This article first appeared on GuruFocus .
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Revenue:INR3,033 million (INR303 crores), a 31.7% year-on-year decline.
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Order Book:INR23.5 billion, reflecting a quarter-on-quarter increase of INR583 million.
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Book to Bill Ratio:1.3 for the quarter; 1.56 year-to-date.
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Normalized EBITDA:INR309 million, a 14.4% decline year-on-year; EBITDA margin at 10.2%.
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Reported EBITDA:INR275 million, translating to 9.1% of revenue.
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Normalized PAT:INR138 million, an 18.6% year-on-year decline; PAT margin at 4.6%.
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Reported PAT:INR112 million, 3.7% of revenues.
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Gross Margin:Continued strong performance with double-digit EBITDA margin.
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Inventory:Elevated due to customer-specific shipment delays, expected to normalize by year-end.
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Industry Mix:Increased contributions from aerospace, industrial, and medical segments.
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Product Mix:Dominated by PCBA, with growth in box build and mechanical services.
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IPO Proceeds Utilization:93.2% utilized as of December 2025.
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Release Date: January 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cyient DLM Ltd ( BOM:543933 ) reported a strong order momentum with a book-to-bill ratio above one for the third consecutive quarter, indicating sustained demand and effective commercial strategy.
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The company is strengthening its sales engine by adding key strategic sales resources, positioning itself to pursue larger opportunities in the sector.
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There is a significant improvement in the margin profile, with orders forecasted to come at better margins than historically delivered, supported by a double-digit EBITDA margin.
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The company is seeing traction in high-growth industries such as automotive, industrial, and medical, which are central to its long-term strategy.
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Cyient DLM Ltd ( BOM:543933 ) has been recognized for its quality delivery and manufacturing maturity, receiving awards for electronic hardware exports and risk mitigation in aerospace.
Negative Points
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Revenue for the quarter was soft due to customer-specific issues related to the year-end holiday period and tariff-related uncertainty.
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There was a 31.7% year-on-year decline in Q3 revenue, primarily due to the completion of a large cyclical order near FY '25.
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Inventory levels were elevated due to customer-specific shipment delays, impacting networking capital negatively.
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The company incurred one-off expenses related to M&A evaluation and the impact of a new wage code, affecting the financial results.
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Despite improvements, the revenue mix remains heavily reliant on PCBA, with box build and other services growing but still not dominating.
Q & A Highlights
Q: We saw the revenue decline sequentially, which I think you explained, but how should we think about Q4? Is there an expectation for year-over-year growth? A: We are seeing a positive year-over-year trend and are confident that we'll achieve positive growth by the end of Q4.
Q: Can you provide details on the tariff situation and how it has impacted customer confidence? A: Earlier, there was a high tariff rate of 50%. We presented options to customers to reduce these tariffs, which has helped them take products back into the US, aiding in Q4 shipments.
Q: Regarding working capital, where do you see us ending the full year, and what kind of cash flow integration are we looking at? A: Networking capital improved over the last two quarters, but this quarter saw a setback due to inventory buildup. We expect to return to positive free cash flow by the end of the year.
Q: The order book has been improving sequentially. What are the triggers driving this growth? A: The growth is mainly driven by the Indian side of the business, with new customers and strengthening existing portfolios. We've added new customers in the last two quarters, contributing to this traction.
Q: How do you plan to leverage financial strength to support capacity expansion and technology investments? A: We are net cash positive and have the ability to expand capital for new opportunities. We continue to scout for both organic and inorganic growth opportunities to enhance capabilities and deliver value to customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
