Cyient DLM reported its Q3 FY26 results, noting a soft revenue quarter due to customer-specific issues. Despite this, the company achieved a healthy order intake of INR387 crores, resulting in a book-to-bill ratio of 1.3 for the quarter. The company is confident about a stronger performance in the upcoming quarter and a solid growth path for FY27, driven by a healthier margin profile and strategic initiatives.
Q3 FY26 Performance Overview
Cyient DLM’s revenue for the quarter was soft due to customer-specific issues, including year-end holidays and tariff-related uncertainties. However, these are expected to be resolved in the current quarter. The company’s order momentum remains strong, with a book-to-bill ratio above 1 for the third consecutive quarter. New wins are coming from customers onboarded in the past year.
Order Book and Growth Outlook
The company reported a healthy order intake of INR387 crores, translating to a book-to-bill ratio of 1.3 for the quarter. The YTD book-to-bill ratio stands at 1.56, indicating robust revenue visibility. The order book quality has improved, with a shift towards high-value programs and efficient execution.
Strategic Initiatives and Industry Trends
Cyient DLM is strengthening its sales engine and deepening engagement with existing customers. Electrification and digitization are accelerating across industries, expanding the scope of electronics content. There is also a clear pickup in defense spending and OEMs are actively derisking footprints, with India emerging as a credible alternative. Government-led investments in defense, rail infrastructure, and manufacturing are expanding the domestic opportunity landscape.
Financial Performance Details
The normalized EBITDA for Q3 stood at INR309 million, resulting in a healthy 10.2% EBITDA margin. The normalized PAT stands at INR138 million. The company expects operating leverage to further enhance margins in the coming quarters. The industry mix is shifting, with automotive, industrial, and medical segments contributing more meaningfully.
Key Takeaways
- Order backlog remains strong, supported by a YTD book-to-bill ratio greater than 1.5.
- Build-to-spec and NPA engagements with key customers provide robust long-term visibility.
- The company is well-positioned for growth in FY27.
- Healthy double-digit margins are expected with further upside from operating leverage.
Source: BSE
