Cyient DLM Q1 FY27 Results (NSE: CYIENTDLM)
Signal: Margin expansion
The read
Strong revenue growth (+34.3% YoY) after three quarters of YoY declines, driven by EMS order recovery. EBITDA margin expanded ~470bps YoY due to operating leverage (employee cost +11.5% vs revenue +34.3%) and lower raw material cost %. PAT more than doubled (+118% YoY), but sequentially lower as Q4FY26 had elevated other income (₹51.34 lakh vs ₹2.65 lakh). First quarter of robust margin expansion after a run of quarters with margin contraction.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹373.8 Cr | +34.3% | +1.3% |
| EBIT | ₹28.33 Cr | +51.4% | |
| Net profit | ₹16.29 Cr | +118.2% | |
| EPS | ₹2.05 | +118.1% | |
| EBIT margin | 7.4% |
P&L walk
Revenue surged 34.3% YoY (to ₹3,738 lakh) after three quarters of decline, and sequential growth was modest at +1.3%. Gross margin expanded ~60bps YoY as raw material cost % fell from 61.7% to 58.0% (input cost tailwind). EBITDA margin jumped ~470bps YoY to ~11.4% as employee cost % dropped 340bps and other expenses % fell 170bps. Finance cost contracted 150bps. The sharp PAT growth (+118%) reflects both operating leverage and a lower tax rate (26.7% vs 26.1% YoY). Depreciation up 5.5% YoY, modest relative to revenue growth, supporting margin.
Segments
Company reports single operating segment (EMS); no segment breakdown.
Key positives
- Revenue rebounded to ₹3,738 lakh (+34.3% YoY), reversing the 3-quarter decline trend.
- EBITDA margin expanded ~470bps YoY to ~11.4% on operating leverage: employee cost grew only 11.5% vs revenue 34.3%.
- Finance cost down 28.9% YoY; net profit more than doubled (+118% YoY).
- EPS ₹2.05 vs ₹0.94 a year ago; no dilution.
Key concerns
- Revenue QoQ growth only +1.3%, suggesting recovery pace may be plateauing at this level.
- Other income fell sharply to ₹2.65 lakh from ₹51.34 lakh in Q4FY26 (and from ₹41.76 lakh a year ago), a normalisation that dented sequential PAT.
- Consolidated PAT margin (4.4%) is still thin despite a large YoY improvement.
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