Cyient DLM (CYIENTDL IN) – Q3FY26 Result Update – Building margin-accretive pipeline via new logos – Accumulate
Published on 21 Jan 2026
CYIENTDL’s margins expanded by ~390bps in Q3FY26, due to decline in the share of the lower-margin Defense segment. The company reported exceptional items in Q3FY26, M&A-related costs of Rs17.8mn, and a wage code impact of Rs16.4mn. In Q3FY26, the company added 2 new clients: in the Medical segment, focused on battery management systems, and in the Industrial segment, supporting high-precision and electrical motor controls. The Build-to-Specification (B2S) segment is expected to contribute 6–7% to the topline in FY26, with double-digit contribution from FY27, further supporting margin expansion. CYIENTDL expects revenue growth to be well diversified over the next 2–3 years, with contributions from the Aerospace, Industrial, Defense and Automobile segments. We estimate FY25-28E revenue/EBITDA/PAT CAGR of 12.7%/18.2%/23.4%, with EBITDA margin expansion of ~140bps. We cut our earnings estimates by 2.8%/2.8% for FY27/FY28E and Maintain ‘Accumulate’ rating with a TP of Rs418 (Rs439 earlier), based on 26x Mar’28 earnings.
