Cyient’s second-quarter FY27 results show better profitability in its Digital, Engineering and Technology (DET) business. Organic revenue growth stayed modest. DET posted its highest EBIT in 10 quarters. Its margin rose to 14.2%.
Technology order intake also jumped. This points to demand for the company’s data, AI and digital engineering skills.
The Numbers
At group level, revenue grew 15.3% year on year in constant currency to $233.9 million. DET revenue rose 6.3% year on year in constant currency to $174.2 million. Its EBIT margin widened by 206 basis points year on year. DET order intake rose 20.8% to $158.4 million, excluding TAO Digital. Organic DET revenue grew 0.4% year on year in constant currency.
Sukamal Banerjee, Executive Director and Chief Executive Officer (CEO) of Cyient, said technology order intake stood at $10.3 million, up 39.7% year on year. He said this reflects demand for the capabilities Cyient is building in data, AI, digital engineering and Intelligent Engineering Solutions.
Building an AI Engineering Platform
Cyient is developing CYiNGINE, an agentic AI-enabled platform for lifecycle engineering intelligence. It is part of the company’s Intelligent Lifecycle Engineering strategy.
Cyient has also launched an intelligent engineering unit that focuses on AI-led growth. It targets engineering, service, quality and regulatory workflows.
The integration of TAO Digital has added platform software and data engineering skills. Management said the deal will help Cyient pursue enterprise AI and data engineering work across its existing customer accounts. Cyient did not disclose a separate revenue figure for its AI offerings.
Semiconductors: Strong Demand, Tight Supply
Cyient’s semiconductor business grew revenue 8% sequentially for the sixth quarter in a row. Its custom application-specific integrated circuit (ASIC) pipeline passed $100 million. Order intake in the custom ASIC business rose more than 50% sequentially.
Krishna Bodanapu, Executive Vice Chairman and Managing Director of Cyient, said the industry is in a strong demand cycle driven by AI. But supply is tight, he said on the earnings call.
He said foundries are running at full utilisation. Limited capacity is pushing up wafer prices and stretching planning cycles.
The company expects these conditions to weigh on semiconductor margins in the near term. Supply limits could also slow growth in the coming quarters. Cyient expects its high-voltage power products for AI data centres to start bringing in substantial revenue in FY28.
The semiconductor unit has also widened its power management range. It did so through the $85 million acquisition of Kinetic Technologies.
Manufacturing, Cash Flow and Dividend
Cyient DLM, the group’s design-led manufacturing business, grew revenue 26.5% year on year in rupee terms. Its order book hit a record. The book-to-bill ratio was above 1.6 times.
At group level, Cyient reported free cash flow of ₹214 crore. That equals 140% of profit after tax, according to the earnings-call presentation. The board declared an interim dividend of ₹12 per share.
