Cyient DLM (CYIENTDLM) Q1 25/26 earnings summary

Executive summary

• CEO Rajendra Velagapudi appointed to lead operations, with board approval and confirmation pending via postal ballot.

• Q1 FY26 revenue grew 8% YoY to INR 2,784 million, driven by export markets, M&A, and US operations integration.

• EBITDA increased 25.3% YoY to INR 251 million, with margin improvement to 9.0% due to a better revenue mix and higher volumes.

• PAT declined 29.6% YoY to INR 75 million, impacted by lower other income and higher amortization from acquisitions.

• Record quarterly order intake of INR 5,150 million, highest in 8-10 quarters, with nearly half executable in FY26.

Financial highlights

• Q1 FY26 revenue: INR 2,784 million (up 8% YoY); EBITDA: INR 251 million (up 25.3% YoY); PAT: INR 75 million (down 29.6% YoY).

• EBITDA margin improved by 125 bps YoY to 9.0%; PAT margin at 2.7%, affected by amortization and lower other income.

• Free cash flow for the quarter was INR 802 million, marking the third consecutive quarter of positive cash generation.

• Order backlog at INR 21,318 million, up INR 2,260 million YoY, with INR 5,150 million new orders in Q1.

• Total expenses increased to INR 2,725.02 million from INR 2,526.17 million YoY.

Outlook and guidance

• Book-to-bill ratio expected to remain above 1x for FY26, with management confident in sustaining strong order momentum.

• No specific annual revenue guidance, but long-term CAGR target of 30% over five years; near-term focus on margin and profit growth.

• Double-digit EBITDA margin expected for the year, with line of sight to 12-13% sustainable margins as leverage and business mix improve.

• Nearly 50% of new order intake is executable within FY26, supporting revenue visibility.

• Management expects improvement in the value of investment in an IP communications company with upcoming product launches.