Cyient DLM reports strong Q2 FY26 performance despite revenue dip

Cyient DLM Limited reported a revenue of INR 310.6 crores for Q2 FY26, despite a year-on-year degrowth of 20%. The company achieved an order intake of nearly INR 500 crores, increasing its order book to INR 2,291 crores, with a book-to-bill ratio of 1.6. EBITDA for the quarter stood at INR 31.2 crores, reflecting double-digit margins. The normalized PAT margin was 4%, with a reported profit of INR 32.1 crores, which included an extraordinary gain from an earnout reversal.

The company's strategic focus on the Indian market and existing global clients led to significant wins, including a new build-to-spec (BTS) order from a Japanese electric vertical take-off and landing urban air mobility company and a strategic win from an automotive client specializing in EV charging solutions. The order backlog quality is improving, with a greater emphasis on high-margin orders.

Cyient DLM's industry mix now includes 37% Aerospace, 8% Defence, 30% Industrial, and 15% Medical, shifting from a previous heavy reliance on Aerospace and Defence. Box builds now represent a higher mix of the business, growing at 34% year-on-year, contributing to higher margins. The company expects the book-to-bill ratio to reach 1.4 to 1.5 for the full year.