Cyient DLM Q1 Profit Slips 27% Sequentially Despite Robust Revenue Growth
The EMS provider posted a strong 34% YoY revenue jump, but profit fell sharply from the previous quarter, squeezing margins.
Cyient DLM's Q1 FY27 revenue grew 34% year-on-year, but profit declined 27% sequentially. The net profit margin compressed to 4.4%, down from 6.1% in Q4.
Cyient DLM reported a quarter of mixed signals, with revenue maintaining its strong growth trajectory but profitability taking a sequential step back. The electronic manufacturing services provider saw revenue climb 34.3% year-on-year to ₹373.8 crore in Q1 FY27, yet profit fell 27.4% from the previous quarter to ₹16.29 crore, indicating margin pressure.
The year-on-year picture remains very positive, with profit more than doubling (up 118.4%) compared to a weak Q1 FY26. However, the sequential decline in profit and a net profit margin that dropped to 4.4% from 6.1% in Q4 FY26 suggests the company faced cost headwinds or a less favorable sales mix. This follows an exceptionally strong Q2 FY26, where the margin peaked at 10.3%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 373.8YoY +34% | 369.08 | 278.43 |
| Profit (₹ Cr) | 16.29YoY +118% | 22.44 | 7.46 |
| Net Profit Margin (%) | 4.4YoY +63% | 6.1 | 2.7 |
Over the trailing twelve months (TTM), the company's financials are solid, with a net profit margin of 6.1% on revenue of ₹1,356.9 crore. The balance sheet is conservative, supported by a low debt-to-equity ratio of 0.11. The stock has significantly outperformed over the past year, delivering a 54.3% return, and trades at a P/E of 29.5, a notable discount to the industry average.
The key question for investors is whether the Q1 margin compression is a temporary blip or a sign of a new, lower profitability norm for the business.
Live Chart
· CYIENTDLM
(BSE)
ISIN: INE055S01018
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.