Cyient Q2 FY27: PAT falls 7% YoY to ₹132.5 Cr on higher tax, even as revenue jumps 25%

Cyient Limited's consolidated revenue from operations rose 25.5% YoY (+7.7% QoQ) to ₹2,235.0 Cr for the quarter ended September 30, 2026, but consolidated net profit for the period fell 7.3% YoY to ₹132.5 Cr — profit attributable to shareholders was lower still, at ₹121.4 Cr, after ₹11.1 Cr of non-controlling interest tied to the Kinetic Technologies semiconductor acquisition. Sequentially PAT rose 21.9% QoQ from ₹108.7 Cr, but that compares against a soft base quarter. Basic EPS was ₹11.54, roughly flat versus ₹11.55 a year ago.

PBT was essentially flat YoY at ₹196.7 Cr (vs ₹196.6 Cr), but the year-ago quarter's PBT included a ₹20.7 Cr exceptional gain that is absent this quarter; stripping that out, adjusted PBT grew ~11.8% YoY. The real drag on the bottom line was the effective tax rate, which climbed to 32.6% this quarter from 27.3% a year ago. Netting both effects, adjusted PAT growth is approximately +3.6% YoY — positive, but still trailing 25.5% revenue growth, so consolidated NPM compressed to 5.9% from 7.8% YoY (even as it improved sequentially from 5.2% in Q1). The segment picture is more encouraging: Digital, Engineering & Technology (DET), the segment our pre-result preview flagged, grew revenue 15.7% YoY to ₹1,664.2 Cr with EBIT margin expanding to 13.9% from 10.7% a year ago and 12.2% last quarter — beating the preview's ₹1,580–1,620 Cr revenue and 13.0–13.5% margin expectations. Design Led Manufacturing (DLM) revenue grew 26.5% YoY to ₹393.1 Cr (matching Cyient DLM's own standalone print on October 15) with margin recovering to 10.7% from a weak 7.7% in Q1. Semiconductors, lifted by a full quarter of the Kinetic Technologies acquisition (closed April 2026), saw revenue jump to ₹184.7 Cr from a pre-acquisition ₹54.2 Cr base a year ago, but the segment remains loss-making at -₹30.0 Cr, roughly flat with -₹28.4 Cr last quarter.

The stock went into the print at ₹1,148, up 8.2% over the past month of trading.

For context: PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.

Against our pre-result preview, the print is mixed: DET revenue and margin both beat the flagged range, but consolidated PAT of ₹132.5 Cr missed the preview's ₹145–155 Cr expectation, largely on the tax-rate and one-off effects above; Street consensus had pegged FY27 EPS near ₹60.80, keeping full-year delivery under scrutiny. Against management's own prior framing from the Q1 concall — a 15% EBIT target deferred from Q4 FY27 to H1 FY28, and TAO Digital Solutions closing "late Q2" — the quarter is broadly on track: TAO closed September 3, 2026, within Q2 as flagged, and is now consolidated into DET, whose 13.9% margin is progressing toward but still short of the deferred 15% target. The quarter also carried a management transition — COO Prabhakar Atla resigned October 6, 2026 after 22 years — alongside board actions announced with results: a ₹12/share interim dividend and acquisition of the remaining 49% stake in Cyient Solutions and Systems Private Limited (CSSPL), making it wholly owned.