Cyient Overview
Cyient is a Hyderabad-based engineering and technology company. It started in 1991 as a geospatial data-conversion house and now runs a three-engine group. The largest engine is a global engineering-services business called DET (Digital, Engineering & Technology), about 80% of group revenue. It serves aerospace, rail, automotive, telecom, utilities, mining, energy and medical-technology customers. The second is Cyient DLM, a listed electronics manufacturer focused on safety-critical work. The third and newest is Cyient Semiconductors. It began as a design-services unit and is now moving into products and IP ownership: it sells custom ASICs (Application-Specific Integrated Circuits) and ASSPs (Application-Specific Standard Products), and controls Kinetic Technologies, a US power-IC maker. Since 2022 Cyient has used acquisitions to change its mix: Citec (plant engineering), TAO Digital (AI-native data engineering) and Kinetic (power chips). In India's chip-fab programme, Cyient Semiconductors qualified in December 2025 to supply and qualify technology IP for the INR 4,500 crore modernisation of the government Semi-Conductor Laboratory (SCL) in Mohali. That gives Cyient a role in fab infrastructure as well as chip design. Group revenue was INR 7,268 crore (USD 820.8 million) in FY2026. Cash generation is strong and the balance sheet held net cash at that year end.
What the company does
Cyient sells engineering work across the whole product life cycle. It designs, develops, tests, certifies, manufactures and maintains physical products, industrial plants and networks for large industrial companies. The group has three operating engines and a small "Others" bucket.
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DET — Digital, Engineering & Technology (services). Outsourced engineering R&D, embedded software, digital and data engineering, geospatial and network engineering, plant engineering and aftermarket/lifecycle services. Clients include aircraft and engine makers, rail OEMs, telecom operators, utilities, mining houses, energy companies and medical-device makers. DET produced INR 5,819 crore in FY2026, about 80% of group revenue. Since the September 2026 close of TAO Digital, DET also includes AI-native data engineering and software product engineering for automotive, hi-tech and health-tech clients.
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DLM — Design-Led Manufacturing (Cyient DLM Limited). Electronics manufacturing services: printed-circuit-board assemblies, cable harnesses, box builds and complete systems, plus design-for-manufacture. Main markets are aerospace and defence, medical, industrial, and more recently AI infrastructure and semiconductor capital equipment. Plants are in India, plus a US plant in Connecticut gained with Altek Electronics. DLM revenue was INR 1,261.5 crore in FY2026.
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Semiconductors — Cyient Semiconductors Private Limited. Turnkey custom-ASIC programmes (taking a chip from specification to production silicon), chip-design services, and ASSPs. Since April 2026 it also includes Kinetic Technologies' power-management, protection and interface ICs. Kinetic has more than 250 high-volume custom and standard products and more than 100 silicon-proven IP blocks. The business also supplies process-technology IP to India's Semi-Conductor Laboratory in Mohali.
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Others. Cyient Solutions and Systems Private Limited, which builds unmanned aerial systems, and the aerospace tooling division of Cyient Defense Services Inc. (USA).
Business and revenue model
Services (DET): Revenue comes from time-and-materials and fixed-price projects, multi-year managed-services contracts and outcome-based deals. Pricing is mostly per engineer-hour or per deliverable, with India-heavy delivery. The large-deal programme booked 24 large DET deals in FY2025 with total contract potential of USD 370.8 million. DET order intake was USD 836.1 million in FY2025. It reached a quarterly record of USD 158.4 million in Q2 FY2027, up about 21% year-on-year.
Manufacturing (DLM): Contract manufacturing revenue, recognised as orders are executed against a backlog. The order book was INR 2,598.9 crore at 30 June 2026, a record.
Semiconductors: Engineering fees during ASIC development, then per-unit chip revenue once programmes reach production. Kinetic sells standard and custom power ICs per unit. The SCL work is milestone-based technology licensing and qualification.
Mix: In FY2026 roughly 80% of group revenue was services (DET), about 17% manufacturing (DLM) and the rest semiconductors and others. With Kinetic consolidated from Q1 FY2027 and the custom-ASIC pipeline maturing, product and licensing revenue is rising. Semiconductors revenue was INR 169.7 crore in Q1 FY2027, about 8% of group revenue.
Value-chain position
Cyient sits between engineering design and production. DET does the engineering and digital work. DLM builds the electronics those designs need. Cyient Semiconductors does chip architecture, design, verification, and production management through outside foundries and assembly-and-test (OSAT) partners. The group offers DET and DLM together on some programmes. One example is a cabin-management system for Deutsche Aircraft's D328eco aircraft announced in July 2025: DET engineers it and DLM manufactures it. In semiconductors the company is fabless. The SCL Mohali mandate is its one direct involvement with fab infrastructure: it will supply and qualify three process-technology platforms for SCL's upgraded 8-inch line (RF-CMOS, high-voltage BCD/LDMOS, and CMOS image sensor).
Customer types and end markets
DET is organised around three market groups:
Transportation & Mobility: aerospace, rail and automotive.
Networks & Infrastructure: connectivity and telecom, utilities, geospatial.
Strategic Units: mining and minerals, energy, healthcare and life sciences.
Before the 2025 reorganisation, FY2025 revenue split about 38% transportation, 27% energy and sustainability and 20% connectivity. DLM serves aerospace and defence, medical, industrial and, increasingly, AI-infrastructure and semiconductor-equipment OEMs. Cyient Semiconductors serves data-centre and HPC, industrial automation, communications, automotive, consumer fast-charging, e-mobility and healthcare customers.
The company's own description and an independent view
Cyient describes itself as a global "Intelligent Engineering" company. In FY2027 it reframed the DET offer as "Intelligent Lifecycle Engineering", meaning it combines domain engineering with AI and data capabilities across a product's whole life.
Independent view: Cyient is a mid-sized Indian engineering-services firm that has been trying to escape the cycles of its legacy aerospace, rail and telecom accounts. It is doing so by (a) buying digital and data capability, with TAO Digital the main example; (b) building a semiconductor products business that could be valued separately; and (c) keeping a listed manufacturing arm. The result is a sum-of-the-parts company. The services core produces the cash. The semiconductor arm consumes it while it scales, and the market currently values it on a private funding round. DLM's value is visible through its own listing.
Strategy
Stated strategy
Strategy themes from the latest annual results and management commentary:
- "Intelligent Engineering" / "Intelligent Lifecycle Engineering." Domain engineering combined with AI, data and digital capability across the whole product life cycle. Management says lifecycle services are already sold into 58% of accounts.
Three-engine group: DET for cash and core growth, DLM for manufacturing, and Cyient Semiconductors for products and IP. Each has its own leadership and capital structure.
FY2026: "Stabilization & Transformation.": The CEO's label for FY2026, followed by a push in FY2027 on market expansion, technology adoption and efficiency.
Priority growth industries: Defence, semiconductors and AI were named in Q2 FY2027 as the largest opportunities.
India semiconductor alignment: Cyient Semiconductors' strategy is tied explicitly to the India Semiconductor Mission and to the electronics ministry's (MeitY) goals.
Initiatives in the last 24 months
| Initiative | Date | Description and targets |
|---|---|---|
| Cyient Semiconductors subsidiary | Announced July 2024; launched 8 April 2025; carve-out completed July 2025 | About USD 100 million committed by the board, with outside investors invited. Target: USD 100 million revenue run-rate in FY2027. |
| Azimuth AI investment | October 2024 | 27.3% stake in a fabless edge-AI ASIC company |
| Cyient DLM's US expansion | October 2024 | Altek purchase: ITAR-compliant US capacity |
| Leadership rebuild | February 2025 – April 2026 | New CEO, CTO, Chief People Officer, Chief Growth Officer, Head of Operations for Europe, CFO and COO |
| DET reorganisation | 2,025 | Sustainability unit disbanded; Transportation & Mobility, Networks & Infrastructure and Strategic Units created |
| Margin programme | FY2026–FY2027 | DET EBIT margin target of 15% — by Q4 FY2027 per April 2026 guidance, by H1 FY2028 per July 2026 commentary. Levers: productivity, overhead cuts, pricing and automation. Management has also outlined a margin-expansion roadmap for FY2028–FY2031. |
| Kinetic Technologies | Signed December 2025; closed April 2026 | Moves the business from services to owned power-IC products and IP |
| SCL Mohali modernisation | December 2025 | Supply and qualification of RF-CMOS, BCD/LDMOS and CMOS image-sensor technology IP for SCL's 8-inch line |
| Capital return | April–July 2026 | INR 720 crore buyback (5.76% of equity) at INR 1,125 per share |
| Semiconductor funding | May 2026 | About USD 30 million from Edelweiss funds. Uses: power-semiconductor R&D, in-house validation and test infrastructure in India, and working capital for long global programmes. |
| TAO Digital | Signed May 2026; closed September 2026 | AI-native data engineering. Expected to add about 12% to DET's revenue run-rate and to be EPS-accretive. |
| Group fundraising | April 2026 | Board agreed in principle to explore raising debt and/or equity to support growth |
| Partnerships | 2025–2026 | Autonomous construction equipment with CNH; asset management with Prospecta |
| CSSPL consolidation | October 2026 | Buy the remaining 49% of the drone venture from Blue Bird Aero Systems for a nominal INR 1 lakh |
Cyient Semiconductors subsidiary: Date: Announced July 2024; launched 8 April 2025; carve-out completed July 2025; Description and targets: About USD 100 million committed by the board, with outside investors invited. Target: USD 100 million revenue run-rate in FY2027.
Azimuth AI investment: Date: October 2024; Description and targets: 27.3% stake in a fabless edge-AI ASIC company
Cyient DLM's US expansion: Date: October 2024; Description and targets: Altek purchase: ITAR-compliant US capacity
Leadership rebuild: Date: February 2025 – April 2026; Description and targets: New CEO, CTO, Chief People Officer, Chief Growth Officer, Head of Operations for Europe, CFO and COO
DET reorganisation: Date: 2025; Description and targets: Sustainability unit disbanded; Transportation & Mobility, Networks & Infrastructure and Strategic Units created
Margin programme: Date: FY2026–FY2027; Description and targets: DET EBIT margin target of 15% — by Q4 FY2027 per April 2026 guidance, by H1 FY2028 per July 2026 commentary. Levers: productivity, overhead cuts, pricing and automation. Management has also outlined a margin-expansion roadmap for FY2028–FY2031.
Kinetic Technologies: Date: Signed December 2025; closed April 2026; Description and targets: Moves the business from services to owned power-IC products and IP
SCL Mohali modernisation: Date: December 2025; Description and targets: Supply and qualification of RF-CMOS, BCD/LDMOS and CMOS image-sensor technology IP for SCL's 8-inch line
Capital return: Date: April–July 2026; Description and targets: INR 720 crore buyback (5.76% of equity) at INR 1,125 per share
Semiconductor funding: Date: May 2026; Description and targets: About USD 30 million from Edelweiss funds. Uses: power-semiconductor R&D, in-house validation and test infrastructure in India, and working capital for long global programmes.
TAO Digital: Date: Signed May 2026; closed September 2026; Description and targets: AI-native data engineering. Expected to add about 12% to DET's revenue run-rate and to be EPS-accretive.
Group fundraising: Date: April 2026; Description and targets: Board agreed in principle to explore raising debt and/or equity to support growth
Partnerships: Date: 2025–2026; Description and targets: Autonomous construction equipment with CNH; asset management with Prospecta
CSSPL consolidation: Date: October 2026; Description and targets: Buy the remaining 49% of the drone venture from Blue Bird Aero Systems for a nominal INR 1 lakh
Medium-term targets and guidance
| Item | Target |
|---|---|
| DET revenue, FY2027 | Mid- to high-single-digit organic growth (April 2026 guidance) |
| DET EBIT margin | 15% (Q4 FY2027 aspiration; later framed as H1 FY2028) |
| Cyient Semiconductors | USD 100 million revenue run-rate in FY2027; margins negative while R&D is funded |
| AI data-centre power products | Revenue expected from FY2028 |
| TAO Digital | EPS-accretive after integration and one-off costs |
DET revenue, FY2027: Target: Mid- to high-single-digit organic growth (April 2026 guidance)
DET EBIT margin: Target: 15% (Q4 FY2027 aspiration; later framed as H1 FY2028)
Cyient Semiconductors: Target: USD 100 million revenue run-rate in FY2027; margins negative while R&D is funded
AI data-centre power products: Target: Revenue expected from FY2028
TAO Digital: Target: EPS-accretive after integration and one-off costs
Products & Services
DET — Transportation & Mobility
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| Aerospace engineering | Aerostructures, engines, avionics and systems design; certification support; MRO (maintenance, repair and overhaul) and aftermarket engineering; technical publications | Commercial aircraft and engine OEMs, Tier-1 suppliers, defence primes | Built on the Pratt & Whitney relationship from 2002. Cyient was rated a Zinnov leader in aerospace engineering in 2024. |
| Avionics verification and validation | Safety-critical software testing to DO-178C, from the Certon heritage | Avionics OEMs | Includes CyFAST, an AI-powered automated system and software testing framework launched in 2022 |
| Cabin and aircraft systems | Integrated engineering-to-manufacturing programmes with DLM | Regional aircraft OEMs | Cabin-management system for Deutsche Aircraft's D328eco, announced July 2025 |
| Rail engineering | Rolling stock, signalling and train-control engineering, homologation | Global rail OEMs | Rail modernisation is a named growth driver |
| Automotive and off-highway | Embedded software, electrification, ADAS (driver-assistance) and autonomy engineering | Auto, construction and agricultural equipment OEMs | Partnership with CNH on autonomous construction equipment, expanded November 2025. TAO Digital adds automotive data engineering. |
| Unmanned aerial systems | Building, assembling, integrating and testing drones | Defence and civil users | Through CSSPL, being taken to 100% ownership |
DET — Networks & Infrastructure
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| Wireless and network engineering | RF planning, network rollout, optimisation, 5G engineering, network operations | Telecom operators and enterprises | Strengthened by Celfinet (2022). A USD 20 million-plus wireless-infrastructure deal with an Asia-Pacific operator was signed in Q1 FY2026. |
| Fibre and fixed networks | Design and engineering of fibre networks | Telecom operators, utilities | Part of the connectivity practice |
| Geospatial | Mapping, GIS, digital twins of networks, aerial and LiDAR data | Utilities, telecom, governments | The company's original business. Led Phase 1 of the TM Forum "InfraVerse" extended-reality sustainability catalyst in 2025. |
| Utilities engineering | Grid modernisation, network data, asset management | Electric, gas and water utilities | Asset-management partnership with Prospecta for heavy industries, 2026 |
DET — Strategic Units
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| Mining and minerals | Mine planning, asset-performance consulting, operational technology | Global mining houses | Deepened by Grit Consulting (2022) |
| Energy and plant engineering | Process, power and renewables plant engineering; technical documentation; information management | Energy, process and manufacturing companies | Built on Citec (2022), one of the largest independent plant-engineering capabilities in Europe |
| Healthcare and life sciences | Medical-device engineering, regulatory and quality engineering, sustenance engineering | Medical-technology OEMs | Zinnov leader in medical devices, 2024 |
DET — Digital, data and AI (cross-cutting, including TAO Digital)
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| AI and data engineering | Data platforms, data-readiness programmes, generative-AI deployment, ML operations | Automotive, hi-tech and health-tech companies | TAO Digital (closed September 2026; about USD 80 million calendar-2025 revenue; about 3,500 staff). More than 80% of TAO's revenue is data and software product engineering. |
| Digital product engineering | Cloud-native product development, quality engineering, platform management | Hi-tech and independent software vendors | TAO's delivery centres are mostly in India |
| Embedded and IoT | Firmware, edge computing, connected products | Industrial OEMs | Leader ranking in Zinnov Zones 2024 across 11 zones, including ER&D, digital engineering, semiconductors and data/AI engineering |
DLM (Cyient DLM Limited)
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| PCB assembly | High-mix, low-to-medium-volume, safety-critical assemblies | Aerospace and defence, medical, industrial | ITAR-compliant US capacity through Altek (80,000 sq ft) |
| Cable harnesses and box builds | Complete system integration and testing | Defence, industrial, rail | Order intake in FY2026 was 1.5 times revenue |
| Design-led manufacturing | Design-for-manufacture, prototyping, end-of-life management | OEMs moving supply chains to India | Strategy now emphasises AI-infrastructure and semiconductor-equipment builds |
Cyient Semiconductors
| Offering | Description and capabilities | Target customers | Notes |
|---|---|---|---|
| Turnkey custom ASIC | Specification-to-production development across analog, mixed-signal, RF and digital; managed foundry, OSAT and qualification | Hyperscale and HPC, industrial, automotive, medical | Custom-ASIC pipeline above USD 100 million (Q1 FY2027). A turnkey programme and a major engagement with a global semiconductor company were won in Q2 FY2027. |
| Power-management ICs (Kinetic Technologies) | Power conversion, display power, protection and interface ICs. More than 250 high-volume products, more than 100 silicon-proven IP blocks, more than 3 billion chips shipped. | Consumer, computing, communications, industrial, automotive | Kinetic: founded 2006, US-headquartered, R&D in Silicon Valley and Asia. Revenue USD 37 million in CY2024 and about USD 41 million in CY2025. Led by CEO Kin Shum. |
| AI data-centre power products | Custom power semiconductors for AI servers and data centres | Hyperscalers, server and power-supply makers | In R&D; revenue expected next fiscal year (FY2028) |
| Process-technology IP for fabs | Supply and qualification of RF-CMOS, BCD (high-voltage LDMOS) and CMOS image-sensor platforms, with design enablement | Semi-Conductor Laboratory (SCL), Mohali | Part of the INR 4,500 crore SCL modernisation under the India Semiconductor Mission |
| Edge-AI silicon (associate) | Edge-computing SoCs for smart cities and two- and three-wheelers | Indian and global OEMs | Through the 27.3% stake in Azimuth AI |
Product prices are not publicly disclosed for any line.
Financial Narrative
Income statement (consolidated, INR crore)
Revenue CAGR: 12.5% a year FY2022–FY2026 (INR 4,534 crore to INR 7,268 crore). Over five years from FY2021 (INR 4,133 crore) it was about 12.0%. In US dollars, FY2026 revenue was USD 820.8 million, down 4.3% in constant currency, against USD 870 million in FY2025.
Commentary. The five years split into two halves:
FY2022–FY2024, acquisition-led growth: Citec, Celfinet and Grit (2022) and the DLM ramp-up raised revenue 58% in two years. EBIT margin peaked at 14.5% and EBITDA margin at 16.5% in FY2024. Two one-off items affected the period: a legal-settlement charge of INR 46.7 crore in FY2023 and INR 67.6 crore in FY2024 in the reported accounts. Net profit to shareholders hit a record INR 682.8 crore in FY2024.
FY2025–FY2026, reset: DET revenue shrank in constant currency in FY2025 (−3%) because aerospace, connectivity and energy clients delayed discretionary programmes. The CEO changed in early 2025. In FY2026, DLM's large defence order ran off and the semiconductor carve-out cut revenue in that segment. Gross margin fell about 440 basis points from FY2023 to FY2026 because of lower utilisation, wage inflation, mix and investment in sales and AI capability. Exceptional items in FY2026 cut reported profit further. These were M&A costs and the labour-code provision (within INR 92.8 crore of other unusual items), the INR 27.8 crore goodwill impairment, and a partly offsetting INR 26.4 crore gain on investment sales. Cyient's normalised group PAT for FY2026 was INR 534 crore, down 14.1%. Reported total PAT was INR 463.0 crore. The interim dividend fell to INR 16 in FY2026, with the INR 720 crore buyback used as the main capital return.
FY2027 inflection: Q1 FY2027 group revenue was INR 2,075.7 crore (+21.3% year-on-year) and Q2 was INR 2,235 crore (+25.5%). Kinetic, TAO and DLM's recovery drove both quarters. DET organic growth stayed in low single digits while DET EBIT margin widened to 14.2% in Q2. Net profit to shareholders in Q1 FY2027 was INR 104.1 crore, down 32.3% year-on-year. The main cause was other income falling by about INR 62.8 crore after cash went to the buyback and acquisitions; excluding other income, pre-tax profit rose 13.0%. Reported Q2 FY2027 consolidated net profit was INR 132.5 crore against INR 142.9 crore a year earlier.
Recent quarters (consolidated)
In Q2 FY2027 the group's normalised EBITDA was INR 312.3 crore (14.0% margin, against 13.4% a year earlier). Normalised group EBIT margin was 10.2%, up 83 basis points.
Balance sheet (consolidated, INR crore, 31 March)
Commentary.
Debt cycle: The 2022 acquisitions moved Cyient from net cash of INR 723 crore (FY2022) to net debt of INR 423 crore (FY2023). Cash generation and the Cyient DLM IPO money (from July 2023) restored net cash of INR 1,204 crore by FY2026. FY2026 debt of INR 464 crore was mostly lease liabilities; borrowings were only about INR 199 crore.
Equity: It rose sharply in FY2024–FY2025, helped by the DLM IPO, which also created the minority interest line.
Goodwill and intangibles: reached INR 2,365 crore in FY2026, 38% of equity. They will rise again in FY2027 with Kinetic (consolidated from April 2026) and TAO Digital (from September 2026).
Cash usage in FY2027: Gross cash was about INR 1,720 crore at the end of FY2026. During FY2027 the company paid USD 85 million for Kinetic, INR 720 crore for the buyback and USD 130 million upfront for TAO (funded mainly with new debt), with up to USD 88 million more payable as earn-outs. As a result Cyient is expected to move back to a modest net-debt position during FY2027. The exact debt raised for TAO is not publicly disclosed.
Cash flow (consolidated, INR crore)
Commentary. Cash generation is the most dependable part of the Cyient story. Operating cash flow held near INR 790 crore in FY2025 and FY2026 even as profit fell. FCF conversion reached 149% of total PAT in FY2026 because working-capital discipline and non-cash exceptional charges inflated the ratio. Capital expenditure stays low at 1.3–1.5% of revenue, typical of a services-heavy model. DET alone produced INR 801 crore of FCF in FY2025 (132% of DET PAT). DET FCF was INR 225.5 crore in Q4 FY2026 (163% conversion) and INR 213.7 crore in Q2 FY2027 (139%). The INR 720 crore buyback, completed in July 2026, falls in FY2027 and is not in the table.
Ratios
Commentary. Returns on capital have more than halved since FY2022. ROIC fell from 21.0% to 9.5% and ROE from 17.2% to 7.8%. Three things caused this: acquired goodwill grew, margins compressed, and a large cash pile earned only treasury yields. The 2026 capital-allocation steps — the buyback, debt-funded M&A and a separate funding round for the semiconductor subsidiary — are partly meant to fix return on equity. Leverage stays low and interest cover comfortable, even after the TAO debt.
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Segment Overview
| Segment | Contents | Main offerings |
|---|---|---|
Digital, Engineering & Technology (DET) | Engineering services in Transportation & Mobility (aerospace, rail, automotive), Networks & Infrastructure (connectivity, utilities, geospatial) and Strategic Units (mining & minerals, energy, healthcare & life sciences). Includes TAO Digital from Q2 FY2027. | Product engineering, embedded systems, digital and data engineering, plant engineering, network engineering, geospatial, aftermarket and lifecycle services |
Design Led Manufacturing (DLM) | Cyient DLM Limited and its subsidiaries, including Cyient DLM Inc. and Altek Electronics (USA) | PCB assemblies, cable harnesses, box builds, system integration, design-for-manufacture |
Semiconductors | Cyient Semiconductors Private Limited, Cyient Semiconductors Singapore Pte. Ltd., Kinetic Technologies (74%) | Turnkey custom ASICs, ASSPs, power-management and protection ICs, chip-design services, process-technology IP |
Others | CSSPL (unmanned aerial systems) and the aerospace tooling division of Cyient Defense Services Inc. | Drones, aerospace tooling |
Segment revenue (INR Cr)
| Segment revenue (INR Cr) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Group revenue from operations | 7,147.2 | 7,360.4 | 7,268.2 |
DLM revenue | 1,191.9 | 1,519.6 | 1,261.5 |
DET revenue, current basis excluding semiconductors (INR Cr)
| DET revenue, current basis excluding semiconductors (INR Cr) | FY2025 | FY2026 |
|---|---|---|
DET revenue | 5,516 | 5,819 |
Segment growth and contribution (FY2026) | Value | — |
DET revenue growth, INR | +5.5% | — |
DLM revenue growth, INR | -17.0% | — |
Semiconductors revenue growth | -24.1% | — |
DET share of group revenue | About 80% | — |
DLM share of group revenue | About 17% | — |
DET EBIT margin (%)
| DET EBIT margin (%) | FY2024 | FY2025 |
|---|---|---|
DET EBIT margin | 16.1 | 13.5 |
Segment revenue (INR Cr) (Quarterly)
| Segment revenue (INR Cr) | Q1 FY2026 | Q1 FY2027 |
|---|---|---|
DET | 1,392.5 | 1,540.2 |
DLM | 278.4 | 373.8 |
Semiconductors | 47.2 | 169.7 |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue from operations (INR Cr) | 4,534.4 | 6,015.9 | 7,147.2 | 7,360.4 | 7,268.2 |
Revenue growth (%) | 9.7 | 32.7 | 18.8 | 3.0 | -1.3 |
Gross profit (INR Cr) | 1,556.1 | 2,086.1 | 2,423.6 | 2,293.6 | 2,204.9 |
EBITDA (INR Cr) | 738.9 | 885.0 | 1,182.6 | 1,025.0 | 814.9 |
Operating income / EBIT (INR Cr) | 630.8 | 748.7 | 1,036.1 | 876.1 | 660.0 |
Finance costs (INR Cr) | 39.3 | 84.9 | 115.0 | 92.8 | 60.8 |
Profit before tax (INR Cr) | 698.4 | 681.2 | 918.4 | 875.0 | 644.5 |
Income tax (INR Cr) | 176.1 | 166.8 | 215.6 | 226.7 | 181.5 |
Profit after tax, total (INR Cr) | 522.3 | 514.4 | 702.8 | 648.3 | 463.0 |
Minority interest (INR Cr) | 0.0 | 0.0 | 20.0 | 32.6 | 35.1 |
Net profit to Cyient shareholders (INR Cr) | 522.3 | 514.4 | 682.8 | 615.7 | 427.9 |
EPS basic (INR) | 47.75 | 47.03 | 62.24 | 55.95 | 38.78 |
EPS diluted (INR) | 47.54 | 46.71 | 61.71 | 55.51 | 38.54 |
Dividend per share (INR) | 24 | 26 | 30 | 26 | 16 |
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View Subscription PlansMargins (%)
| Margins (%) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin | 34.3 | 34.7 | 33.9 | 31.2 | 30.3 |
EBITDA margin | 16.3 | 14.7 | 16.5 | 13.9 | 11.2 |
Operating (EBIT) margin | 13.9 | 12.4 | 14.5 | 11.9 | 9.1 |
Net margin (total PAT) | 11.5 | 8.6 | 9.8 | 8.8 | 6.4 |
Effective tax rate | 25.2 | 24.5 | 23.5 | 25.9 | 28.2 |
Income Statement
| Metric (INR Cr) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 | Q2 FY2027 |
|---|---|---|---|---|---|---|
Revenue from operations | 1,711.8 | 1,781.0 | 1,848.5 | 1,926.9 | 2,075.7 | 2,235.0 |
Income Statement (Q1 FY2026–Q1 FY2027)
| Metric (INR Cr) | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 |
|---|---|---|---|---|---|
Net profit to Cyient shareholders | 154.0 | 128.0 | 91.8 | 54.8 | 104.1 |
Operating profit | 231.0 | 219.0 | 237.0 | 224.0 | 264.0 |
Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets | 4,787.3 | 6,548.1 | 7,003.6 | 7,694.6 | 8,324.4 |
Cash and equivalents | 1,215.7 | 626.0 | 490.6 | 1,071.6 | 1,458.5 |
Short-term investments | 16.2 | 72.3 | 34.7 | 53.4 | 93.5 |
Short-term borrowings | 281.6 | 400.4 | 94.2 | 111.7 | 92.4 |
Current portion of long-term debt | 42.5 | 39.3 | 99.4 | 4.4 | 28.3 |
Long-term debt | 2.3 | 493.9 | 278.3 | 98.2 | 77.8 |
Total debt including leases | 579.4 | 1,221.2 | 809.1 | 514.8 | 464.0 |
Net cash (positive) / net debt (negative) | 722.9 | -423.4 | -242.7 | 722.2 | 1,203.9 |
Total equity including minority interest | 3,113.4 | 3,463.5 | 4,556.9 | 5,760.4 | 6,163.3 |
Minority interest | -3.2 | -3.2 | 298.8 | 450.9 | 481.4 |
Goodwill | 618.5 | 1,636.3 | 1,669.2 | 1,804.0 | 1,971.7 |
Other intangible assets | 47.7 | 505.0 | 439.7 | 439.2 | 393.1 |
Current assets | 2,897.2 | 3,191.3 | 3,559.1 | 4,145.5 | 4,666.2 |
Current liabilities | 1,262.3 | 2,023.1 | 1,658.1 | 1,370.1 | 1,593.2 |
Working capital | 1,634.9 | 1,168.2 | 1,901.0 | 2,775.4 | 3,073.0 |
Book value per share (INR) | 282.5 | 313.5 | 387.4 | 482.0 | 514.3 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow | 634.5 | 553.9 | 726.1 | 789.9 | 787.4 |
Capital expenditure | 64.7 | 67.5 | 85.3 | 103.9 | 97.9 |
Free cash flow | 569.8 | 486.4 | 640.8 | 686.0 | 689.5 |
FCF to total PAT conversion (%) | 109 | 95 | 91 | 106 | 149 |
Dividends paid | 295.2 | 263.0 | 305.8 | 329.7 | 329.1 |
Share repurchases | 95.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Net cash paid for acquisitions | 22.5 | 898.9 | 155.0 | 284.4 | -8.4 |
Depreciation and amortisation (cash-flow basis) | 183.5 | 242.7 | 251.4 | 252.0 | 258.4 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Return on equity (%) | 17.2 | 15.6 | 17.5 | 12.6 | 7.8 |
Return on assets (%) | 8.5 | 8.3 | 9.6 | 7.5 | 5.2 |
Return on invested capital (%) | 21.0 | 18.0 | 18.3 | 13.2 | 9.5 |
Current ratio (x) | 2.30 | 1.58 | 2.15 | 3.03 | 2.93 |
Debt to equity (x) | 0.19 | 0.35 | 0.18 | 0.09 | 0.08 |
Net debt to EBITDA (x, negative = net cash) | -0.98 | 0.48 | 0.21 | -0.70 | -1.48 |
Interest coverage, EBIT / finance cost (x) | 16.1 | 8.8 | 9.0 | 9.4 | 10.9 |
Asset turnover (x) | 0.98 | 1.06 | 1.06 | 1.00 | 0.91 |
Dividend payout, % of attributable net profit | 56.5 | 51.1 | 44.8 | 53.5 | 76.9 |
Region revenue (INR Cr)
| Region revenue (INR Cr) | FY2025 |
|---|---|
North America | 3,156.1 |
Europe, Middle East and Africa | 2,101.3 |
Asia-Pacific including India | 2,103.0 |
Total | 7,360.4 |
Region growth, USD terms (%) | FY2025 |
North America | 7.0 |
Europe, Middle East and Africa | -9.4 |
Asia-Pacific including India | 3.5 |
Region share of revenue (%) | FY2025 |
North America | 43 |
Europe, Middle East and Africa | 29 |
Asia-Pacific including India | 28 |
Share Price History
| Period | Total share-price return (%) |
|---|---|
1 year (to 24 September 2026) | -8.4 |
3 years (to 24 September 2026) | -34.8 |
5 years (to 24 September 2026) | 3.0 |
Price Marker Details
| Price marker | Value (INR) |
|---|---|
52-week low (by September 2026) | 750.30 |
52-week high before the Q2 FY2027 results | 1,227.00 |
Close after Q2 FY2027 results (about 23 October 2026) | About 1,170 |
Buyback price (June 2026) | 1,125 |
Valuation Multiples
| Multiple | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | Current |
|---|---|---|---|---|---|---|
Price / earnings (x) | 19.6 | 21.3 | 32.4 | 22.6 | 19.4 | 32.0 |
EV / EBITDA (x) | 12.7 | 13.0 | 18.8 | 13.1 | 9.3 | 12.2 |
EV / sales (x) | 2.07 | 1.91 | 3.12 | 1.83 | 1.05 | 1.49 |
Price / book (x) | 3.29 | 3.17 | 4.85 | 2.42 | 1.35 | 1.96 |
Dividend yield (%) | 2.83 | 2.77 | 1.56 | 2.11 | 2.13 | 1.46 |
Market Valuation
| Market value (INR Cr) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Market capitalisation | 10,250 | 10,975 | 22,107 | 13,912 | 8,298 |
Enterprise value | 9,390 | 11,463 | 22,260 | 13,448 | 7,609 |
Analyst Ratings & Targets
| Broker | Date | Rating | Target price (INR) |
|---|---|---|---|
Emkay Global | 1 June 2026 | REDUCE | 850 |
Motilal Oswal | 23 January 2026 | SELL | 1,000 |
PL Capital (Prabhudas Lilladher) | 23 October 2026 | Raised FY2027/FY2028 DET constant-currency growth estimates to 11% and 10% (organic 1.3% and 3.7%) after the Q2 beat | — |
Dividend per share (INR)
| Dividend per share (INR) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total dividend | 24 | 26 | 30 | 26 | 16 |
Amount by Year
| Year | Amount | Detail |
|---|---|---|
FY2022 | INR 95.0 crore | Repurchased |
FY2027 | INR 720 crore | 6.4 million shares at INR 1,125, by tender offer; record date 17 June 2026; tender window 23–30 June 2026; shares extinguished 15 July 2026. Promoters did not take part. |
Analyst Conclusions
Management guidance
| Item | Guidance |
|---|---|
| DET FY2027 organic growth | Mid- to high-single-digit (April 2026); Q1 and Q2 organic run-rate in low single digits |
| DET EBIT margin | 15%, aspiration timed between Q4 FY2027 and H1 FY2028; FY2028–FY2031 expansion roadmap reiterated |
| Wage increases | Two phases in Q3 and Q4 FY2027, to be offset by cost optimisation |
| Cyient Semiconductors | USD 100 million revenue run-rate in FY2027; negative margins while R&D is funded; AI data-centre power product revenue from FY2028 |
| Cyient DLM | Growth from a record order book (INR 2,598.9 crore in June 2026; record again in Q2) |
| TAO Digital | EPS-accretive; about 12% addition to DET's revenue run-rate |
DET FY2027 organic growth: Guidance: Mid- to high-single-digit (April 2026); Q1 and Q2 organic run-rate in low single digits
DET EBIT margin: Guidance: 15%, aspiration timed between Q4 FY2027 and H1 FY2028; FY2028–FY2031 expansion roadmap reiterated
Wage increases: Guidance: Two phases in Q3 and Q4 FY2027, to be offset by cost optimisation
Cyient Semiconductors: Guidance: USD 100 million revenue run-rate in FY2027; negative margins while R&D is funded; AI data-centre power product revenue from FY2028
Cyient DLM: Guidance: Growth from a record order book (INR 2,598.9 crore in June 2026; record again in Q2)
TAO Digital: Guidance: EPS-accretive; about 12% addition to DET's revenue run-rate
Consensus direction. After Q2 FY2027, analysts expect DET constant-currency growth of about 10–11% in FY2027, almost all of it from acquisitions, with organic growth of 1–4%. They expect DET margins to keep expanding towards 15%.
Bull case
-
Margin recovery is real and has room to run. DET EBIT margin rose from 12.4% to 14.2% in two quarters, reaching the highest in ten quarters. Combined with a record USD 158.4 million of Q2 orders, it can reach 15% by H1 FY2028. That would restore DET earnings power close to FY2024's peak.
-
The semiconductor arm gets re-rated. Cyient Semiconductors grew for six quarters in a row and holds owned IP (Kinetic), a custom-ASIC pipeline above USD 100 million and a national fab role through SCL. Its USD 500 million private valuation could rise sharply if the USD 100 million run-rate is reached and AI data-centre power products launch in FY2028.
-
Capital allocation rebuilds returns. The buyback cut the share count by 5.76%. Debt-funded TAO is expected to be EPS-accretive. With the DLM recovery, ROE could rise from 7.8% (FY2026) back towards the mid-teens of FY2022–FY2024.
Bear case
-
Organic DET growth is near zero. It was 0.4% year-on-year in Q2 FY2027 after a 3% decline in FY2025. Headline growth is bought, not earned, while LTTS grew 14% in INR in FY2026.
-
Profit quality and leverage are getting worse. Reported net profit fell 32.3% in Q1 FY2027 as other income dropped. Exceptional charges recur almost every year. The balance sheet moves from net cash to debt with up to about USD 88 million of TAO earn-outs outstanding.
-
Semiconductors consume capital and carry execution risk. Margins stay negative through FY2027 and management flags supply constraints. Kinetic was bought for USD 85 million against about USD 41 million of revenue. The ambition is to compete with Monolithic Power, TI and Infineon in power ICs.
Catalysts and things to watch over the next 12 months
| Catalyst / indicator | Expected timing | What to watch |
|---|---|---|
| Q3 FY2027 results | January 2027 | DET margin holding at or above 14% despite the first wage-increase phase; first full quarter of TAO |
| Q4 FY2027 results and FY2028 guidance | April 2027 | DET organic growth guidance; progress to 15% margin; semiconductor run-rate against USD 100 million |
| CSSPL buyout completion | By about February 2027 | Plans for the drone business at 100% ownership |
| TAO earn-out milestones | FY2027–FY2029 | TAO revenue and EBITDA against earn-out conditions |
| AI data-centre power product tape-outs and design wins | FY2027–FY2028 | First product revenue in FY2028 |
| SCL Mohali qualification milestones | Ongoing | Follow-on India Semiconductor Mission work |
| Further Cyient Semiconductors funding or listing | Board agreed in principle to explore fundraising | Valuation trend from USD 500 million |
| Cyient DLM execution | Quarterly | Turning the record order book into revenue; EBITDA margin above 10% |
| Net debt and other income | Quarterly | Leverage after TAO; recovery of treasury income |
| Leadership stability | Ongoing | No further changes among the top executives |
Q3 FY2027 results: Expected timing: January 2027; What to watch: DET margin holding at or above 14% despite the first wage-increase phase; first full quarter of TAO
Q4 FY2027 results and FY2028 guidance: Expected timing: April 2027; What to watch: DET organic growth guidance; progress to 15% margin; semiconductor run-rate against USD 100 million
CSSPL buyout completion: Expected timing: By about February 2027; What to watch: Plans for the drone business at 100% ownership
TAO earn-out milestones: Expected timing: FY2027–FY2029; What to watch: TAO revenue and EBITDA against earn-out conditions
AI data-centre power product tape-outs and design wins: Expected timing: FY2027–FY2028; What to watch: First product revenue in FY2028
SCL Mohali qualification milestones: Expected timing: Ongoing; What to watch: Follow-on India Semiconductor Mission work
Further Cyient Semiconductors funding or listing: Expected timing: Board agreed in principle to explore fundraising; What to watch: Valuation trend from USD 500 million
Cyient DLM execution: Expected timing: Quarterly; What to watch: Turning the record order book into revenue; EBITDA margin above 10%
Net debt and other income: Expected timing: Quarterly; What to watch: Leverage after TAO; recovery of treasury income
Leadership stability: Expected timing: Ongoing; What to watch: No further changes among the top executives
Analyst verdict
Cyient enters FY2027 with a much better operating story than its three-year share-price fall of about 35% suggests. Its reported numbers, though, still need to prove the improvement.
The core DET business has stabilised. Order intake reached a Q2 record of USD 158.4 million, pricing has started to improve, and the EBIT margin has rebuilt to 14.2% in two quarters, the best level in ten quarters. Cash conversion was never the problem: free cash flow stayed near INR 690 crore in each of the last two years even as reported profit fell by roughly a third. With net cash of INR 1,204 crore at March 2026, management could pay for a buyback, a power-IC acquisition and a USD 218 million AI-engineering acquisition without straining the balance sheet.
The questions are about growth quality and capital intensity. DET organic growth is close to zero, and the 15.7% headline growth in Q2 FY2027 is mostly acquired. TAO's earn-outs and the new acquisition debt mean the deal must deliver for EPS to rise. The semiconductor arm is the group's most interesting asset strategically. It owns IP through Kinetic, plays a role in India's SCL fab modernisation, and has a private equity valuation of about USD 500 million. But it remains loss-making while it funds product R&D, and supply constraints are already affecting near-term growth.
On balance, Cyient is a recovery and sum-of-the-parts case, not a compounder. A fair base case has DET margins approaching 15% by H1 FY2028, low-to-mid single-digit organic growth, and steady recovery in DLM's order book and revenue. That is enough to lift ROE from 7.8% back towards the low teens, but the current P/E of about 32× on trailing earnings already prices in much of this. Re-rating beyond that probably depends on Cyient Semiconductors reaching its USD 100 million run-rate and turning its power products into design wins. A visible, separately valued path for that subsidiary would make it easier to see value the market is currently discounting. Investors should watch DET organic growth and the margin path, which are the evidence that matters most, ahead of headline revenue.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | In role since | Prior roles and background |
|---|---|---|---|
Krishna Bodanapu | Executive Vice Chairman & Managing Director | MD since 24 April 2014; Executive Vice Chairman since April 2023 | Son of the founder. Was MD & CEO 2014–2023. Executive Chairman of Cyient DLM. Born 28 August 1976 (age 50). |
Sukamal Banerjee | Executive Director & CEO | 19 February 2025 (five-year term) | CEO and board member of Xoriant (2023–2025). About 27 years at HCL Technologies, ending as Corporate Vice President for the engineering business. Born 30 December 1969 (age 56). |
Shrinivas Kulkarni | Chief Financial Officer | 1 April 2026 | CFO of Cyient DLM from January 2023, where he led its 2023 IPO and the Altek acquisition. At Cyient 2015–2023, ending as SVP for business finance, M&A and investor relations. |
Prabhakar Atla | Chief Operating Officer | 1 April 2026 | Joined Cyient in 2014 as VP Sales; CFO-designate from March 2023 and then CFO until March 2026 |
Sudheendhra Putty | Company Secretary & Compliance Officer | — | Group company secretary |
Ravi Kumar Nukala | Deputy Company Secretary | — | Signs exchange filings |
Suman Narayan | CEO, Cyient Semiconductors | April 2025 | Semiconductor-industry executive with a record of scaling businesses and ASIC development |
K.A. Prabhakaran | Senior Vice President & Chief Technology Officer | March 2025 | Leads digital, engineering and technology strategy |
Kavita Kurup | Chief People Officer & Senior Vice President | 2025 | Leads HR |
Raj Ravindranathan | Chief Growth Officer | FY2026 | Leads sales and growth |
Beatrice Lippus | Head of Operations, Europe | FY2026 | Leads European operations |
Peter Longo | Chairman, Cyient Inc. | About 2019 | Leads the US subsidiary |
Board of Directors
| Name | Category | Notes |
|---|---|---|
M.M. Murugappan | Non-Executive Chairman (non-independent) | On the board since 2001; Murugappa Group industrialist; member of the Nomination & Remuneration Committee |
B.V.R. Mohan Reddy | Founder Chairman; Non-Executive, Non-Independent | Founded the company in 1991. Re-appointment as a non-executive director after turning 75 was put to shareholders in 2026. |
Krishna Bodanapu | Executive Vice Chairman & MD | Member of the Risk Management Committee |
Sukamal Banerjee | Executive Director & CEO | — |
Vikas Sehgal | Independent Director | About 7.5 years' tenure |
Nitin Prasad | Independent Director | About 2.5 years' tenure |
Debjani Ghosh | Independent Director | Appointed 23 January 2025. Former President of NASSCOM, the Indian IT industry body. Born 2 June 1966 (age 60). Member of the Nomination & Remuneration Committee. |
Sunil Ramakant Bhumralkar | Independent Director | Appointed 16 October 2025; chairs a board committee |
P.R. Ramesh | Independent Director | Appointed 16 October 2025; Risk Management Committee member |
Madan Mohan Pillutla | Independent Director | Appointed 16 October 2025; chairs the Nomination & Remuneration Committee |
Directors' Remuneration
| Director | Total FY2025 remuneration (INR Cr) | Notes |
|---|---|---|
Krishna Bodanapu (Executive Vice Chairman & MD) | 19.93 | Fixed pay, variable pay and commission |
Sukamal Banerjee (Executive Director & CEO) | 5.71 | Covers only 19 February to 31 March 2025. Fixed salary for the period was about INR 0.60 crore; the rest was mainly joining-related and variable pay. |
B.V.R. Mohan Reddy (Founder Chairman) | 0.72 | Commission and sitting fees |
Vikas Sehgal | 0.50 | Commission and sitting fees |
M.M. Murugappan | 0.24 | Commission and sitting fees |
Nitin Prasad | 0.24 | Commission and sitting fees |
Debjani Ghosh | 0.06 | Part year |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
March–April 2023 | Karthikeyan Natarajan became DET CEO; Krishna Bodanapu became Executive Vice Chairman & MD; Prabhakar Atla named CFO-designate | Planned succession |
23 January 2025 | Karthikeyan Natarajan resigned as CEO and Executive Director | Followed a 28.3% fall in Q3 FY2025 DET PAT. He stayed on as an adviser during the handover. |
19 February 2025 | Sukamal Banerjee appointed | Announced within four weeks, after an internal and external search |
March 2025 | K.A. Prabhakaran appointed CTO | Part of rebuilding the DET team |
8 April 2025 | Suman Narayan appointed CEO of Cyient Semiconductors | At the subsidiary's launch |
| 2025 | Kavita Kurup appointed Chief People Officer | — |
16 October 2025 | Three new independent directors | Board refresh |
4 March 2026 | Prabhakar Atla to COO and Shrinivas Kulkarni to CFO from 1 April 2026 | The company said this would support operating and margin execution. The shares fell about 2–3% that day. |
Major Shareholders
| Shareholder category | Holding (%) |
|---|---|
Promoter and promoter group | 23.28 |
Mutual funds (22 schemes) | 33.29 |
Foreign portfolio investors | 15.32 |
Insurance companies | 5.14 |
Other domestic institutions | 2.55 |
Non-institutional (retail, corporate bodies and others) | 20.42 |
Total | 100.00 |
Competitive Landscape
Peer Comparison FY2026
| Company | FY2026 revenue | Revenue growth, INR (%) | Profitability metric | Net profit (INR Cr) |
|---|---|---|---|---|
Cyient | INR 7,268.2 crore (USD 820.8 million) | -1.3 | EBITDA margin 11.2%; EBIT margin 9.1% | 463.0 |
L&T Technology Services (continuing operations) | INR 10,995.9 crore (USD 1,233 million) | 14.0 | EBIT margin 14.5% | 1,281.8 |
KPIT Technologies | USD 724.8 million | 10.5 | EBITDA margin 20.8% | — |
Tata Technologies | INR 5,505.6 crore | 6.5 | EBITDA margin 15.5% | 546.6 |
Tata Elxsi | INR 3,757.4 crore | 0.8 | Pre-tax margin 23.4% | — |
