Cyient DLM soars 18% on strong Q1 earnings; zooms 177% from March low

Cyient DLM share price movement

 

Shares of Cyient DLM hit a fresh 52-week high of ₹733.90, soaring 18 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market after the company reported strong earnings for the first quarter of the financial year 2026-27 (Q1FY27) and a healthy order book position.

 

Thus far in the month of July, the stock price of Cyient DLM surged 58 per cent. It zoomed 177 per cent from its 52-week low of ₹264.95 touched on March 30, 2026. The stock hit a record high of ₹882.90 on February 26, 2024.

 

 

At 12:04 PM, Cyient DLM was quoting 12 per cent higher at ₹697.80, as compared to 0.90 per cent decline in the BSE Sensex. The average trading volume on the counter jumped over eight-fold with a combined 9.8 million equity shares changing hands on the NSE and BSE.

 

Cyient DLM - Q1 results

 

Cyient DLM reported strong Q1FY27 earnings, with revenue growing 34.3 per cent year-on-year (YoY) to ₹373.8 crore, driven by aerospace (40 per cent YoY) and industrials (90 per cent YoY). Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 56.2 per cent YoY to ₹39.2 crore with a 10.5 per cent margin (+149 bps YoY). The company’s profit after tax (PAT) jumped 119 per cent YoY to ₹16.3 crore. 

 

The company achieved a record order book of ₹2,598.9 crore (1.5x book-to-bill) with ₹551.9 crore inflows, added two logos, completed NADCAP cable harness certification, and expects a Honeywell Aerospace ramp-up over 18 months.

 

The management said Cyient DLM has started FY27 with strong momentum, driven by disciplined execution and a healthy demand across its key segments. The strong order intake demonstrates the company‘s readiness for future growth.

 

As global AI infrastructure investments continue to evolve, Cyient DLM is increasing its focus on emerging technology-driven industries and next-generation product categories, including AI infrastructure, data centre technologies, and robotics. Leveraging its engineering heritage and high-reliability manufacturing capabilities, Cyient DLM is well positioned to participate in these evolving market opportunities, the management said.  Check Q1 Results Today 

Brokerages view on Cyient DLM

 

Cyient DLM has moved beyond its challenging phase with large defense program execution normalizing and growth visibility significantly improving. Entry into high-growth verticals like AI infrastructure, data centers, semiconductor capital equipment, and robotics will drive the next expansion phase, ICICI Securities said in a note.

 

Furthermore, the built to specific (B2S) business is scaling to contribute double-digit revenue over 12–18 months, which is complex offering and earns 250-300 bps better operating margins. The management aspires to improve margin from 10 per cent plus levels to 11-13 per cent in FY27E-FY29E and further to 13-18 per cent plus beyond FY30 as B2S offerings expand. Overall, the company is set for multi-year growth while operating leverage and high-end offerings shall support margin improvement, the brokerage firm said.

 

Cyient DLM started FY27 on a strong note with a healthy order book, reinforcing confidence in its growth trajectory. Analysts at Motilal Oswal Financial Services believe the company is entering a multiyear growth phase, supported by a) a ramp-up in aerospace programs (like Honeywell and Thales), b) increasing contributions from higher-margin box-build and B2S offerings, and c) expansion into AI infrastructure, robotics and semiconductor equipment.

 

The brokerage firm expects FY27 to mark the beginning of an accelerated earnings growth cycle, supported by operating leverage, an improving product mix and rising contributions from high-value engineering-led programs. Analysts estimate a compound annual growth rate (CAGR) of 27 per cent/40 per cent/67 per cent in revenue/EBITDA/adjusted profit after tax over FY26- 28E. They reiterate our BUY rating on the stock with a target price of ₹800 (40x FY28E EPS).  =========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.