Cyient (CYL IN) – Analyst Meet Update – Transition underway, execution remains key – HOLD
Published on 25 Aug 2026
Cyient aspires to drive more annuity-based arrangements by (1) offering a breadth of service portfolio, (2) having established senior leaders to dedicated BUs and (3) fixing internal constraints to drive better execution. With this, Cyient aspires to deliver revenue CAGR above industry peers with 15%+ EBIT margin in FY28-29, followed by industry-leading growth and 16%+ EBIT margin by FY31. We believe that the pivot towards managing lifecycle engineering can structurally improve the quality of Cyient’s revenue; however, the key monitorable remain the success rate and execution within its marquee accounts. We have not integrated Tao Digital’s financials, as the acquisition is yet to be completed and have largely maintained our FY27E and FY28E DET USD revenue growth estimates, while marginally increasing our EBIT margin estimates to 13.5% and 14.0% (13.2% and 13.7% earlier), respectively. We maintain our HOLD rating with a TP of INR 1,040, based on the SOTP methodology.
