Cyient DLM Limited , a leading electronic manufacturing services (EMS) provider, has reported a strong performance in the first quarter of fiscal year 2026, with record order intake and improved profitability despite challenges in revenue growth.

Record Order Intake

The company achieved its highest order intake in eight quarters, securing new orders worth INR 515.00 crores. This resulted in a book-to-bill ratio of approximately 2, indicating strong future growth potential. Nearly 50% of the new orders are executable within the current fiscal year, providing a solid foundation for near-term revenue growth.

Financial Performance

Cyient DLM reported quarterly revenue of INR 2,784.00 million, representing an 8% year-on-year growth. Despite the modest top-line growth, the company saw significant improvement in profitability:

• EBITDA grew by 25.3% to INR 251.00 million
• EBITDA margins improved by 125 basis points to 9%
• Positive free cash flow of INR 80.00 crores generated for the third consecutive quarter

Order Backlog and Business Mix

The company's order backlog increased to INR 2,132.00 crores, reflecting a growing pipeline of future business. Cyient DLM is experiencing a favorable shift in its business mix, with new orders coming in at higher margins compared to previous periods.

Challenges and Mitigations

Revenue growth was impacted by two main factors:

1. Completion of a large customer order
2. Supply chain disruptions due to the Middle East conflict affecting delivery schedules

To address these challenges, the company has ramped up its sales efforts, deepening engagements with existing clients and pursuing new business opportunities. The management expressed confidence in maintaining a book-to-bill ratio above 1 and achieving double-digit EBITDA margins going forward.

Market Trends and Opportunities

Cyient DLM is benefiting from several market trends:

• China Plus One strategy adoption by global companies
• Increased RFQs from US customers seeking dual sourcing options
• Growing opportunities in Aerospace, Defense, Medical, and Industrial sectors

Management Changes

The Board of Directors appointed Rajendra Velagapudi as CEO in addition to his role as Managing Director, signaling a commitment to accelerating growth and strengthening global partnerships.

Outlook

Despite short-term challenges, Cyient DLM's management remains optimistic about future growth prospects. The company is focusing on strengthening its core business through large deals and sector diversification while also exploring inorganic expansion opportunities to enhance technological capabilities and geographic footprint.

As Cyient DLM continues to navigate the dynamic macroeconomic landscape, its strong order book and strategic initiatives position the company for sustained growth in the coming quarters.

Cyient DLM Limited , a prominent player in the Electronic Manufacturing Services (EMS) sector, has released its financial results for the first quarter of the fiscal year 2026, showcasing a mixed performance with revenue growth and profit decline.

Financial Highlights

For the quarter ended June 30, 2025, Cyient DLM reported:

The company's revenue saw a year-on-year growth of 8.0%, reaching ₹2,784.27 crore. EBITDA increased by 25.3% to ₹251.00 crore, with the EBITDA margin improving by 125 basis points to 9.0%. However, net profit declined by 29.6% to ₹74.63 crore, primarily due to reduced other income and increased amortization costs related to recent acquisitions.

Operational Performance

Cyient DLM reported its highest book-to-bill ratio in the last eight quarters, with a record order intake of approximately ₹5,150.00 crore during Q1 FY26. Nearly 50% of this new order intake is expected to be executed in FY26, indicating a strong pipeline for future growth.

The company's order backlog increased to ₹21,318.00 crore, up by ₹2,260.00 crore compared to the previous quarter, reflecting robust demand for its services.

Strategic Developments

The Board of Directors has initiated several key strategic moves:

1. Leadership Change: A postal ballot has been initiated to seek shareholder approval for appointing Mr. Rajendra Velagapudi as Managing Director and Chief Executive Director.

2. Committee Restructuring: The Nomination and Remuneration Committee and Stakeholder Relationship Committee have been reconstituted with new member compositions.

3. Equity Allotment: During the quarter, the company allotted 58,272 equity shares under its Restricted Stock Unit Plan.

Segment Performance

• The Aerospace segment showed healthy year-on-year growth of 63%.
• The Industrial segment grew by 425% year-on-year, while the Med-Tech segment saw a 142% increase, both benefiting from the inclusion of US operations.
• The Defense segment experienced a significant year-on-year decline of 82% due to the completion of a large order in FY25.

Future Outlook

Cyient DLM's management highlighted their focus on factory automation, digitization, and strengthening sales outside of India. The company is also investing in Build-to-Spec (B2S) capabilities through technology and people investments.

With a strong order book and strategic initiatives in place, Cyient DLM appears poised for growth in the coming quarters, despite the challenges faced in Q1 FY26.