New Delhi, Jan 22 (PTI) Engineering services company Cyient on Thursday reported a 24.9 per cent decline in consolidated net profit to Rs 91.8 crore for December quarter FY26, primarily due to a one-time
provision on the back of new Labour Codes.
The company had posted a net profit (attributable to the shareholders of the company) of Rs 122.3 crore in the year-ago period.
Revenue from operations saw a dip of 4 per cent to Rs 1,848.5 crore in Q3 FY26, as compared to Rs 1,926.4 crore in Q3 FY25.
On a quarter-on-quarter basis, profit fell 28 per cent while revenue increased 3.7 per cent.
The company accounted for a one-time provision of Rs 42.3 crore during the quarter under review for the implementation of the new Labour Codes.
Cyient Group’s business segments include DET, DLM, and Semiconductors, among others.
Cyient’s DET segment covers engineering solutions for industries like transportation & mobility (aerospace, rail, automotive), networks & infrastructure (connectivity, utilities), and strategic units (mining, energy, healthcare, lifesciences).
DLM handles electronics manufacturing services, while Semiconductors focuses on chip design, development, and supply chain.
Digital, Engineering & Technology (DET) reported a revenue of Rs 1,488.3 crore in the third quarter, up from Rs 1,397.5 crore in the year-ago period.
Design Led Manufacturing (DLM) saw a slide in revenues to Rs 303.3 crore, from Rs 444.3 crore in the corresponding period of FY25. Semiconductors dropped 26 per cent to Rs 61.1 crore in Q3.
During the quarter, Cyient Semiconductors, through its wholly-owned subsidiary, Cyient Cayman, signed a definitive agreement to acquire a majority stake in Kinetic Technologies for an aggregate consideration of about Rs 836.6 crore.
“Achieving this growth amid a fluid macroeconomic environment and a typically soft Q3 due to furloughs demonstrates the resilience of the underlying business. On the EBIT front, DET EBIT margin stood at 12.4 per cent, marking a 25bps sequential expansion. This was achieved despite the headwinds from the third tranche of wage hikes,” Cyient President and Chief Financial Officer Prabhakar Atla said.
The company’s ongoing cost optimisation programme and revenue recovery helped to fully offset additional expenses, he said, adding that the company remains on track to exit FY26 on a strong note.
“The organisational transformation initiatives spanning across GTM acceleration, Technology Adoption and Leadership addition, coupled with consecutive quarters of sequential revenue growth and EBIT expansion, strengthen our confidence in the near and medium-term outlook for the DET business,” he noted.
Cyient’s shares settled 1.14 per cent higher at Rs 1,135.5 apiece on BSE on Thursday. The results were announced post-market hours. PTI ANK . ANK ANU ANU
