Cyient DLM (CYIENTDL IN) – Q2FY27 Result Update – Diversification into New Verticals to Drive Growth – REDUCE
Published on 16 Oct 2026
CYIENTDL delivered a steady performance in Q2FY27, with revenue growing 26.5% YoY, led by strong growth in aerospace and industrial segments, while EBITDA margins contracted by ~130bps YoY to 8.7%, primarily due to higher sales and marketing expenses and continued product-development investments. Management expects H2FY27 revenue growth of 30%+ and EBITDA margins of 9–10% in FY27, improving to 11%+ in FY28, supported by operating leverage. The company has added three new customer logos in Q2FY27. CYIENTDL follows a three-stage strategy of Strengthen, Expand and Transform—deepening its core segments, expanding into AI Data Centres and Robotics during FY27–29, and transitioning towards product-, platform- and IP-led offerings beyond FY30, with margins targeted to improve from ~9–11% currently to ~13–18% over the long term. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 30.9%/35.7%/25.1%, with EBITDA margin expansion of ~110bps. We tweak our earnings estimates for FY28/FY29E. Maintained our ‘REDUCE’ rating with a TP of INR 873 (INR 878 earlier), based on 45x Sept’28 earnings.
