Cyient DLM reported a sharp year-on-year decline in revenue for the third quarter of FY26, reflecting slower customer demand and the impact of certain one-time costs. The company announced its financial results for the quarter ended December 31, 2025, highlighting margin resilience, strong cash generation, and a robust order pipeline despite near-term headwinds.

Q3 FY26 Financial Performance

For Q3 FY26, Cyient DLM posted revenue of ₹303.3 crore, representing a 31.7% decline compared to the same period last year. However, operational efficiency improved during the quarter, with normalised EBITDA coming in at ₹30.94 crore and margins expanding to 10.2%. This marked a 207 basis points year-on-year improvement, supported by a better revenue mix and ongoing cost optimisation efforts.

Normalised profit after tax for the quarter stood at ₹13.84 crore, accounting for 4.6% of revenue and reflecting a 73 basis points improvement over the previous year. Reported profit after tax was lower at ₹11.2 crore, or 3.7% of revenue, due to the impact of temporary one-off expenses, as highlighted by the company.

Strong Cash Flows and Order Book Momentum

Despite the revenue decline, Cyient DLM delivered strong cash generation, reporting year-to-date free cash flow of ₹754 million. Order inflows remained healthy, with year-to-date order intake crossing ₹1,400 crore, marking a robust 87% year-on-year growth.

During the December quarter alone, the company secured new orders worth ₹387 crore, providing improved revenue visibility for the coming quarters.

Operational Wins Across Key Sectors

Cyient DLM recorded new program wins across multiple high-growth segments, including medical, industrial, aerospace, and mobility. The company added two new customers in the high-reliability electronics manufacturing space, strengthening its footprint in the Medical and Industrial verticals.

Notable contract wins during the quarter included engagements with a precision motors manufacturer, a medical technology company, and a large industrial original equipment manufacturer (OEM).

The company also continued to scale its B2S business, with initial revenue conversion beginning in Q3 FY26. This segment is expected to contribute to further margin expansion as volumes increase. Additionally, Cyient DLM received a Risk Mitigation Award from Collins Aerospace, recognising its execution strength in delivering mission-critical printed circuit board assemblies (PCBAs).

Summary

Cyient DLM reported a 31.7% year-on-year drop in Q3 FY26 revenue due to customer-side slowdowns, but demonstrated margin resilience and strong cash flows. Normalised EBITDA margins improved to 10.2%, while order intake surged 87% year-on-year, supporting future growth visibility. New program wins across key sectors and early traction in the B2S business position the company for recovery as demand conditions improve.

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