Cyient

Cyient (CYIENT): Q2 FY27 results analysis

(quarter ended 30 Sep 2026)

All figures consolidated, ₹ crore unless stated. Results released on 22 Oct 2026 [1]. PAT in the table is the owners' share. YoY/QoQ %, margins and ratios are my calculations from reported numbers.

Sources: [1][2][3][4].

Source notes:

• Group EBIT is 10.09% per ScanX [3] and 10.2% (+83 bps YoY) per the investor presentation [4].
• Total PAT incl. minority is ₹132.5 cr. Some outlets headline "PAT +22%", which is the QoQ change on that line [5].
• Q3 FY26 PAT varies by source (₹91.8–99.5 cr) [6][7].

Quality of earnings

Revenue +25% looks strong, but PBT was flat (₹196.7 cr vs ₹196.6 cr) [1].

• Growth is mostly acquired. Organic DET revenue grew just 0.4% YoY in constant currency [8]. TAO Digital added $9.6m in its first month, and Kinetic another ~$11.9m [8].
• Other income collapsed to ₹8.6 cr from ~₹50 cr a year ago (my calculation from total income [1]). Cash went to the ₹720 cr buyback and acquisitions [9].
• Tax rate is high at ~33% (₹64 cr on ₹197 cr PBT) [1].
• Base flattered: Q2 FY26 included a ₹20.7 cr insurance-claim exceptional gain [10].

Profit missed the ₹154 cr estimate [3].

Margins (Chart 3)

DET (core services) EBIT margin: 12.1% → 12.4% → 12.4% → 13.2% → 14.2%, a 10-quarter high [8][11][12]. TAO Digital is accretive to margins [8]. Group margin is lower because of DLM and semiconductor R&D [4].

Guidance: what changed

• 15% DET EBIT margin target: reiterated for Q4 FY27 in January [11]. In July it was deferred to H1 FY28 because revenue ramped slower [12]. Q2's 14.2% puts it within reach, helped by TAO (my view).
• Order intake: highest-ever Q2 order intake; DET order intake +20.8% YoY [13][14].
• Capital moves: buyback completed, TAO closed [8]. Board approved buying the remaining 49% of Cyient Solutions and Systems [3].

Positives

• DET EBIT margin at a 10-quarter high [8]
• Record Q2 order intake [13]
• Semiconductor business growing [4]

Concerns

• Organic growth near zero [8]
• PBT flat despite 25% revenue growth [1]
• Integration risk with two acquisitions in a short span (my view)
• High tax rate and low other income [1]

Things to track in Q3 FY27

1. Organic constant-currency growth in DET
2. DET EBIT margin vs the 15% target (now H1 FY28)
3. Full-quarter TAO contribution
4. Order intake converting into revenue

Not a buy/sell recommendation. I am not a SEBI-registered analyst. Facts are sourced; opinions are labelled.

Sources [1] Equitybulls – Q2 FY27 filing detail · [2] Equitybulls – Q2 FY26 · [3] ScanX · [4] InvestyWise – presentation · [5] NewsBytes · [6] AlphaStreet – Q3 FY26 · [7] 5paisa – quarterly · [8] Investing.com – call transcript · [9] Angel One – Q4 FY26/buyback · [10] FilingReader – Q2 FY26 · [11] MOSL Q3 FY26 note (BS) · [12] Quartr – Q1 FY27 · [13] Kotak Neo · [14] InvestyWise – release · [15] DSIJ – Q4 FY26 · [16] HDFC Sky – Q2 FY26 · [17] HDFC Sec / Equitymaster

Charts:

(1) last 5 quarters revenue & total PAT [1][6][15][16];

(2) FY23–FY26 revenue & PAT [15][17] (FY24 revenue = Equitymaster total revenue);

(3) DET EBIT margin [8][11][12] and total-PAT margin (own calc.).