Cyient DLM Q2 FY27 Results (NSE: CYIENTDLM)
Signal: Margin pressure
The read
The quarter shows a revenue recovery to ₹3,930.90 million, up 26.5% YoY, but the underlying operating trajectory weakened: operating EBITDA margin fell 778bps to 8.7% and operating EBITDA declined 33.3%, while reported PAT growth of 5.8% depended on a ₹181.95 million fair-value gain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹393.09 Cr | +26.5% | +5.2% |
| EBIT | ₹22.8 Cr | -12.2% | |
| Net profit | ₹34.01 Cr | +5.8% | |
| EPS | ₹4.28 | +4.3% | |
| EBIT margin | 8.7% |
P&L walk
Revenue increased 26.5% YoY to ₹3,930.90 million, but gross margin fell 383bps to 37.4% and operating EBITDA margin fell 778bps to 8.7%; PAT growth of 5.8% was supported by ₹181.95 million of fair-value gain in other income.
Segments
The company reports only one operating segment, electronic manufacturing services; the consolidated result is materially above standalone PAT at ₹340.14 million versus ₹193.79 million because the consolidated quarter includes a ₹181.95 million earnout fair-value gain.
Key positives
- Consolidated revenue rose 26.5% YoY to ₹3,930.90 million and 5.2% QoQ, reversing the prior-quarter revenue base of ₹3,738.00 million.
- Finance cost declined 10.4% YoY to ₹61.01 million and 8.3% QoQ despite higher reported borrowings at September 2026.
- PPE plus CWIP increased by ₹23.16 million from March 2026 while depreciation rose 6.6% in H1, indicating a clean capex-to-depreciation relationship.
- Standalone operating EBITDA grew 19.8% YoY to ₹330.09 million, although it lagged 25.1% revenue growth.
Key concerns
- Consolidated operating EBITDA fell 33.3% YoY to ₹341.70 million while revenue rose 26.5%, driving operating EBITDA margin down 778bps to 8.7%.
- Gross margin compressed 383bps YoY to 37.4% as cost of materials plus inventory adjustment rose to ₹2,460.31 million from ₹1,825.98 million; the filing does not disclose the cause.
- H1 consolidated operating cash flow fell to ₹147.51 million from ₹1,396.74 million despite ₹615.23 million of profit before tax, reflecting ₹517.94 million of inventory build and ₹143.13 million of contract-asset increase.
- Employee expense rose 106.1% YoY to ₹678.87 million, materially faster than revenue growth of 26.5%.
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