Deven Choksey's research report on Cyient DLM
Cyient DLM’s Q2 FY26 Revenue came in at INR 3,106 mn, declining 20.2% YoY and 10% QoQ, impacted by completion of a large defence order in FY25 and volume softness in select industrial subsegments. EBITDA stood at INR 312 mn, down 1.4% YoY but up 24% QoQ, missing our estimate of INR 348 mn by 10%. EBITDA margin expanded 192 bps YoY to 10.0%, below our expectation of 11%, aided by an improving business mix.
Outlook
We have roll forwarded our valuation basis to Sep’27 estimates and value Cyient DLM at 28.0x Sep’27 EPS, implying a target price of INR 483. We revise our rating from “BUY” to “ACCUMULATE” on the stock as we remain cautious on near-term growth and slower conversion of the existing order book.
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