What happened
Cyient DLM shares fell nearly 19% on Friday, 16 October 2026, to ₹830.35 on the BSE, after the electronics manufacturing services company reported its September quarter (Q2FY27) results. According to Mint, margin pressure and execution challenges weighed on sentiment despite strong growth.
The stock had touched a 52-week high of ₹1,060.10 on 14 October 2026. It is still roughly 214% above its 52-week low of ₹264.95 from March 2026, Mint reported.
The numbers
- Standalone net profit rose 43% year-on-year to ₹19.4 crore from ₹13.5 crore.
- Revenue from operations rose 25% to ₹294.8 crore from ₹235.64 crore.
- Order book reached a record ₹2,810 crore, up 23% year-on-year.
- Book-to-bill ratio (new orders won compared with revenue booked) was 1.6.
- Box-build manufacturing, where the company assembles complete products, made up 37% of the business, up from 25% a year earlier.
Growth was led by the Aerospace and Industrial segments. Execution was hit by supply chain lead times, while margins were squeezed by higher sales and marketing costs and continued product development spending.
What brokerages say
Brokerage views are split. PL Capital kept its ‘Reduce’ rating, which signals a cautious view on the stock. It pointed out that EBITDA margin (operating profit as a share of revenue) slipped about 130 basis points year-on-year to 8.7%. It expects revenue growth above 30% in the second half of FY27.
Motilal Oswal Financial Services kept its ‘Buy’ rating, which signals a positive view, saying the growth story is on track. Its valuation uses earnings per share for September 2028. It expects FY27 EBITDA margins of 9-10% and double-digit margins from FY28. It noted development costs are being expensed rather than capitalised, which weighs on near-term margins.
These are the views of the brokerages, not of Finance.net.in, and are not a recommendation to buy, sell or hold.
What it means for you
If you hold the stock, the result shows a gap between business growth and profitability. Order conversion, revenue growth and margin recovery are the things to track, according to Mint. The differing brokerage views show analysts disagree on how fast current investments will lift profits.
Management expects the order book to support revenue visibility and is targeting AI and data centre infrastructure, robotics and semiconductor capital equipment. Shares also moved 9% lower over the past week but are up 47% over three months and 96% over a year.
Background
Cyient DLM completed the integration of Altek Electronics, its Connecticut, US acquisition, during the quarter. The business is now Cyient DLM Electronics Inc. Managing director and CEO Rajendra Velagapudi said the company sustained growth momentum, supported by execution across key segments and a record order book. The company also added three new customer accounts.
