Cyient Q2 FY27 Results (NSE: CYIENT)
Signal: Growth reaccelerated
The read
The revenue trajectory improved sharply to 25.5% YoY growth from 21.3% in Q1FY27, but the earnings trajectory remains weak: gross margin compressed 399bps, finance costs rose 134.6%, Semiconductors lost ₹300 million, and PAT fell 7.3%; the current ₹207 million exceptional gain also flatters reported profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,235 Cr | +25.5% | +7.3% |
| Net profit | ₹132.5 Cr | -7.3% | |
| EPS | ₹11.54 | -0.1% |
P&L walk
Revenue accelerated to ₹22,350 million, up 25.5% YoY and 7.3% QoQ, but gross margin fell to 85.5% from 89.5% as material costs rose to 15.9% of revenue from 10.5%; finance costs rose 134.6% YoY and PAT declined 7.3% to ₹1,325 million.
Segments
DET remains the largest contributor at ₹16,642 million revenue and ₹2,319 million segment result, while Semiconductors grew revenue 240.8% YoY to ₹1,847 million but reported a ₹300 million loss, making it the main drag on consolidated profitability.
Key positives
- Consolidated revenue increased 25.5% YoY to ₹22,350 million, accelerating from 21.3% YoY growth in Q1FY27.
- DET revenue rose 15.7% YoY to ₹16,642 million and generated a ₹2,319 million segment result.
- Semiconductors revenue increased 240.8% YoY to ₹1,847 million, indicating rapid scale-up despite a ₹300 million segment loss.
- Employee costs grew 16.6% YoY to ₹11,731 million, slower than revenue growth of 25.5%, reducing employee cost intensity to 52.5% from 56.5%.
Key concerns
- Gross margin compressed 399bps YoY to 85.5% as material costs increased to 15.9% of revenue from 10.5%; the filing does not disclose the reason.
- PAT declined 7.3% YoY to ₹1,325 million despite 25.5% revenue growth, showing weak earnings conversion.
- Finance costs rose 134.6% YoY to ₹373 million as consolidated borrowings increased to ₹24,797 million from ₹1,658 million at FY26-end.
- Semiconductors reported a ₹300 million loss on ₹1,847 million revenue, while its segment assets stood at ₹12,414 million.
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