Cyient Limited Earnings Summary — Q4 FY2026
Cyient Limited Announces Significant Buyback Amidst Sequential Profit Decline and Exceptional Charges
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹2,076 Cr is 21.3% higher year-on-year.
- Revenue has compounded at 5.0% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹104 Cr is 32.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -23.3% annualised across the period.
- Operating margin stands at 12.7% in Q1 FY2027.
- Operating margin compressed by 68 bps year-on-year.
- Over the last two years operating margin has contracted by 316 bps.
- PBT margin is 8.2%.
- Expenses grew 22.2% against revenue growth of 21.3%.
- Operating profit of ₹263 Cr is 15.1% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 58/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
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 | Stable | 2,076 | 1,927 | 1,849 | 1,781 | 1,712 | 1,909 | 1,926 | 1,849 | 1,676 | 1,861 |
| Expenses | Stable | 1,813 | 1,705 | 1,614 | 1,567 | 1,484 | 1,611 | 1,648 | 1,552 | 1,411 | 1,526 |
| Operating Profit | Stable | 263 | 222 | 235 | 214 | 228 | 299 | 278 | 297 | 265 | 335 |
| Operating Margin | Softening | 12.7% | 11.5% | 12.7% | 12.0% | 13.3% | 15.6% | 14.4% | 16.1% | 15.8% | 18.0% |
| Other Income | Volatile | 7 | -45 | -11 | 71 | 70 | 41 | -17 | 51 | 21 | 23 |
| Interest | Stable | 22 | 15 | 14 | 16 | 16 | 19 | 21 | 28 | 26 | 32 |
| Depreciation | Stable | 77 | 68 | 70 | 72 | 68 | 68 | 68 | 66 | 66 | 67 |
| Profit Before Tax | Stable | 171 | 95 | 139 | 197 | 214 | 253 | 174 | 254 | 195 | 259 |
| Tax | Volatile | 62 | 30 | 42 | 54 | 56 | 66 | 46 | 68 | 47 | 62 |
| Net Profit | Stable | 104 | 55 | 92 | 128 | 154 | 170 | 122 | 179 | 144 | 189 |
| Net Margin | Stable | 5.0% | 2.8% | 5.0% | 7.2% | 9.0% | 8.9% | 6.3% | 9.7% | 8.6% | 10.2% |
Key Takeaways
- Profitability was severely impacted by a ₹712 million exceptional item related to a failed acquisition attempt.
- The Board approved a major share buyback of 6.4 million shares (5.76% of capital) at ₹1,125 per share, totaling ₹7,200 million via tender offer.
- DET (Digital, Engineering & Technology) remains the core revenue driver with stable growth, while the Semiconductors segment reported an EBIT loss of ₹327 million.
- Completed the strategic acquisition of Kinetic Technologies on April 8, 2026 (post-quarter) for approximately ₹8,002 million to bolster power management expertise.
- Operating margins have compressed significantly YoY due to higher employee benefit expenses (up ₹1,015 million vs Q4 FY25) and segment-specific headwinds.
- The Tooling business (Others segment) recorded a ₹278 million impairment loss during the quarter.
- Cash position remains robust with consolidated cash and cash equivalents reaching ₹14,575 million by year-end.
- Re-organization of the Semiconductor business into a separate reportable segment was finalized to provide better operational visibility.
Management Guidance
Management is focused on integrating the Kinetic Technologies acquisition and scaling the newly separated Semiconductor segment. The buyback execution highlights a commitment to returning surplus capital to shareholders despite recent margin volatility.
Sentiment Shift
Deteriorating
A sharp decline in net profit and operating margins, combined with significant exceptional costs and the impairment of the tooling business, outweighs the positive signal of the large buyback.
Outlook
The outlook is transitionary as the company integrates Kinetic Technologies and navigates cyclical pressures in the Semiconductor space. Performance is expected to be volatile until the new segment structure stabilizes and exceptional costs subside.
From the Annual Report (Key Quotes)
“The Board considered and did not recommend a Final Dividend for the financial year 2025-26.”
“The proposed transaction did not proceed and these costs [₹712 Mn] have been expensed in the consolidated and standalone statement of profit and loss.”
“Current quarter/year numbers may not be strictly comparable with comparative numbers due to the acquisitions in the previous year.”
Official Quarterly Documents
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This summary is AI-generated from Cyient Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.