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Cyient Gets Target Price Revision After Q1 Results, But IDBI Capital Retains Hold Rating — Here's Why

Cyient's core design, engineering and technology segment reported a soft quarter; revenue of $162.5 million, down 0.5% QoQ / 0.9% YoY in CC terms, dragged by a sharp reversal in the strategic units segment and continued discretionary spending delays tied to West Asiarelated supply chain disruption.

Cyient Gets Target Price Revision After Q1 Results, But IDBI Capital Retains Hold Rating — Here's Why
The brokerage IDBI Capital has maintained its rating on Cyient to Hold,
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Cyient Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

The brokerage IDBI Capital has maintained its rating on Cyient Ltd. to Hold, by valuing stock at 13x FY27E EPS with a revised target price of Rs 909.

Cyient Ltd.'s core DET (Design, Engineering and Technology) segment reported a soft quarter; revenue of $162.5 million, down 0.5% QoQ / 0.9% YoY in CC terms, dragged by a sharp reversal in the Strategic Units segment (-8.2% QoQ, energy vertical contraction) and continued discretionary spending delays tied to West Asiarelated supply chain disruption.

Transportation and mobility remained the standout, growing 3% QoQ/14.8% YoY (CC) across aerospace, rail and auto; its fifth straight growth quarter.

Network and infrastructure rebounded modestly (+0.3% QoQ CC) post the Q4 quota-specific setback. Despite muted topline, DET EBIT margin expanded to 13.2% (+79bps QoQ, normalised), aided by cost optimisation and FX tailwinds; management pushed out its 15% Ebit exit target from Q4 FY27 to H1 FY28, as revenue ramp lags cost discipline.

Order intake grew 5.3% YoY with a $300 million+ qualified large-deal pipeline. Capital allocation was active; the Rs 720 crore buyback concluded, and the TAO Digital Solutions acquisition (AI/data engineering, $40–50 mn revenue) is on track to close by August, alongside a $500 mn Semiconductor business fundraise ($30 mn raised).

Click on the attachment to read the full report:

Idbi Capital Cyient Q1 Review.pdf
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