Cyient shares dip after 28% sequential decline in Q3 profit; details here

Shares of Cyient Ltd. traded lower on Friday as analysts remained mixed after it reported a 28 per cent sequential dip in the profit growth for the third quarter of the current financial year (Q3-FY26). 

 

The IT-enabled services company's stock fell as much as 1.9 per cent during the day to ₹1,112.4 per share. Cyient stock pared losses to trade 1 per cent lower at ₹1,222.9 apiece, compared to a 0.07 per cent advance in Nifty 50 as of 10:36 AM. 

 

Shares of the company fell to their lowest since January 6 this year and currently trade at 1 times the average 30-day trading volume, according to Bloomberg. The counter has risen 0.5  per cent this year, compared to a 3 per cent decline in the benchmark Nifty 50. Cyient has a total market capitalisation of ₹12,474.28 crore.   CATCH STOCK MARKET UPDATES LIVE

 

Cyient Q3 results 

On a consolidated basis, revenue rose 3.8 per cent quarter-on-quarter (Q-o-Q) to ₹1,849 crore from ₹1,781 crore in the previous quarter.  Net profit, however, fell 28 per cent Q-o-Q to ₹91.8 crore compared with ₹128 crore. Earnings before interest and tax increased 14 per cent to ₹167 crore from ₹147 crore, with the EBIT margin improving to 9 per cent from 8.2 per cent. 

 

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Analysts on Cyient Q3 earnings

Motilal Oswal said it has reiterated its Sell rating on Cyient, noting that Q3FY26 reflects a phase of gradual stabilisation. While the digital engineering and technology business delivered a second consecutive quarter of low single-digit sequential growth, growth visibility remains constrained by deal conversion risks and uneven momentum across segments. 

 

With margin recovery expected to be gradual, the brokerage believes near-term earnings upside is limited. It has raised its FY26 and FY27 estimates by around 1-2 per cent to factor in Q3 performance, but sees limited scope for further upgrades at this stage.  ALSO READ | Ashok Leyland up 41% in 3 months, hits new high; what's driving CV stock? 

Choice Broking said the Q3performance in FY26 reinforced its confidence, with sequential growth, expanding digital engineering and technology margins and a strengthening order pipeline, even amid persistent macro uncertainty. 

 

Factoring in the semiconductor acquisition and improved medium-term earnings visibility, the brokerage has upgraded its rating on the stock to Add from Reduce. It has maintained its target multiple at 15 times and, based on FY28 estimated earnings per share of ₹74, has set a target price of ₹1,300.

 

Antique Stock Broking said that following the strong Q3 results, it has marginally increased its earnings estimates. The brokerage has maintained its Buy rating on the stock and raised its target price to ₹1,540 from ₹1,475.

 

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