Cyient DLM shares drop 5% post Q3; worst appears to be behind, say analysts

Shares of Cyient DLM Ltd. fell over 5 per cent on Wednesday, even as brokerages said that the worst appears to be behind after it reported muted third-quarter earnings for the financial year 2-25-26 (Q3-FY26). 

 

The company's stock fell as much as 5.6 per cent during the day to ₹345.8 per share. The stock pared losses to trade 1.5 per cent lower at ₹359.3 apiece, compared to a 0.24 per cent decline in Nifty 50 as of 9:58 AM. 

 

Shares of the company fell for the third straight session and currently trade at 9.1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 2.8 per cent this year, compared to a 3.5 per cent decline in the benchmark Nifty 50. Cyient DLM has a total market capitalisation of ₹2,888.86 crore. 

 

Cyient DLM Q3 results 

Cyient DLM reported a 2.18 per cent rise in net profit to ₹11.23 crore for the quarter ended December 2025, compared with ₹10.99 crore in the same quarter last year. Revenue from operations, however, declined 31.71 per cent year-on-year to ₹303.35 crore from ₹444.24 crore in the December 2024 quarter.

Analysts on Cyient DLM earnings 

Antique Stock Broking said the worst appears to be behind for the company, with growth expected to resume from Q4FY26. The brokerage noted that the order book stood at ₹2350 crore, up 9.6 per cent Y-o-Y. While defence revenues remain inherently lumpy, a rising contribution from the industrial, automobile and medical technology segments is likely to support more consistent order inflows in the coming quarters. 

 

Citing weak performance in the first nine months of FY26, Antique cut its earnings estimates for FY26, FY27 and FY28 by 28 per cent, 19 per cent and 18 per cent, respectively. The brokerage retained its 'Buy' rating on the stock, while revising the target price to ₹49 from ₹538 earlier.

 

JM Financial said Cyient DLM reported a weak third quarter, with revenue missing estimates, Ebitda coming in line, and a profit after tax beat driven by higher other income. The brokerage noted that order wins and management’s commentary on margins provided some comfort amid the softer performance.

 

JM Financial said management is focused on building a stronger sales team across key regional markets and expressed increasing confidence that the margin trajectory will trend upward from here, supporting the company’s ability to sustain double-digit margins going forward.

 

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