Cyient Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with stock exchanges. The filing, submitted on June 9, 2026, includes an Independent Practitioner’s Reasonable Assurance Report on the BRSR Core Indicators provided by Bureau Veritas India Limited.

ESG Performance Highlights

The company reported that it achieved 100% wastewater recycling at owned sites and maintained zero liquid discharge across all locations. Renewable energy adoption increased by 34% year-on-year, while overall energy consumption decreased by 13%. The company maintained zero workplace fatalities and achieved near-universal coverage in health and safety training, with 100% completion of human rights training.

Governance and Oversight

Oversight of the company's Business Responsibility policies rests with a leadership team led by the President of Corporate Functions, Mr. PNS Narasimha. Cyient has established a dedicated ESG Committee of the Board to provide oversight into the company's sustainability agenda. The committee comprises three Board peers and meets at least thrice during the year to review performance across key areas.

Stakeholder Engagement and Compliance

The company reported zero instances of regulatory non-compliance. It assessed 211 suppliers during the reporting period through the Dun & Bradstreet ESG assessment reporting, covering approximately 50% of the total annual spend with value chain partners. The report confirms that the BRSR Core indicators were prepared in accordance with Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Cyient Limited has finalized a definitive agreement to acquire 100% of the equity share capital of Tao Digital Solutions Inc. for an enterprise value of US$218 million. The transaction is scheduled for completion on or before September 30, 2026. This strategic move aims to bolster Cyient's Intelligent Engineering proposition by integrating Tao Digital's strengths in AI-native data and lifecycle engineering capabilities, positioning the combined entity for larger markets and annuity-led deals. Tao Digital has demonstrated strong profitability, achieving over 20% EBITDA margin. Cyient anticipates moderate single-digit growth in FY27 with acquisitions included. The company held an investor conference call on June 01, 2026, to discuss the acquisition details, the presentation for which is now available on its website.

Acquisition Details

The total consideration is structured as an all-cash deal, comprising an upfront payment of US$130 million and two earnout tranches spread over two years post-closing. The upfront amount represents approximately 60% of the total value and about 7.9x the CY25 EBITDA of Tao Digital. The earnouts are linked to EBITDA growth and synergy delivery. Cyient will fund the acquisition primarily through debt, with a significant portion to be serviced by the free cash flows of the acquired asset. Tao Digital will become a wholly-owned subsidiary of Cyient Ltd.

Strategic Rationale and Financials

Tao Digital brings synergistic capabilities in AI and Data Engineering and Digital and Product Engineering. The acquisition addresses critical capability gaps in an AI-led market shift, enabling Cyient to move from small, project-based revenues to large, multi-year, multi-tower deals with outcome-based commercial models. The combined capabilities will allow Cyient to service the entire product value chain, driving a shift from the ER&D Outsourcing market to an estimated US$2 Trillion Total Addressable Market.

Tao Digital has demonstrated strong revenue growth, reaching US$80 million in CY25 revenue. Headquartered in Santa Clara, CA, the firm operates with a workforce of approximately 3,500 employees across eight delivery centres.

Tao Digital generates over 80% of its revenues from data engineering and software product engineering, with a diversified revenue base focused majorly on the Americas (70%). The Automotive, Hi-tech, and Healthcare verticals contribute to over 90% of its revenues. As part of the transaction, Cyient will also acquire group entities listed in Annexure A of the regulatory filing, including subsidiaries in Canada, India, Taiwan, Greece, Germany, the Czech Republic, and Australia. The deal was intimated to the stock exchanges on May 30, 2026, under Regulation 30 of the SEBI (LODR) Regulations, 2015.