Cyient is positioning FY26 as a stabilisation year with ambitious plans for high single-digit revenue growth in FY27, potentially approaching double digits as its turnaround strategy gains momentum. CEO Sukamal Banerjee outlined the company's growth trajectory and strategic initiatives during the Q3FY26 results discussion.

Q3FY26 Financial Performance

The Hyderabad-based engineering and technology company reported solid performance in the October-December quarter:

Growth Strategy and Revenue Outlook

While Cyient does not provide formal guidance, Banerjee shared the company's internal ambitions for FY27. The digital, engineering, and technology (DET) business continues to be the primary growth driver, supported by steady demand and improving operational performance. The CEO emphasised that the growth targets represent organic growth for the DET segment, with no acquisitions factored into these projections.

"We would like to drive high-single-digit, and probably on the borderline of double-digit growth, year-over-year, is what our plans are," Banerjee stated, clarifying that these represent internal ambitions rather than formal guidance.

Semiconductor Business Transformation

The semiconductor division has demonstrated strong momentum with double-digit quarter-on-quarter growth over the last two quarters. Key highlights of the semiconductor strategy include:

• Product-led focus requiring early-stage investments
• Target to achieve EBIT neutrality in FY27
• Strong order momentum supporting growth trajectory
• Revenue scaling expected as business matures

Banerjee explained that the semiconductor business operates differently from services, requiring upfront investments typical of product companies in their early journey.

Strategic Acquisition and Expansion

Cyient has announced the acquisition of Kinetic Technologies for approximately ₹900.00 crores, representing a significant strategic move:

The acquisition will double the company's current business run rate and supports its expansion into higher growth sectors, particularly in digital and data segments.

Margin Improvement Strategy

Cyient remains confident about achieving its medium-term margin aspirations of 15.00% through multiple initiatives:

• Gradual easing of restructuring costs from Q4 onwards
• Disciplined cost optimisation on non-people expenses
• Operating leverage from revenue growth
• Continued strategic investments in service and market portfolio transformation

The company has maintained investments despite taking restructuring costs in Q2 and Q3, viewing these as essential for achieving FY27 growth objectives.

Market Position and Future Outlook

Cyient continues to evaluate strategic opportunities in high-growth sectors where it has minimal presence, including automotive and software segments. The company's transformation strategy focuses on acquiring capabilities in digital and data areas that align with future market demands.

With a current market capitalisation of ₹12,490.00 crore and trading at ₹1,121.90, the company is executing its turnaround strategy while positioning for sustained growth in the coming fiscal years.

Cyient has maintained its established policy of not providing formal guidance regarding its overall financial performance, as confirmed during recent concall discussions with investors and analysts.

Company's Guidance Policy

The engineering and technology solutions provider has clearly communicated its stance on financial guidance, with company representatives explicitly stating that they "do not share guidance" with the investment community. This approach reflects the company's consistent policy of avoiding forward-looking financial statements or performance projections.

FY'27 Visibility

Regarding future financial visibility, Cyient has specifically indicated that it is "not giving any visibility for FY'27." This statement reinforces the company's broader approach of not providing specific financial targets or performance estimates for upcoming fiscal periods.

Communication Approach

The company's approach to investor communication focuses on discussing actual performance and operational developments rather than providing predictive financial metrics. This policy appears to be part of Cyient's broader strategy of maintaining conservative communication practices with stakeholders and avoiding commitments to specific financial outcomes that may be subject to market volatility and operational uncertainties.