Cyient Revenue Exceeds ₹2,235 Crore as Free Cash Flow Reaches ₹214 Crore in Q2
Key Facts
Cyient reported revenue from contracts with customers of ₹2,235 crore in the second quarter of fiscal 2027, up more than 25% year over year from ₹1,718 crore in the corresponding period, according to the Financial Express. Quarter over quarter, revenue rose 7.7% from ₹2,076 crore in the first quarter, NDTV Profit reported. Revenue growth, however, did not translate into net profit, which fell about 5% year over year, according to the Financial Express. The results highlight a gap between expanding activity and declining overall profitability during the quarter. The company also declared an interim dividend for shareholders, while the stock fell in the October 22 session.
Technology, engineering and digital technology, known as DET, was the largest component of operating performance detailed in the reports. Its revenue rose 15.7% year over year to ₹1,664 crore, and profit after tax reached ₹153 crore, up 12%, according to the Financial Express. CXO Today said organic revenue growth in the segment was 9.3% year over year and 2.1% quarter over quarter, distinguishing organic growth from the segment's reported overall growth rate. DET recorded orders worth $158.4 million, its highest level in a second quarter, up about 21% from a year earlier, according to the earnings call transcript published by Investing.com. These figures relate to the segment and do not represent order growth for the group as a whole. The chief executive said the company recorded its highest-ever second-quarter orders and its highest earnings before interest and taxes in 10 quarters.
On liquidity, free cash flow was ₹214 crore, equivalent to 140% of net profit and up 36.3% year over year, according to the call transcript published on Investing.com. Segment data also show DET free cash flow of ₹214 crore, equivalent to 139% of its profit after tax, according to CXO Today. The figures reflect two different measures: the first is for the company, as reported in the call transcript, and the second is DET's cash conversion relative to profit. On margins, the Financial Express reported that margins were stable quarter over quarter, as higher volumes offset increased chip costs and investment in research and development and personnel. That puts cost pressures in the context of the results, with the company indicating that higher volumes helped absorb them.
Revenue at the Design-Led Manufacturing segment, known as DLM, grew, led by aerospace and industrial activity, according to the Financial Express. This driver differs from DET order performance, as the report on orders did not attribute their growth to those two activities. In the broader context, the vice chairman and managing director said demand from aerospace and industry supported growth, while defense, semiconductors and AI represented the company's biggest growth opportunities. Management places these areas within its long-term capacity-building strategy. The report gave no separate figure for DLM revenue growth, so its account of the segment describes sources of support without specifying a rate.
The company faces a waiting period between booking orders and converting them into revenue, according to the earnings call transcript: officials said delays in material arrivals extend the process to 18-24 months. This timeline puts the record orders in their operational context; the volume of orders booked does not mean their full value appears in revenue in the same quarter. The chief executive said: "We grew during the quarter, recorded our highest-ever orders for a second quarter, and achieved our highest earnings before interest and taxes in 10 quarters." The comment reflects management's view of demand and operating profitability, alongside the decline in overall net profit reported by the Financial Express. Management's remarks on delayed materials also explain one aspect of the timing of order conversion into sales.
In trading, Cyient shares closed down 2.22% on October 22 from the previous close, according to the Financial Express. The same report gave a closing price of ₹1,143.70, consistent with Investing.com's account that the stock fell 2.22% to ₹1,143.7. The closing data in these two reports therefore do not support the previous draft's description of a 9% gain that day or the claim that results beat market expectations. The available facts include no other documented share-price move that can be attributed to the results announcement. The dated session record remains the decline reported on October 22.
For shareholders, the board approved an interim dividend of ₹12 per share on a face value of ₹5 per share, according to the Financial Express. The board set October 28, 2026, as the record date, with eligible shareholders to receive payment by November 17, 2026. The dividend accompanies the second-quarter results but does not explain the share move recorded on October 22. Looking ahead, management identifies defense, semiconductors and AI as key growth opportunities, while converting orders into revenue may take 18-24 months because of delays in material arrivals. These factors bring together ambitions to build capabilities and an operational timing constraint cited by management on the results call.