Cyient Ltd — earnings calls

Cyient reported Q1 FY27 DET revenue of $162.5 million, down 0.5% sequentially in constant currency, while EBIT margin expanded to 13.2%. Management said the company completed its share buyback of 6.4 million shares and closed a $30 million financing round for its semiconductor business, and announced an agreement to acquire TAO Digital Solutions. Management also said the FY27 exit target of 15% EBIT margin would take longer than originally planned due to slower revenue growth, particularly in the strategic units segment.

Cyient Limited announced the acquisition of TAO Digital in an all-cash deal valued at $218 million, with 60% paid upfront at closing and the remainder structured as two tranches of earnouts tied to EBITDA growth over two years. Management described the deal as aligning Cyient's pivot toward life cycle engineering, expanding its addressable market from a $100 billion ER&D outsourcing TAM to an estimated $2 trillion market across its existing industries. Management said the acquisition will be funded primarily through debt, is EPS accretive and ROCE positive after integration and transaction costs, and will bring the target company's technology-oriented revenue mix from high single digits to high teens.