The Services Company Building Chips. Slowly.

Services Company Goes Full Tech Visionary

Cyient is that friend who works at a consulting firm by day and tells everyone at parties they’re “building the future of semiconductors” by night. Except the friends part is real — management is actually doing both, and the market is not convinced.

Founded in 1991 as Infotech Enterprises, Cyient operates in three worlds: Digital, Engineering & Technology (DET) services (79% of revenue), Design-Led Manufacturing (DLM) via its subsidiary (21% of revenue), and now Semiconductors — a loss-making business that management says will be “EBIT neutral” in FY27 and India’s largest chip company by end-FY26. No pressure.

In FY25, Cyient posted ₹7,360 crore revenue (+3% YoY), ₹648 crore PAT, and an EBITDA margin of 15.6%. Nice enough for a mid-tier services firm. In Q3 FY26, revenue flatlined at -0.84% YoY growth in INR terms. Management blamed macro headwinds. The market blamed the stock valuation. Everyone’s probably right.

The real story is semiconductors. Cyient carved out its semiconductor business in March 2025, hired a Chief AI Architect and a Chief Growth Officer in February 2026, and announced the acquisition of Kinetic Technologies (a high-performance analog/mixed-signal semiconductor designer) for up to $93 million. Closing expected by April 2026. Management claims Kinetic brings $100M+ ASIC pipeline, 250+ products, and 100+ patents. On paper, India’s fabless semiconductor strategy just got a new player. On stock performance, it’s been a disaster.

Services Company with a Semiconductor Fetish

Cyient’s core business is niche engineering services. They hire smart people, send them to aerospace, automotive, telecom, and utility companies globally, and bill them at premium rates. Rinse, repeat. Revenue breaks down as: Transportation (30%), Connectivity (23%), Sustainability (31%), and New Growth Areas (16%) — which includes semiconductors, medical tech, and automotive.

The company has 1.5 lakh customer touch points (wait, no — that’s Castrol). Cyient has ~14,100 employees, works with 300+ global customers including 30% of the top 100 global innovators, and claims repeat order rates above 90%. That’s the services part. Solid, boring, profitable-ish.

Then there’s DLM, the manufacturing arm. Cyient DLM went public in August 2024 (Cyient sold 14.5% stake for ~₹400 crore), manufactures electronic components and subsystems for aerospace and defence OEMs, and is trying to prove that electronics manufacturing in India is viable. Q3 DLM revenue collapsed 30% YoY but margins hit double digits. Classic “we’re restructuring, be patient” playbook.

And then semiconductors. Cyient Semiconductors, the brand-new child of the family tree, is building ASIC solutions for power-related applications (not AI compute — they explicitly said that’s too expensive). They’re working on GaN semiconductors with Navitas, building India’s first indigenous smart-utilities silicon platform, and becoming a preferred partner in the government’s SCL fab modernization. Loss-making today. Hopes of future glory tomorrow.

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