Cyient DLM Q3 profit, margins widen, revenue falls; M&A cost, labour code effect dampen numbers

Electronic Manufacturing Services (EMS) firm Cyient DLM Ltd on Tuesday (January 20) reported its third quarter results, posting a 2.7% year-on-year (YoY) increase in net profit to ₹11.2 crore, compared with ₹10.9 crore in the corresponding quarter of the previous year. The company noted that profit after tax in Q2 had included a one-off income of ₹19.58 crore.

Revenue for the quarter fell 31.7% year-on-year to ₹303.3 crore, from ₹444.2 crore a year ago. The company said year-on-year performance was impacted by the completion of a large order.

EBITDA declined 3.3% to ₹27.3 crore in the third quarter, compared with ₹28.2 crore reported in the year-ago period. The EBITDA margin improved to 9% in Q3, compared with 6.3% in the year-ago quarter. Margins improved due to a better mix, improved supply chain, and efficiency gains.

Also Read: Cyient DLM shares fall after Q1 results, despite strong order intake

On the business mix, the defence segment recorded a YoY degrowth of 88% due to the completion of a large order. The aerospace segment posted growth of 12% over last year. Focused efforts to strengthen the industrial and med-tech segments resulted in strong year-on-year growth in these areas.

PCBA (printed circuit board assembly) continued to remain the dominant contributor to revenue. The mechanical and others segment reported YoY growth of 50%. The box build share increased to 31% in Q3, compared with 21% in Q3 FY25.

Geographically, the rest of the world segment continued to account for a higher share of business, with sustained traction in the North America and Europe regions. The India business mix stood at 14% and continued to grow.

Normalised EBITDA was calculated after adjusting for one-off M&A costs of ₹1.78 crore and a wage code impact of ₹1.64 crore. Employee costs included a one-off impact of ₹1.64 crore related to the new wage code, while other expenses reflected one-off M&A costs of ₹1.78 crore. Both expenses were disclosed separately, and adjusted EBITDA was used for reporting purposes.

Also Read:Cyient DLM Q2 Results | Net profit more than doubles to ₹32 crore; revenue slips 20%

Finance costs declined 38% due to a reduction in interest rates and working capital loans. Other income was lower due to reduced income from fixed deposits and the impact of exchange loss. The effective tax rate, excluding one-offs, stood at 24.65%.

Shares of Cyient DLM Ltd ended at ₹366.75, down by ₹17.95, or 4.67%, on the BSE.

Also Read: Cyient DLM shares soar 8% on Q4 beat; CEO sees continued momentum into FY26