Sell Cyient; target of Rs 1050: Motilal Oswal

Motilal Oswal's research report on Cyient

Cyient’s (CYL) DET business reported 2QFY26 revenue of USD164.4m, up 0.5% QoQ in constant currency (CC) terms, in line with our estimate of 0.5% growth. Transportation & Mobility grew 3.9% QoQ CC, while Network & Infrastructure rose 3.6% QoQ CC. EBIT margin of DET business at 12.2% missed our estimate of 12.6%. DET PAT was down 16% QoQ/22.4% YoY at INR1,370m (est. 1,455m). For 1HFY26, DET revenue grew 1.3% YoY, while EBIT/PAT fell 8.9%/0.7% YoY. In 2HFY26, we expect revenue/EBIT/PAT to grow by 3.1%/6.9%/15.9% YoY.

Outlook

We reiterate our Sell rating with our SoTP-based TP of INR1,050, implying an 11% potential downside.