Cyient DLM announced its Q2 FY27 results, showcasing a 26.5% year-on-year revenue growth to INR 3,931 million. The company achieved an all-time high order book of INR 28.1 billion. While EBITDA margins saw a slight dip due to investments, normalized PAT grew by 25.8%, reflecting underlying business strength. The company anticipates margin improvement in FY28.
Strong Financial Performance in Q2 FY27
Cyient DLM Limited reported robust financial results for the second quarter of FY27, highlighted by a significant 26.5% year-on-year increase in revenue, reaching INR 3,931 million. This growth was primarily driven by strong performance in the aerospace and industrial sectors, alongside continued traction in defense and Medtech.
Record Order Book and Pipeline
The company’s order book also reached an all-time high, standing at INR 28.1 billion at the end of Q2 FY27, marking an increase of approximately INR 2.1 billion sequentially. This substantial order book provides a solid foundation for future growth and reflects the increasing relevance of Cyient DLM’s capabilities in both established and emerging markets. The bid pipeline also remains strong, exceeding $1 billion.
Profitability and Investment Strategy
While EBITDA for the quarter stood at INR 342 million, with an EBITDA margin of 8.7%, the company noted that this moderation was due to continued investments in sales strategy and new growth areas. Normalized Profit After Tax (PAT) grew by a healthy 25.8% year-on-year to INR 158 million, demonstrating resilient underlying profitability. The company is actively investing in product development and sales capabilities, with these costs being expensed rather than capitalized, impacting short-term margins but aimed at long-term value creation.
Future Outlook and Growth Drivers
Cyient DLM is strategically positioned to capitalize on the growing EMS market, particularly in high-reliability sectors. The company’s long-term strategy focuses on strengthening core segments like aerospace, defense, medical, and industrial, while expanding into new growth areas such as robotics, AI data center infrastructure, and semiconductor capital equipment. The build-to-specification (B2S) segment, renamed as electronic products, is a key strategic priority, with significant opportunities expected from FY29 onwards. The company anticipates margin expansion to double digits from FY28 onwards.
Key Segment Performance
Geographically, the business remains predominantly international, contributing 93% of revenue. Key industry segments include Aerospace (47% of revenue), Industrial (31%), Defense (7%), and Medtech (14%). The product mix shows PCBA as the largest category (48%), with a notable 85% year-on-year growth in box build revenue, now contributing 27% of total revenue.
Source: BSE
