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Geopolitical headwinds in Israel
View Risks →Cyient DLM Limited — Q2 FY26
Cyient DLM reported Q2 FY26 revenue of ₹310.6 crore, down 20% YoY due to the completion of a large defense order, but EBITDA margin expanded 192 bps YoY to double digits, driven by a favorable revenue mix.
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Cyient DLM reported Q2 FY26 revenue of ₹310.6 crore, down 20% YoY due to the completion of a large defense order, but EBITDA margin expanded 192 bps YoY to double digits, driven by a favorable revenue mix. PAT surged 108% YoY to ₹32.1 crore, boosted by a one-time earnout reversal. Order intake was strong at ₹500 crore (book-to-bill 1.6), with H1 cumulative intake up 130% YoY to over ₹1,000 crore. Management expects YoY revenue growth to resume in Q4 FY26, supported by a robust pipeline in industrial, automotive, and build-to-spec (B2S) segments. B2S now constitutes >10% of the order book. Key risks include geopolitical headwinds in Israel and tariff impacts on US operations, though management is actively managing these.
साइएंट डीएलएम ने दूसरी तिमाही में 310.6 करोड़ रुपये का कारोबार किया, जो पिछले साल से 20% कम है। इसकी वजह एक बड़ा रक्षा ऑर्डर पूरा होना है। लेकिन कंपनी का मुनाफा बढ़ाने वाला मार्जिन (EBITDA) 192 आधार अंक बढ़कर दोहरे अंकों में पहुंच गया, क्योंकि कंपनी ने ज्यादा मुनाफे वाले उत्पाद बेचे। शुद्ध मुनाफा (PAT) 108% बढ़कर 32.1 करोड़ रुपये हो गया, जिसमें एक बार का फायदा भी शामिल है। नए ऑर्डर 500 करोड़ रुपये आए, जो बिक्री से 1.6 गुना ज्यादा है। पहली छमाही में कुल ऑर्डर 130% बढ़कर 1,000 करोड़ से ऊपर पहुंच गए। कंपनी को उम्मीद है कि चौथी तिमाही में कारोबार फिर से बढ़ेगा, खासकर उद्योग, ऑटो और खास डिजाइन वाले उत्पादों से। खतरे में इज़राइल में भू-राजनीतिक मुद्दे और अमेरिकी टैरिफ शामिल हैं, लेकिन कंपनी इन्हें संभाल रही है।
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Order Intake (Q2)
₹500 crore
+130% YoY (H1 cumulative)
Order intake of nearly ₹500 crore in Q2, with H1 cumulative intake crossing ₹1,000 crore, up 130% YoY.
Order Book
₹2,291 crore
+₹159 crore QoQ
Order book increased to ₹2,291 crore, reflecting strong order intake and sustained book-to-bill ratio.
Book-to-Bill Ratio
1.6x
Sustained above 1 for two quarters
Book-to-bill ratio of 1.6x in Q2, exceeding the target of above 1, with FY26 expected at 1.4-1.5x.
Box Build Revenue Growth
34% YoY
+34% YoY
Box build revenue grew 34% YoY, indicating a shift to higher-margin, stickier product mix.
What Changed vs Last Quarter
NEW
Book-to-bill ratio of 1.4-1.5x for FY26
Management expects the full-year book-to-bill ratio to be in the range of 1.4 to 1.5x, indicating sustained order momentum.
NEW
YoY revenue growth to resume in Q4 FY26
Management expects year-over-year revenue growth to resume in the fourth quarter of FY26, driven by order book execution.
NEW
Double-digit EBITDA margins to sustain and grow
Management is confident of maintaining and improving double-digit EBITDA margins, supported by favorable revenue mix and scale.
NEW
B2S revenue to increase in FY27
Build-to-spec revenue is expected to grow in FY27, with several projects in development and mass production starting from FY28.
DROPPED
Double-digit EBITDA margin sustainability
Management expects to sustain double-digit EBITDA margins, with potential improvement from operating leverage as volumes grow.
DROPPED
Strong FY27 revenue growth expected
Management expects strong year-over-year revenue growth in all four quarters of FY27, backed by record order book and pipeline.
DROPPED
Working capital improvement target
Target to reduce net working capital days to 100-120 days over the next couple of years.
NEW RISK
Geopolitical headwinds in Israel
The geopolitical situation in Israel has significantly impacted revenue quantum and predictability, though recent stability may help.
NEW RISK
US tariff impact on operations
Tariffs pose a risk to US operations; management is discussing solutions with customers but has no one-size-fits-all answer.
NEW RISK
Dependence on defense order completion
Revenue decline is primarily due to the completion of a large defense order; new defense orders depend on Indian MOD awards.
NEW RISK
Slow conversion of B2S orders to mass production
B2S orders have long design cycles (2-3 years), delaying revenue contribution from mass production until FY28.
RISK GONE
West Asia crisis disruption
Supply chain delays due to West Asia crisis impacted Q4 revenue and inventory levels; risk of continued execution delays.
RISK GONE
US tariff uncertainty on Altech
Tariff overhang on US operations (Altech) creates uncertainty for cross-border synergies and margin improvement.
RISK GONE
Revenue growth below expectations
Despite strong order book, revenue growth may lag if execution challenges persist or new orders convert slowly.
Fast read
Guidance and risk preview
Management expects the full-year book-to-bill ratio to be in the range of 1.4 to 1.5x, indicating sustained order momentum.
The geopolitical situation in Israel has significantly impacted revenue quantum and predictability, though recent stability may help.
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