Cyient DLM (CYIENTDL IN) – Q2FY26 Result Update – B2S traction to drive growth – Accumulate
Published on 15 Oct 2025
In Q2FY26, CYIENTDL’s margins expanded by ~190bps, driven by higher contribution from the Box-to-Build segment (25% vs 15% in Q2FY25) and a decline in the share of the lower margin Defense segment. The company remains confident of achieving an EBITDA margin above 10% for FY26 and expects book to build ratio of 1.5x. In Q2FY26, the company added two new clients: a Japanese company manufacturing EVOTL vehicles and an EV charging company. The Build-to-Specification(B2S) segment contributes 20% to the order backlog, and the share is likely to increase in the future. For FY26, the company expects growth to be driven by the Aerospace, Industrial and MedTech segments, with a double-digit margin. We cut our earnings estimates by 2.2%/0.5% for FY27/FY28E mainly due to decline in revenues. We have revised TP to Rs478 (Rs485 earlier), based on 25x Sep’27 earnings and maintain our recommendation to ‘Accumulate’. We estimate FY25-28E revenue/EBITDA/PAT CAGR of 20.7%/27.7%/33.8%, with EBITDA margin expanding by ~170bps.
