What to do with Cyient shares after Q1 results? Analysts decode what's next

Cyient share price today, Cyient Q1 results: Engineering and technology solutions provider Cyient shares are in focus after the company reported a mixed set of numbers for Q1FY26, marked by a modest topline performance and margin pressures in its core DET (Digital, Engineering and Technology) business, even as the management expressed confidence in the company's long-term growth trajectory.

 

Cyient Q1 print

 

Cyient reported Profit After Tax (PAT) of ₹163 crore, a Y-o-Y growth of 30 per cent, and revenue of ₹1,393 crore, marking a Q-o-Q decline of 0.3 per cent and Y-o-Y growth of 3.6 per cent, the company said, in a statement. The company added 14 new logos across industries and witnessed Q-o-Q and Y-o-Y growth of 4 per cent and 11 per cent, respectively, in key accounts.

 

At a group level, cash reserves rose ₹262 crore Q-o-Q to ₹1,894 crore.

 

Krishna Bodanapu, executive vice chairman and MD, said the group delivered a “resilient performance in line with our expectations across segments,” adding that, “Cyient Semiconductors is now a fully carved-out, independently operated subsidiary.” He also highlighted a notable $20 million+ deal win from a leading APAC telecom provider and said, “We are already seeing strong signs of recovery, aided by key deal wins and new logo additions.”

 

CEO Sukamal Banerjee stressed upon growing traction in transformation-led engagements, “Our Domain + AI strategy is driving momentum, helping customers digitise operations and accelerate AI adoption.”

 

However, the results also reflected ongoing challenges, particularly in the DET and Semiconductor segments.  ALSO READ | ICICI vs HDFC vs Axis Bank: Which bank stock is best for your portfolio?

Brokerage views

Emkay Global: ‘Reduce’ | TP cut to ₹1,230

Emkay flagged weak operating performance in the DET segment, noting that DET revenue declined 0.9 per cent Q-o-Q in USD terms to $162.7 million, while Ebit margin (EbitM) contracted by 63 bps Q-o-Q to 12 per cent. The drop was attributed to “volume impact and the first tranche of wage hikes.”

 

On the semiconductor business, Emkay noted that it posted an operating loss of ₹182 crore, with a 37 per cent Q-o-Q revenue drop. However, the brokerage is optimistic about a rebound by Q3, stating, “Management expects revenue to recover to ~$10 million per quarter with margins in line with DET (around 12 per cent).”

 

Given the Q1 miss, Emkay cut FY26–28 EPS estimates by 5–9 per cent and maintained a ‘Reduce’ rating, trimming the target price by ~7.5 per cent to ₹1,230. The DET business is valued at 16x June-27E earnings, while DLM is valued at a 20 per cent discount to its current market price.

Nuvama: ‘Hold’ | TP at ₹1,200

Nuvama called the results “modest”, with DET revenue declining 1.5 per cent Q-o-Q in constant currency terms, although slightly better than their estimate of -2.2 per cent. DET margins also dropped 63 bps Q-o-Q to 12 per cent, despite the carve-out of the loss-making semiconductor business.

 

PAT, however, came in above expectations at ₹1.6 billion, registering a 7.4 per cent sequential growth and 30 per cent Y-o-Y rise.

 

The brokerage said, “We are cutting FY26E/27E DET EPS by -4.4 per cent/-0.9 per cent on the back of lower growth and margins.” It continues to value Cyient on a sum-of-the-parts (SOTP) basis, assigning 15x FY27E P/E to DET, and maintaining a ‘Hold’ rating with a target price of ₹1,200.  ALSO READ | Q1 miss for Dr Reddy's, but analysts remain hopeful for future prospects

Cyient outlook

 

While Cyient's Q1 results show resilience on the bottom line and a healthy cash position, operational performance – especially in the DET and semiconductor verticals – has disappointed. The management’s commentary remains upbeat, backed by new deal wins, structural realignment, and AI-driven transformation engagements, but margin pressures and growth concerns weigh on near-term prospects.

 

With brokerages downgrading earnings estimates and cutting target prices, investors may consider waiting for improved execution and margin recovery before taking aggressive positions. Existing investors can hold, while new investors might want to await more clarity in Q2 performance and progress in the semiconductor business revival.