1. At a Glance
Once a darling of the engineering and digital transformation tribe, Cyient is now trading at 40% off from its peak — and no, that’s not a festival offer. They’ve got semiconductor dreams, ₹1,700+ Cr quarterly revenue, and a P/E that doesn’t scream desperation. But growth? That’s… buffering.
2. Introduction with Hook
Cyient is that smart student from engineering college — top grades, great internships, and still somehow ghosted by the stock market after placements. From flying high at ₹2,157 to crash-landing at ₹1,242, it’s giving more turbulence than Indigo on a rainy day.
- Q1 FY26 PAT: ₹157 Cr — up 30% YoY
- ROCE still decent at 16.6%, but not the party it used to be
3. Business Model (WTF Do They Even Do?)
They build digital twins, fix legacy code, engineer aircraft wiring, and probably your neighbour’s broken WiFi if the price is right.
Revenue Segments:
- Digital, Engineering & Tech (DET): 79% of revenue — includes aerospace, semiconductors, automotive, and medical tech
- Design-led Manufacturing (DLM): The hardware child of the software parents
They’re basically consultants with CAD software and bigger dreams.
4. Financials Overview
Q1 FY26 Numbers:
| Metric | Q1 FY26 | Q1 FY25 | Growth |
|---|---|---|---|
| Revenue | ₹1,712 Cr | ₹1,676 Cr | +2% |
| EBITDA | ₹228 Cr | ₹265 Cr | -14% |
| Net Profit | ₹157 Cr | ₹148 Cr | +6% |
| EPS | ₹13.85 | ₹12.97 | +7% |
Revenue’s crawling, but PAT is walking. EBITDA though? Took a sabbatical.
5. Valuation
Let’s break this down without drinking the Kool-AI.
Method 1: P/E Valuation
TTM EPS = ₹56.36
Assign P/E = 18x–25x (because IT, but not the cool kid)
Fair Value Range = ₹1,015 – ₹1,409
Method 2: EV/EBITDA
EBITDA = ₹1,102 Cr | EV/EBITDA range = 11x–13x
Implied FV = ₹1,050 – ₹1,250
If you think buying at 25x is okay, you probably also paid ₹300 for popcorn at PVR.
6. What’s Cooking – News, Triggers, Drama
- Semiconductor carve-out done: So that’s a new shiny division.
- 14 new logos added this quarter (Hopefully not clipart)
- Q1 PAT up 30% YoY but market doesn’t care — stock’s down 3% on result day
- Independent Director resigned (again) — either boardrooms are cursed or they’re boring.
More updates than a Windows laptop. Still lags sometimes.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Net Worth | ₹5,310 Cr |
| Borrowings | ₹513 Cr |
| Total Assets | ₹7,621 Cr |
| Fixed Assets | ₹2,929 Cr |
Debt’s manageable, assets are strong. It’s like a well-fed horse that forgot it’s in a race.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹554 Cr | -₹1,006 Cr | -₹109 Cr | -₹562 Cr |
| FY24 | ₹726 Cr | -₹537 Cr | -₹266 Cr | -₹77 Cr |
| FY25 | ₹790 Cr | -₹134 Cr | -₹58 Cr | ₹598 Cr |
Finally, a green net cash flow. CFO is loyal, CFI is greedy, CFF is stingy. Classic desi family dynamic.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 16.6% |
| ROE | 12.8% |
| P/E | 22x |
| PAT Margin | 9.0% |
| D/E | 0.10x |
Not stressy, but not exactly sexy either. Solid “good guy” stock — reliable but not thrilling.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹6,016 Cr | ₹1,003 Cr | ₹514 Cr |
| FY24 | ₹7,147 Cr | ₹1,303 Cr | ₹703 Cr |
| FY25 | ₹7,396 Cr | ₹1,102 Cr | ₹658 Cr |
Revenue grew. EBITDA dropped. Classic plot twist — revenue eating into margin like YouTube ads in a 2-min video.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E |
|---|---|---|---|
| L&T Tech | ₹11,074 | ₹1,265 | 36x |
| Tata Tech | ₹5,144 | ₹685 | 42x |
| Cyient | ₹7,396 | ₹658 | 22x |
The nerdy middle child in the family of overachievers.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 23.28% |
| FIIs | 21.37% |
| DIIs | 35.63% |
| Public | 19.03% |
- Promoters chilling under 25%
- FIIs slowly ghosting (from 36.5% to 21%)
- DIIs are basically running the show now
Clearly a boardroom democracy, not a dictatorship.
13. EduInvesting Verdict™
Cyient is like the engineering senior who never topped the class but always cracked the placements. It’s consistent, profitable, but not exactly lighting up the scoreboard. Reasonably valued, clean balance sheet, but margin pressure and tepid growth make it a slow mover.
A decent pit stop. But don’t expect business class legroom.
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Cyient Ltd, Engineering Services, Semiconductor Carveout, EduInvesting Premium
