Cyient DLM shares plunged nearly 19% on Friday, October 16, after the electronics manufacturing services company reported mixed results for the September quarter of FY27. The decline came despite strong revenue growth, higher net profit and a record order book, as margin pressures and execution challenges weighed on sentiment.
The stock fell to ₹830.35 on the BSE. It had touched a 52-week high of ₹1,060.10 on October 14, 2026, and has since retreated sharply. However, it remains around 214% above its 52-week low of ₹264.95, recorded in March 2026.
Cyient DLM shares have declined 9% over the past week but gained 47% in three months, 158% in six months and 96% over the past year.
Cyient DLM Q2 results: Profit rises 43%, revenue jumps 25%
Cyient DLM reported a 43% year-on-year (YoY) increase in standalone net profit to ₹19.4 crore in Q2FY27, compared with ₹13.5 crore in the corresponding quarter last year. Revenue from operations rose 25% to ₹294.8 crore from ₹235.64 crore in Q2FY26. Growth was led by the Aerospace and Industrial segments, with Defence and Medical also contributing.
Order momentum remained healthy, with a book-to-bill ratio of 1.6. Order intake increased 11% sequentially and 15.4% YoY. The company added three new customer accounts across its core businesses and emerging growth areas. Its order book reached a record ₹2,810 crore, up 23% YoY. The contribution from box-build manufacturing also increased to 37% in Q2FY27 from 25% in the year-ago quarter.
However, execution was affected by supply chain lead times, while margins came under pressure from higher sales and marketing expenses and continued product development investments.
Management outlook: AI, robotics and expansion plans
Rajendra Velagapudi, managing director and CEO of Cyient DLM, said the company sustained its growth momentum in Q2FY27, supported by execution across key business segments and a record-high order book.
Management expects the order book to support revenue visibility and remains focused on expanding into high-growth areas, including AI and data centre infrastructure, robotics and semiconductor capital equipment.
During the quarter, Cyient DLM completed the integration of Altek Electronics, its acquisition in Connecticut, the US. The business has been renamed Cyient DLM Electronics Inc., strengthening the company’s global operating footprint and ability to serve customers across geographies.
Should you buy Cyient DLM shares? What brokerages say
Brokerages were divided on the stock, with PL Capital maintaining a ‘Reduce’ rating and Motilal Oswal Financial Services (MOSL) reiterating its ‘Buy’ recommendation.
PL Capital maintained its ‘Reduce’ rating and revised its target price to ₹873 from ₹878, valuing the stock at 45 times September 2028 earnings.
The brokerage highlighted margin pressure despite strong revenue growth.
“CYIENTDL delivered a steady performance in Q2FY27, with revenue growing 26.5% YoY, led by strong growth in aerospace and industrial segments, while EBITDA margins contracted by ~130bps YoY to 8.7%, primarily due to higher sales and marketing expenses,” said the brokerage
PL Capital expects revenue growth of more than 30% in the second half of FY27, with EBITDA margins of 9-10% for FY27 and over 11% in FY28. It expects operating leverage to support profitability as investments begin to yield results.
The brokerage also highlighted the company’s expansion strategy.
“The company has added three new customer logos in Q2FY27. CYIENTDL follows a three-stage strategy of Strengthen, Expand and Transform—deepening its core segments, expanding into AI Data Centres and Robotics during FY27–29, and transitioning towards product-, platform- and IP-led offerings beyond FY30,” he added.
MOSL, meanwhile, reiterated its ‘Buy’ rating and set a target price of ₹1,320, based on 50 times September 2028 earnings per share. The brokerage believes the growth story remains intact, supported by the record order book, aerospace momentum and rising box-build contribution. However, it expects upfront investments to keep FY27 EBITDA margins at 9-10%.
MOSL said: “We believe Cyient DLM’s growth story remains on track, supported by a record order book of ₹2,810 crore (+23 per cent YoY); continued aerospace momentum and a rising box-build contribution (37 per cent in Q2FY27 vs. 25 per cent in Q2FY26).”
MOSL expects the company’s sales and marketing platform to support a larger revenue base, paving the way for operating leverage and double-digit margins from FY28. It also noted that development costs were being expensed rather than capitalised, contributing to near-term margin pressure.
For investors, the key monitorables are order conversion, revenue growth and margin recovery. While the record order book offers visibility, the contrasting brokerage recommendations reflect uncertainty over how quickly investments will translate into stronger profitability.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
