Cyient DLM shares tumble 8% as Q1 profit falls; results breakdown here

Cyient DLM shares fell 8 per cent after it reported a decline in its June quarter net profit for the current financial year (Q1FY26)

Shares of Cyient DLM plunged 8 per cent on Wednesday after the company reported a decline in its June quarter net profit for the current financial year (Q1FY26), even as revenue and margins grew. 

 

The industrial products maker's stock fell as much as 8.26 per cent during the day to ₹441 per share. The stock pared losses to trade 3.1 per cent lower at ₹466 apiece, compared to a 0.22 per cent advance in Nifty 50 as of 10:48 AM. 

 

Shares of the company resumed falling after a day of gains on Tuesday and have slipped nearly 9 per cent from their recent highs of ₹505 per share, which it hit earlier this month. The counter has plunged 30 per cent this year, compared to a 6.2 per cent advance in the benchmark Nifty 50. Cyient DLM has a total market capitalisation of ₹3,699.17 crore, according to BSE data.  

 

Cyient DLM Q1 results 

The company posted a net profit of ₹7.5 crore in the first quarter of FY26, marking a 29.6 per cent decline from ₹10.6 crore reported in the same period last year.

 

Revenue for the June quarter grew 8 per cent year-on-year to ₹278.4 crore, up from ₹257.8 crore. On the margins front, earnings before interest, taxes, depreciation, and amortisation (Ebitda) rose 25 per cent to ₹25 crore compared to ₹20 crore a year ago, while the operating margin improved to 9 per cent from 7.8 per cent, reflecting better cost efficiency.

Cyient DLM management commentary

Revenue drop is majorly due to completion of a large order in FY25, offset by inclusion of the acquisition that was concluded in H2 last year, the company said in an investor presentation. Ebitda growth is healthy due to mix and marginal increase in volumes. 

 

The order backlog increased, driven by a record order intake of approximately ₹515 crore during the quarter, the highest in the past 10 quarters. Nearly 50 per cent of this new intake is executable in FY26, the company said. 

 

Before the Q1 results, global brokerage firm JPMorgan said that Cyient DLM is seen facing growth challenges in FY26 due to a weak order book and a lack of revenue from Bharat Electronics. It had a 'Neutral' rating on the stock with a target price of ₹450 per share. 

About Cyient DLM 

Cyient DLM is a leading Integrated Electronics Manufacturing Solutions provider that offers Design Led Manufacturing (DLM) solutions across the entire product lifecycle. The company serves customers in diverse sectors including Aerospace & Défense, Industrial, and Medical & Healthcare, with a commitment to driving innovation and value-driven solutions.