Cyient DLM Limited Earnings Summary — Q4 FY2026
Cyient DLM Reports Resilient FY26 Performance with 32% 3-Year PAT CAGR and Significant Debt Reduction
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹374 Cr is 34.3% higher year-on-year.
- Revenue has compounded at 1.5% annualised over the last 10 quarters.
- Net profit of ₹16 Cr is 118.4% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -13.8% annualised across the period.
- Operating margin stands at 10.5% in Q1 FY2027.
- Operating margin expanded by 148 bps year-on-year.
- Over the last two years operating margin has expanded by 273 bps.
- PBT margin is 5.9%.
- Expense growth of 32.1% remained below revenue growth of 34.3%.
- Operating profit of ₹39 Cr is 56.3% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 57/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 374 | 369 | 303 | 311 | 278 | 428 | 444 | 389 | 258 | 362 |
| Expenses | Improving | 335 | 326 | 276 | 279 | 253 | 371 | 416 | 358 | 238 | 324 |
| Operating Profit | Volatile | 39 | 43 | 28 | 31 | 25 | 57 | 28 | 32 | 20 | 38 |
| Operating Margin | Improving | 10.5% | 11.7% | 9.1% | 10.0% | 9.0% | 13.4% | 6.3% | 8.1% | 7.8% | 10.5% |
| Other Income | Volatile | 0 | 5 | 4 | 23 | 4 | 3 | 7 | 7 | 9 | 8 |
| Interest | Softening | 6 | 6 | 6 | 7 | 9 | 9 | 10 | 11 | 8 | 9 |
| Depreciation | Improving | 11 | 11 | 11 | 11 | 11 | 10 | 10 | 7 | 7 | 6 |
| Profit Before Tax | Volatile | 22 | 32 | 15 | 36 | 10 | 42 | 15 | 21 | 14 | 31 |
| Tax | Volatile | 6 | 9 | 4 | 4 | 3 | 11 | 4 | 5 | 4 | 8 |
| Net Profit | Volatile | 16 | 22 | 11 | 32 | 7 | 31 | 11 | 15 | 11 | 23 |
| Net Margin | Volatile | 4.4% | 6.1% | 3.7% | 10.3% | 2.7% | 7.3% | 2.5% | 4.0% | 4.1% | 6.3% |
Key Takeaways
- Revenue for Q4 FY26 grew 21.7% QoQ to ₹3,690.8 million, though it declined 13.8% compared to the same quarter last year.
- Net Profit staged a strong sequential recovery, nearly doubling from ₹112.3 million in Q3 FY26 to ₹224.4 million in Q4 FY26.
- The company successfully completed the utilization of IPO proceeds, with ₹3,279 million directed toward incremental working capital.
- Inventory levels remain a challenge, with consolidated inventories at ₹6,473 million as of March 31, 2026, contributing to cash flow pressure.
- Finance costs significantly decreased to ₹56.4 million in Q4 compared to ₹85.9 million YoY, reflecting a healthier debt profile post-IPO.
- A one-time employee benefit expense provision of ₹16 million was recognized in the quarter due to the notification of new labour codes.
Management Guidance
Management is focusing on executing its high-mix, low-to-medium volume order book in safety-critical sectors like Aerospace and Defense. While specific numerical revenue targets for FY27 weren't provided, the focus remains on inorganic growth via acquisitions (₹700 million unutilized IPO funds previously earmarked) and operational efficiency in cash conversion.
Sentiment Shift
Improving
Sequential margins and profit show strong recovery from the previous quarter's lows, though year-on-year growth remains stagnant.
Outlook
The company is positioned to benefit from Indian defense indigenization tailwinds. However, management must navigate high working capital intensity and a recent trend of stagnant annual revenue growth to regain institutional investor conviction.
From the Annual Report (Key Quotes)
“The implementation of the Labour Codes has resulted in an increase of ₹16 in the provision for defined benefit obligation.”
“Management expects the value of the investment [in an IP-based communications company] to improve in future as the products are launched over the next few years.”
“The Statutory Auditors have expressed an unmodified opinion on the consolidated and standalone financial results.”
Official Quarterly Documents
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This summary is AI-generated from Cyient DLM Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.