Cyient DLM (CYIENTDLM) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 showed sustained positive momentum in order intake, margin, and cash flow, with new global clients added and strategic focus on India and global expansion.

• Large deals are in the pipeline, with ongoing M&A exploration and technology investments to expand global presence.

• Approved unaudited consolidated and standalone financial results for Q2 and H1 FY26; appointed Dr. Ganesh Natarajan as Independent Director.

Financial highlights

• Q2 FY26 revenue was INR 3,106.34 million, down 20.2% YoY but up sequentially; EBITDA was INR 312 million, nearly flat YoY.

• Reported PAT surged 108% YoY to INR 321.45 million, driven by a one-off earnout reversal; normalized PAT margin was 4%.

• Order intake for Q2 was nearly INR 500 crore, with cumulative H1 order intake crossing INR 1,000 crore, up 130% YoY; order backlog reached INR 22,911 million.

• Free cash flow was positive for the fourth consecutive quarter, with operational FCF at INR 46 crore; normalized FCF for Q2 was INR 460 million after land acquisition cost.

• Basic EPS for Q2 FY26 was ₹4.05, up from ₹0.94 in Q1 FY26.

Outlook and guidance

• H2 outlook is promising, with expectations of continued order momentum and margin improvement; year-on-year growth expected to resume from Q4 FY26.

• Focus on account mining, expanding B2S offerings, and inorganic growth via acquisitions in NAM and EMEA.

• No formal FY27 guidance yet, but early indicators are positive.

• Management notes current and prior period numbers may not be strictly comparable due to an acquisition in Q3 FY25.