India's Cyient posts 40% profit drop in seasonally challenging second-quarter

L&T Technology Services

16/10/2025 12:41

Corrects headline, paragraph 1 to say net profit was down 28.8%, not 40%, paragraph 3 to say revenue was down 3.7% to 17.81 bln rupees, not down 1% to 18.31 bln rupees

Oct 16 (Reuters) - India' Cyient CYIE.NS on Thursday reported a 28.8% fall in profit, as a higher wage bill in a seasonally tough quarter weighed on the engineering research and development firm.

Consolidated net profit came in at 1.28 billion rupees ($14 million), down from 1.79 billion rupees last year.

Revenue was down 3.7% to 17.81 billion rupees, from 18.49 billion rupees a year ago.

Cyient had changed the way it reports its segment-wise revenue from the last quarter onwards, after it carved out its semiconductor business into a separate subsidiary unit.

KEY CONTEXT

     While U.S. policy shifts - including President Donald Trump's proposed H-1B visa changes - have rattled India's IT services sector, Cyient has stayed relatively insulated, thanks to its limited overseas workforce and focus on project delivery from India.

The company, which counts Honeywell and Bharat Electronics among its clients, had deployed just six workers on H-1B visas in FY25, and does not anticipate material impact on its financials for FY26, the company said in September.

Still, supply chain bottlenecks have weighed on its engineering R&D operations, particularly in its transport, mobility, and semiconductor businesses.

President and chief financial officer Prabhakar Atla highlighted headwinds from wage hikes as well as ongoing macroeconomic uncertainties, as some reasons for the company's performance this quarter.

Peer Tata Elxsi reported a drop in profit for the fourth straight quarter last week, as its key transportation business declined.

ANALYST VIEWS

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Cyient Ltd
CYIE.NS
17.24
9.75
5.84
13.08
HOLD
18
0.85
2.31
Tata Elxsi Ltd
TTEX.NS
45.08
33.63
6.32
3.70
SELL
15
1.18
1.40
KPIT Technologies Ltd
KPIE.NS
35.11
20.42
10.62
11.18
BUY
20
0.87
0.73
L&T Technology Services Ltd
LTEH.NS
28.87
18.41
12.43
13.96
HOLD
28
0.92
1.33

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JULY-SEPTEMBER STOCK PERFORMANCE

*

Cyient Q2FY26 update https://tmsnrt.rs/47bRAx9

 (Reporting by Abhirami G in Bengaluru)

 ((abhirami.g@thomsonreuters.com))