Operating revenue fell 4 percent to Rs 1,848.5 crore in Q3 FY26, compared to Rs 1,926.4 crore in Q3 FY25.On a quarterly basis, profits fell by 28 percent, while turnover rose by 3.7 percent.
The company was responsible for a one-time provision of Rs 42.3 crore during the quarter under review for implementation of the new labor laws.
Cyient Group’s business segments include DET, DLM and Semiconductors.
Cyient’s DET segment includes technical solutions for sectors such as transportation and mobility (aerospace, rail, automotive), networks and infrastructure (connectivity, utilities) and strategic units (mining, energy, healthcare, life sciences). DLM handles electronics manufacturing, while Semiconductors focuses on chip design, development and supply chain.
Digital, Engineering & Technology (DET) reported revenue of Rs 1,488.3 crore in the third quarter, compared to Rs 1,397.5 crore in the same period a year ago.
Design Led Manufacturing (DLM) saw revenue decline to Rs 303.3 crore, compared to Rs 444.3 crore in the corresponding period of FY25. Semiconductors fell 26 percent to Rs 61.1 crore in the third quarter.
During the quarter, Cyient Semiconductors, through its wholly owned subsidiary, Cyient Cayman, signed a definitive agreement to acquire a majority stake in Kinetic Technologies for a total consideration of approximately Rs 836.6 crore.
“Achieving this growth in a volatile macroeconomic environment and a generally weak third quarter due to furloughs demonstrates the resilience of the underlying businesses. On the EBIT front, DET’s EBIT margin was 12.4 percent, representing sequential growth of 25 basis points. This was achieved despite the headwinds of the third tranche of wage increases,” said Prabhakar Atla, President and Chief Financial Officer of Cyient.
The company’s ongoing cost optimization program and revenue recovery helped fully offset the additional costs, he said, adding that the company remains on track to close FY26 on a strong note.
“The organizational transformation initiatives spanning GTM acceleration, technology adoption and leadership addition, coupled with consecutive quarters of sequential revenue growth and EBIT expansion, reinforce our confidence in the near- and medium-term prospects for the DET business,” he noted.
Shares of Cyient settled 1.14 percent higher at Rs 1,135.5 apiece on BSE on Thursday. The results were announced after trading hours.
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