Cyient Q2 net profit dips to ₹132.5 crore despite revenue surge, declares ₹12 dividend

Engineering and technology solutions provider Cyient Ltd reported a 7.3 per cent decline in consolidated net profit for the second quarter ended 30 September 2026, dropping to ₹132.5 crore from ₹142.9 crore in the same period last year. The profit squeeze came despite a 22.5 per cent surge in total income to ₹2,243.6 crore, driven by robust momentum across India's expanding technology and industrial capabilities.

Sequentially, performance rebounded sharply from the June quarter, when net profit stood at ₹108.7 crore on income of ₹2,082.6 crore. In response to the resilient underlying operational performance, the board declared an interim dividend of ₹12 per equity share of ₹5 face value, representing a 240 per cent payout for the financial year 2026–27. Investors reacted positively to the expansion in order books, sending Cyient shares up nearly 10 per cent in Friday trading to ₹1,245 on the BSE.

How Cyient performed in Q2 FY27

Core segments drive record order books

The Digital, Engineering and Technology (DET) segment recorded revenue of ₹1,664 crore, up 15.7 per cent year-on-year. DET earnings before interest and taxes (EBIT) grew 35.3 per cent to ₹237 crore, yielding a 14.2 per cent margin, the highest achieved in 10 quarters. Free cash flow for the segment reached ₹214 crore, converting to 139 per cent of segment net profit.

Order intake for DET touched a record Q2 high of $158.4 million (around ₹1,330 crore), marking a 20.8 per cent jump year-on-year. The semiconductor business delivered its sixth consecutive quarter of sequential expansion, posting $19.3 million in revenue, while custom ASIC order intake surged more than 50 per cent quarter-on-quarter.

Cyient DLM, the design and manufacturing arm, sustained its rapid trajectory with revenue growing over 26 per cent in rupee terms and a book-to-bill ratio exceeding 1.6 times, supported by heavy domestic and international demand in aerospace and industrial manufacturing.

Strategic bets in defence and artificial intelligence

Executive Vice Chairman and Managing Director Krishna Bodanapu said the group sustained growth momentum through disciplined execution and strategic investments. He highlighted defence, semiconductors, and artificial intelligence as the primary growth drivers moving forward, noting that Cyient is offering end-to-end integration spanning engineering design, silicon, manufacturing, and lifecycle support.

The company also confirmed it completed a ₹720 crore share buyback during the period, purchasing 6.7 million shares to enhance shareholder return metrics.