Cyient DLM Limited , a prominent player in the electronic manufacturing services sector, has reported a mixed set of financial results for the second quarter. The company demonstrated resilience in profitability despite facing challenges in revenue growth.

Financial Performance Highlights

Cyient DLM experienced a significant year-on-year decline in revenue, which dropped by 20.2% to ₹3,106.34 million in Q2 FY26 from ₹3,894.50 million in the same quarter last year. This decrease was primarily attributed to the completion of a large order, as mentioned in the company's investor presentation.

Despite the revenue contraction, the company managed to maintain its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) relatively stable at ₹312 million, compared to ₹316 million in Q2 FY25, representing a marginal decline of 1.4% year-on-year.

Improved Profitability

A notable achievement for Cyient DLM this quarter was the significant improvement in its EBITDA margin, which expanded by 192 basis points to reach 10.04%, up from 8.12% in the corresponding quarter of the previous year. This enhancement in operational efficiency demonstrates the company's ability to optimize costs and improve productivity despite challenging market conditions.

The company's bottom line saw a substantial boost, with consolidated net profit more than doubling to ₹321.45 million, compared to ₹154.54 million in Q2 FY25. This remarkable 108% year-on-year increase in net profit underscores Cyient DLM's focus on profitability and effective cost management.

Strategic Developments

According to the investor presentation, Cyient DLM has made strategic progress on several fronts:

1. The company added two global new logos in Q2, including a Japanese EVOTL (Electric Vertical Take-Off and Landing) company focused on future mobility and an EV charging company.
2. Cyient DLM reported a 130% year-on-year growth in the first half of the fiscal year's order intake.
3. The company has strengthened its technology organization with key investments in Build to Specification (B2S) capabilities.
4. Management continues to explore M&A opportunities to expand global presence and capabilities.

Order Book and Future Outlook

The company's order backlog expanded during the quarter, driven by a robust order intake of approximately ₹4,977 million. This strong order book, which stood at ₹22,911 million at the end of Q2 FY26, provides visibility for future revenue streams and indicates potential for growth in the coming quarters.

Cyient DLM's focus on diversification is evident from its efforts to expand its non-Aerospace and Defense business, with particular emphasis on the medical and industrial segments, as well as new industries like electric vehicles.

While the company faces near-term challenges in revenue growth, its improved profitability metrics and strategic initiatives position it well for future opportunities in the dynamic electronic manufacturing services market.

Cyient DLM Limited , a prominent player in the electronics manufacturing services sector, has announced significant changes in its leadership structure following a recent shareholder vote. The company conducted a postal ballot to seek approval on two crucial resolutions, both of which received overwhelming support from shareholders.

New Leadership at the Helm

The first resolution, which garnered an impressive 99.95% of votes in favor, approved the appointment of Mr. Rajendra Velagapudi as the new Managing Director and Chief Executive Officer of Cyient DLM Limited. This appointment marks a new chapter in the company's leadership and strategic direction.

Experience Valued: Age Waiver for Non-Executive Director

In a move that underscores the company's appreciation for experienced leadership, shareholders also approved the continuation of Mr. B.V.R. Mohan Reddy as a Non-Executive, Non-Independent Director, despite his approaching the age of 75 years. This special resolution received 99.01% of votes in favor, reflecting strong shareholder confidence in Mr. Reddy's continued contribution to the board.

Voting Details

The postal ballot, conducted through remote e-voting, saw active participation from shareholders. Here's a breakdown of the voting results:

The e-voting process was overseen by Mr. Manish Kumar Singhania, a practicing Company Secretary appointed as the scrutinizer for the postal ballot.

Implications for Cyient DLM

These approvals signal a strong vote of confidence in the company's leadership choices. The appointment of Mr. Velagapudi as MD & CEO is expected to bring fresh perspectives to Cyient DLM's operations and strategy. Meanwhile, the continued presence of Mr. Mohan Reddy on the board ensures that the company retains valuable experience and industry insights at the highest level of governance.

As Cyient DLM moves forward with its new leadership structure, stakeholders will be keenly watching how these changes translate into the company's performance and strategic direction in the competitive electronics manufacturing services landscape.