Cyient Q2 Results: Profit slumps amid lower demand, margin pressure; Declares ₹16 dividend

Engineering and technology services firm Cyient Ltd on Thursday posted a sharp year-on-year decline in quarterly profit, as weaker demand, operational headwinds, and higher costs weighed on earnings across its business units.The company reported a net profit of ₹127.5 crore for the quarter ended September 30, 2025, down 28.8% from ₹179 crore a year earlier.

Revenue from operations fell 3.7% YoY to ₹1,781 crore, while EBIT dropped 36.4% to ₹146.7 crore.

Operating margin contracted sharply to 8.2%, compared to 12.5% in the corresponding quarter last year.
Cyient’s board declared an interim dividend of ₹16 per share, indicating confidence in its long-term financial strength despite current volatility.The results reflect broad-based margin pressure across the company’s business lines, notably within its design-led engineering business (Cyient DET), which accounts for the majority of revenue.

DET’s EBIT margin declined to 12.2% from 13.7% a year earlier, even though revenue remained largely flat in U.S. dollar terms at $164.4 million.

“Despite macroeconomic uncertainties and Q2 traditionally being a seasonally softer quarter, we achieved stable performance across our portfolio,” said Prabhakar Atla, President and CFO, adding that DET’s free cash flow to PAT conversion stood at 114%, driven by improved working capital management and ongoing cost optimisation.

The company’s semiconductor division saw a rebound, with Q2 revenue rising 12.3% QoQ to $6.2 million, though it continued to report losses. EBIT for the segment stood at – $2.7 million, deepening from the previous quarter.

Cyient shares ended 4.8% higher on the BSE at a price of ₹1,179.90. The stock has fallen over 35% in the year-to-date period and trades just 129 points above its 52-week low price.