Cyient Ltd Q2FY26 | The Engineer’s Comeback: ₹1,781 Cr Revenue, ₹117 Cr Profit, and a Dividend Fatter Than Its Margins

1. At a Glance

Welcome to the world ofCyient Ltd, the Hyderabad-based tech craftsman that prefers blueprints over buzzwords and engineering over empty evangelism. With amarket cap of ₹13,228 croreand a current price of₹1,191, the company’s recent quarters have looked like an emotional rollercoaster designed by an engineer with insomnia.

In Q2FY26, Cyient delivered₹1,781 crore in consolidated revenueand₹117 crore in net profit, declaring aninterim dividend of ₹16 per share— because if margins fall, dividends must rise to keep shareholders from rioting.

Year-on-year, revenue fell3.7%, while PAT dropped34.5%, which the company blamed on macro headwinds, semiconductor restructuring, and maybe Mercury being in retrograde. Still, with aP/E of 23.5x,ROCE of 16.6%, andROE of 12.8%, Cyient stands out as that solid, underhyped midcap that quietly fixes the world’s digital plumbing while others scream about AI revolutions.

2. Introduction – The Desi Detective’s View

If Sherlock Holmes had been an Indian engineer, he’d probably work at Cyient — debugging global systems, mapping invisible pipelines, and never quite getting credit.

Cyient’s history reads like the underdog script Bollywood forgot to film. Born in 1991 asInfotech Enterprises, it began with humble GIS mapping work before transforming into a full-fledgedengineering, manufacturing, and digital technologyplayer.

In 2023, it listedCyient DLM, its design-led manufacturing arm, and in 2025, spun offCyient Semiconductors. Essentially, it’s turning into a one-stop shop for the hardware-software nexus — think of it as a desi version of Siemens meets Infosys, but with more engineers per square foot.

Yet, the stock has fallen34% YoY, mostly because investors have the patience of a toddler with a fidget spinner. Despite strong long-term fundamentals, the market’s been sulking — maybe because Cyient doesn’t throw AI parties every week. But as we’ll see, the detective trail points to a company preparing for a renaissance, not a retreat.

3. Business Model – WTF Do They Even Do?

Cyient isn’t your run-of-the-mill IT outsourcer. It’s more like an engineering Sherlock Holmes — solving real-world industrial mysteries with data, design, and silicon.

Business Segments:

1. Digital, Engineering & Technology (DET)– 79% of revenue in FY25Covers Transportation, Connectivity, Sustainability, and New Growth Areas (NGA) like HiTech, Automotive, and Medical Tech. Basically, everything from airplane wings to semiconductor chips.
   • Order intake:US$ 836 Mn in FY25
   • 24 large deals wonworth US$ 370.8 Mn
2. Design-Led Manufacturing (DLM)– 21% of FY25 revenue (up from 1% in FY23!)Through subsidiaryCyient DLM Ltd, the company designs and builds high-reliability electronics for aerospace, defense, and industrial customers. It’s the hardware soul in a software world.
3. Others– 0.5%, including Aerospace Tooling and specialized defense solutions.

With300+ clients, including30% of the world’s top 100 innovators, Cyient’s niche is clear — it builds the stuff that helps other companies buildeverything else.

While TCS builds your digital dashboard, Cyient builds the IoT sensors that feed it.

4. Financials Overview

Annualized EPS = ₹46, which gives aforward P/E of ~25.8x— not cheap, but not nosebleed either.

Commentary:The quarter’s numbers looked like a tired engineer after a night shift — functional, but far from inspiring. Margins slipped to12%, the lowest in eight quarters, thanks to seasonality, semiconductor spin-offs, and rising manpower costs. But the dividend saved face, because nothing calms Indian investors like a