Cyient DLM Reports Strong Q2FY26 Order Intake with Double-Digit EBITDA Margins

Cyient DLM Limited , a leading electronic manufacturing services company, has reported a robust performance in Q2FY26, marked by significant order intake and improved profitability despite revenue challenges.

Strong Order Intake and Backlog Growth

The company secured nearly Rs 500 crores in new orders during Q2FY26, resulting in an impressive book-to-bill ratio of 1.6. This performance exceeded management expectations of maintaining a ratio above 1.0. Consequently, the order backlog increased to Rs 2,291 crores, setting a solid foundation for future growth.

Revenue and Profitability

While revenue stood at Rs 310.6 crores, reflecting a 20% year-on-year decline, Cyient DLM demonstrated resilience in profitability. The company achieved double-digit EBITDA margins of 10% (Rs 31.2 crores), with margins expanding 100 basis points sequentially and 192 basis points year-on-year.

Key Financial Metrics

Metric	Q2FY26 Value	YoY Change
Revenue	Rs 310.6 crores	-20%
EBITDA	Rs 31.2 crores	+192 bps
EBITDA Margin	10%	+192 bps
Order Intake	~Rs 500 crores	N/A
Order Backlog	Rs 2,291 crores	N/A

New Business Wins and Strategic Focus

Cyient DLM secured notable new contracts, including:

A build-to-spec order from a Japanese electric vertical take-off and landing (eVTOL) company
New business from an automotive client specializing in EV charging solutions

These wins align with the company's strategy to diversify its portfolio and expand into high-growth sectors.

Management Outlook

Management expects year-on-year growth to resume from Q4FY26 and anticipates a book-to-bill ratio of 1.4-1.5 for the full year. The company attributes the current revenue decline primarily to the completion of a large defense order, while other business segments showed growth.

Industry Mix

Cyient DLM reports a balanced industry mix with Aerospace at 37%, Industrial at 30%, Medical at 15%, and Defense at 8%. This diversification is expected to provide stability and growth opportunities across various sectors.

Conclusion

Despite short-term revenue challenges, Cyient DLM's strong order intake, improved profitability, and strategic wins in new sectors position the company for potential growth in the coming quarters. The management's positive outlook and focus on high-value segments like build-to-spec projects suggest a promising trajectory for the company.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.76%	-3.11%	-9.84%	-2.38%	-32.31%	+4.65%

Cyient DLM , a leading integrated electronics manufacturing services (EMS) provider, has announced a significant boost to its order book with new orders worth ₹4,977 million. This development comes as the company strategically positions itself for expansion in the rapidly growing electric vehicle (EV) and medical technology (MedTech) sectors.

Strategic Expansion

The company is actively pursuing growth opportunities in the EV and MedTech industries through mergers and acquisitions (M&A). These strategic moves are aimed at establishing Cyient DLM as a global leader in electronics design and manufacturing.

Financial Performance

According to the company's recent financial results:

Metric	Q2 FY26	YoY Change
Revenue	3,106.34	-20.2%
EBITDA	312.00	-1.4%
EBITDA Margin	10.0%	+192 bps
Normalized PAT	126.00	-18.7%

Despite a decline in revenue, primarily due to the completion of a large order, Cyient DLM has maintained a robust EBITDA margin of 10%, showcasing operational resilience.

Order Book and Cash Flow

Order backlog expanded to ₹22,911 million
Free Cash Flow stood at ₹27 crores in Q2, marking four consecutive quarters of positive cash flow

Sector-wise Performance

The company reported impressive year-over-year growth in key sectors:

Aerospace: 47% growth
Industrial: 256% growth
MedTech: 114% growth

These growth figures underscore Cyient DLM's successful diversification strategy and its strengthening position in high-growth sectors.

Management Commentary

Rajendra Velagapudi, MD & CEO of Cyient DLM, stated, "Our profitability has improved significantly this quarter, reflecting the disciplined execution and strategic choices we have made this year. We continue to strengthen our capabilities, expand our customer base, and build a robust pipeline."

Future Outlook

With a strong order intake and a pipeline of large deals in advanced stages, Cyient DLM is well-positioned for future growth. The company's focus on expanding its Build-to-Spec (B2S) capabilities and its strategic entry into the EV and MedTech sectors are expected to drive long-term value creation.

As Cyient DLM continues to leverage its engineering expertise and manufacturing capabilities, it is poised to capitalize on the growing demand for advanced electronics in emerging technologies and cleaner mobility solutions.