetic Technologies.

The quarter also marked the completion of a fundraise with EAAA India Alternatives Ltd (Edelweiss) at a post-money valuation of $500 million, a strong vote of confidence in our strategy and a foundation to invest in growth, scale our platform, and capitalise on a rapidly expanding pipeline.

Cyient DLM also had a strong start to the year, the highest-ever order book, healthy revenue growth, and sustained double-digit EBITDA margins, reinforcing our confidence in delivering long-term value to all our stakeholders.

Cyient DET delivered steady performance during the quarter, with good growth in key segments such as Transportation and Connectivity, healthy order intake backed by a strong pipeline, and continued investments in strengthening our AI capabilities to drive scalable, domain-led growth."

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Sukamal Banerjee, Executive Director and Chief Executive Officer, Cyient, said, "Q1 FY27 was a quarter of satisfactory growth over broad segments of the business. EBIT rose to 13.2%, up 79 basis points over the last quarter, order intake grew 5.3% year-on-year, and Transportation and Mobility delivered its fifth straight quarter of growth.

Our large-deal engine is building real momentum, with the highest pipeline in the last 12 quarters. That momentum comes from focusing on our lifecycle engineering capabilities, which opens up a far larger market for us.

Our M&A strategy was a promise to move on this opportunity, and this quarter we delivered the first step. We announced our agreement to acquire TAO Digital Solutions. It brings us real strength in data and software engineering and gives our customers a partner who can make AI adoption real and keep it running reliably in production."

Shares of Cyient Ltd ended at ₹832.00, down by ₹10.90, or 1.29%, on the BSE.

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