Curious about brokerages' take on Cyient DLM's Q2 results? Find out here

Cyient DLM reported its Q2FY26 consolidated results with mixed performance across key metrics. Revenue for the quarter stood at ₹311 crore, reflecting an 11.6 per cent quarter-on-quarter (Q-o-Q) growth but a 20.2 per cent year-on-year (Y-o-Y) decline. 

 

Ebitda was ₹31.2 crore, translating into a 10 per cent margin, up 24.4 per cent Q-o-Q but down 1.4 per cent Y-o-Y. Normalised PAT was ₹12.6 crore, down 68 per cent Q-o-Q and 18.7 per cent Y-o-Y, while reported PAT surged to ₹32.2 crore, up 330.6 per cent Q-o-Q and 108 per cent Y-o-Y, largely due to one-off other income gains.

 

Free cash flow remained strong at ₹27 crore, marking four consecutive quarters of positive cash generation despite one-time land acquisition expenses. The company’s H1 order intake crossed ₹1,000 crore, representing a robust 130 per cent Y-o-Y growth.

 

“Rajendra Velagapudi, managing director (MD) and chief executive officer (CEO) of Cyient DLM, said, "Our profitability has improved significantly this quarter, reflecting the disciplined execution and strategic choices we have made this year. We continue to strengthen our capabilities, expand our customer base, and build a robust pipeline. Order intake has seen a 130 per cent Y-o-Y growth in H1, and the pipeline of large deals in advanced stages are expected to drive future growth."

 

On the bourses around 11:30 AM, Cyient DLM share price was trading 0.75 per cent higher at ₹1,161.45. In comparison, BSE Sensex was trading 0.62 per cent higher at 82,535 levels.

Here’s what brokerages are saying about the results and the outlook:

Motilal Oswal | Buy | Target ₹550

 

Analysts at Motilal Oswal highlighted that Cyient DLM’s Q2FY26 consolidated revenue and Ebitda declined ~20 per cent and 1 per cent Y-o-Y to ₹311 crore and ₹31.2 crore, respectively. Ebitda margins expanded 190 basis points Y-o-Y to 10 per cent, slightly above the estimate of 9.7 per cent, driven by a higher Aerospace contribution of 37 per cent.

 

The order book rose 16 per cent Y-o-Y and 7 per cent Q-o-Q to ₹2,300 crore, supported by an order intake of ~₹500 crore, with about one-fourth executable in FY26. The book-to-bill ratio stands at ~1.6x, with management targeting ~1.4-1.5x for FY26. Motilal Oswal cut FY26 revenue estimates by 9 per cent due to slower execution of new orders and a higher base of BEL orders, lowering FY27/FY28 revenue and earnings estimates by 10 per cent/12 per cent, and FY26 adjusted PAT by 20 per cent. Thus, the brokerage retains a ‘Buy’ rating, valuing the stock at 27x Sep’27E EPS.

JM Financial | Add | Target ₹690

 

JM Financial analysts noted that while Cyient DLM’s Q2 performance was weak, order book momentum was a key positive. Adjusted PAT declined 19 per cent Y-o-Y, and revenue fell 20 per cent Y-o-Y. Ebitda margins expanded 190bps on account of a superior customer mix, keeping Ebitda largely flat Y-o-Y.

 

Consolidated order inflows rose to ₹470 crore in Q2FY26 from ₹240 crore in Q2FY25, reflecting a book-to-bill ratio of 1.5x. The total order book reached ₹2,290 crore, a 16 per cent Y-o-Y increase. Management guided for a 1.4-1.5x book-to-bill ratio in FY26. Around 20 per cent of new orders came from Cyient DLM’s higher-margin B2S segment. Therefore, JM Financial cut FY26 EPS estimates by 14 per cent due to H1 weakness, kept FY27 EPS largely unchanged, and raised FY28 EPS by 6 per cent. The stock is valued at 30x Sep’27E EPS, with an ‘Add’ rating.  ALSO READ | Ola Electric shares jump 5% on likely foray into energy storage market

Antique Stock Broking | Buy | Target ₹538

 

Those at Antique Stock Broking noted weak Q2 operational performance, with revenue at ₹311 crore (-20 per cent Y-o-Y) and adjusted PAT at ₹126 crore (-19 per cent Y-o-Y). However, Ebitda margins improved 192bps YoY to 10 per cent, aided by favourable product mix and higher exports (~86 per cent). Reported PAT surged to ₹321 crore due to fair valuation of earnout liability.

 

Order inflows remained resilient, taking the consolidated order book to ₹2,290 crore (+16 per cent Y-o-Y). Growth from industrial, auto, and med-tech segments is expected to support consistent order inflows in coming quarters. New orders are expected to enter execution from Q4FY26 onwards. Hence, the brokerage cut FY26/27/28 estimates by 15 per cent/6 per cent/5 per cent respectively and values the stock at ~22x 1HFY28E EPS, retaining a ‘Buy’ rating with a revised target price of ₹538.

 

That said, Cyient DLM’s Q2FY26 results showed declining revenue and normalised PAT Y-o-Y, but margin expansion, strong free cash flow, and robust order book growth provided positive signals. Brokerages generally see value in the stock, due to strong order inflows, a healthy book-to-bill ratio, and higher-margin segments as key positives, even as FY26 earnings estimates have been revised downward.