Cyient DLM Shares Slide Over 8% After Q1 Profit Declines

Shares of Cyient DLM Ltd. tumbled more than 8% on Wednesday, a day after the company reported a sharp drop in its quarterly net profit.

The design-led manufacturing firm posted a consolidated net profit of Rs 7.5 crore for the April–June quarter of FY26, marking a nearly 30% decline from Rs 10.6 crore in the same period last year. The earnings miss came despite a healthy rise in revenue, which grew 8% year-on-year to Rs 278 crore. Analysts had expected revenue to touch Rs 290 crore.

The market reaction was swift, with the stock falling as investors digested the impact of a less favourable revenue mix and elevated input costs, which the company cited as key reasons for the profit decline. While Ebitda rose 25% to Rs 25 crore, beating street estimates, and margins improved to 9% from 7.8%, the bottom-line contraction overshadowed operational gains.

Cyient DLM acknowledged that the completion of a large order in FY25 had weighed on revenue growth this quarter, though it noted that contributions from recent mergers and acquisitions helped offset some of the impact. The company maintained a positive outlook for the remainder of the fiscal year, pointing to a robust order book and a healthy pipeline of opportunities.