CYIENT Q2 FY27 Results Analysis: Revenue Jumps 25.5%, PAT Slips 4.8%

CYIENT's Q2 FY27 numbers came in mixed, with revenue of Rs. 2,235.00 Cr (+25.49% YoY) and PAT growth of -4.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Key Investment Insights

Key Positives

• Consolidated revenue grew 25.5% YoY to Rs.2,235 Cr and 7.7% QoQ
• DET EBIT margin reached 13.93%, up from 12.23% in Q1 and 10.69% a year ago, on a clean path toward the 15% H1-FY28 target
• EBITDA grew 31.8% YoY to Rs.309.4 Cr with margin up ~66 bps QoQ to 13.84%
• DET revenue grew 8.1% QoQ and 15.7% YoY; DLM revenue grew 26.5% YoY with EBIT margin recovering to 10.74% from 7.65% in Q1
• Semiconductors revenue grew 240.8% YoY to Rs.184.7 Cr on Kinetic consolidation
• H1 CFO/PAT of ~110.6% with FCF of Rs.201.1 Cr; subsidiaries swung to a positive Rs.18.6 Cr contribution vs a Rs.39.6 Cr drag in Q1
• Exceptional items were nil in Q2 FY27; no normalisation adjustments required

Risk Factors

• PAT attributable to owners declined 4.8% YoY to Rs.121.4 Cr despite 25.5% revenue growth
• Finance costs surged 134.6% YoY to Rs.37.3 Cr on acquisition debt; total borrowings rose to Rs.2,479.7 Cr from Rs.165.8 Cr
• Semiconductors EBIT loss widened to Rs.(30.0) Cr from Rs.(28.4) Cr in Q1, with breakeven deferred to FY28
• Effective tax rate rose to 32.6% from 27.3% a year ago
• Interim dividend cut 25% to Rs.12 per share from Rs.16 per share in Q2 FY26
• DLM EBIT margin of 10.74% remains below the 12.97% of Q2 FY26