1. Opening Hook
Just when markets were busy celebrating AI, defense budgets, and “Make in India” hashtags, Cyient DLM decided to post a revenue decline. Perfect timing. Revenue slid, analysts frowned, and Twitter probably typed “structural slowdown” before finishing their coffee.
But wait—this wasn’t a demand collapse. It was the classic EMS problem: big orders finished early, next ones still warming up. Meanwhile, management calmly talked about double-digit EBITDA margins, a ₹23.5 bn order book, and new logos in MedTech and Industrial.
So yes, topline sulked. But margins flexed. Cash flow complained. And the order book quietly did the heavy lifting.
Read on—because beneath the soft quarter lies a story of mix improvement, B2S ambitions, and a management team betting on scale rather than sympathy. Things get more interesting once the numbers stop shouting and start whispering.
2. At a Glance
- Revenue down 32% YoY – Large FY25 orders exited the building, took revenue with them.
- Order intake ₹3.9 bn – Pipeline says “relax, replacement demand is coming.”
- EBITDA margin at 10.2% – Despite revenue drama, operations kept their composure.
- PAT normalized down 19% – One-offs ghosted the
- comparison party.
- Defense revenue collapsed 88% YoY – Finished early, not fired early.
- Box build share up to 31% – Value-added work slowly stealing the spotlight.
3. Management’s Key Commentary
“Order book expanded during the quarter driven by strong order intake.”
(Translation: Revenue may be moody, but future visibility is behaving responsibly.) 😏
“EBITDA margins remained in double digits despite soft revenue.”
(Translation: We squeezed efficiency while volumes played hard to get.)
“Commenced revenue realization from B2S with a clear runway for scale-up.”
(Translation: Prototype today, platform business tomorrow—patience required.)
“Defense degrowth is due to large order completion.”
(Translation: No client rage-quit, just project graduation.)
“Strengthening Go-To-Market and cross-functional teams.”
(Translation: More salespeople, fewer excuses.)
“Investing in automation, traceability, and technology stack.”
(Translation: Humans expensive, systems forever.)
