Cyient DLM Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Cyient DLM Ltd filed with BSE on 24 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Cyient DLM reported Q1 FY27 revenue of INR3,738 million, up 34.3% year-on-year, with EBITDA growing 56.2% to INR392 million and EBITDA margin expanding to 10.5%. Profit after tax more than doubled to INR163 million, and the company closed the quarter with a record order book of INR25,989 million and a book-to-bill ratio of 1.5x. Management discussed a phased strategy of strengthening, expanding and transforming the business, including new focus areas in AI data centres, robotics and semiconductor capital equipment.
Numbers mentioned
Revenue: INR3,738 million (Q1 FY27)
p. 7
“Revenue for the quarter stood at INR3,738 million, reflecting a robust 34.3% year-on-year growth.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
EBITDA: INR392 million (Q1 FY27)
p. 7
“On profitability, EBITDA increased to INR392 million, registering a strong 56.2% year-on-year growth.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
EBITDA margin: 10.5% (Q1 FY27)
p. 7
“Importantly, our EBITDA margin improved to 10.5%, representing an expansion of 147 basis points year-on-year.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Profit after tax: INR163 million (Q1 FY27)
p. 7
“Profit after tax for the quarter was INR163 million, which is more than double compared to the corresponding period last year with a 118.2% year-on-year growth.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
PAT margin: 4.4% (Q1 FY27)
p. 7
“Consequently, the PAT margin improved to 4.4%, expanding by 168 basis points year-on-year.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Order backlog: INR25,989 million (Q1 FY27)
p. 7
“Our order backlog also remains strong at INR25,989 million, increasing by INR1,832 million quarter-on-quarter.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Order book: INR2,598 crores (Q1 FY27)
p. 6
“We recorded our highest ever order book at INR2,598 crores.”
Rajendra Velagapudi, page 6 of the filed PDF · View the filing
Order intake: INR551.9 crores (Q1 FY27)
p. 6
“Order intake for the period stood at INR551.9 crores with a healthy book-to-bill ratio of 1.5.”
Rajendra Velagapudi, page 6 of the filed PDF · View the filing
Book-to-bill ratio: 1.5x (Q1 FY27)
p. 3
“Order inflow remained extremely strong during the quarter, resulting in a robust book-to-bill ratio of 1.5x.”
Krishna Bodanapu, page 3 of the filed PDF · View the filing
Days of inventory outstanding: 162 days (Q1 FY27)
p. 8
“On inventory, our days of inventory outstanding stood at 162 days in Q1 FY27 compared to 153 days in Q4 FY26.”
R. M. Subramanian, page 8 of the filed PDF · View the filing
Net working capital days: 161 days (Q1 FY27)
p. 8
“As a result, net working capital days stood at 161 days in Q1 FY27 compared to 145 days in Q4 FY26.”
R. M. Subramanian, page 8 of the filed PDF · View the filing
Aerospace revenue share: 42% (Q1 FY27)
p. 8
“Aerospace accounted for 42% of Q1 FY27 revenue, while our industrial contributed 32%.”
R. M. Subramanian, page 8 of the filed PDF · View the filing
PCBA revenue share: 48% (Q1 FY27)
p. 9
“Moving to the product category mix, PCBA continued to remain the largest contributor, accounting for 48% of Q1 FY27 revenue.”
R. M. Subramanian, page 9 of the filed PDF · View the filing
Rest of world revenue share: 94% (Q1 FY27)
p. 9
“From a geographical mix perspective, rest of the world continues to account for the major share of business of 94%, while India contributed 6%.”
R. M. Subramanian, page 9 of the filed PDF · View the filing
Finance costs change: reduced by 29% (Q1 FY27 vs Q1 FY26)
p. 9
“Importantly, finance costs reduced by 29% year-on-year owing to lower working capital borrowings.”
R. M. Subramanian, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Book-to-bill ratio — 1.5x · FY27
stated firmly by Rajendra Velagapudi
p. 12
“So, book-to-bill ratio will be at the same thing where we are today at 1.5x. So, we will be at that number for the year too.”
Rajendra Velagapudi, page 12 of the filed PDF · View the filing
EBITDA margin (Expand phase) — 11% to 13% · FY27 to FY29
stated as an aspiration by Rajendra Velagapudi
p. 6
“Because we are leveraging the same core stack into higher value sectors, margins step up roughly to 11% to 13%.”
Rajendra Velagapudi, page 6 of the filed PDF · View the filing
EBITDA margin (Transform phase) — 13% to 18% · FY30 and beyond
stated as an aspiration by Rajendra Velagapudi
p. 6
“This is the shift from being a service provider to owning product and intellectual property and that's what lifts margins to roughly 13% to 18%.”
Rajendra Velagapudi, page 6 of the filed PDF · View the filing
B2S revenue contribution — next one year to 18 months
stated conditionally by R. M. Subramanian
p. 15
“So, we will be seeing it substantially a good revenues from them in the next one year to 18 months.”
R. M. Subramanian, page 15 of the filed PDF · View the filing
B2S margin uplift — 250 bps to 300 bps
stated conditionally by R. M. Subramanian
p. 15
“you will be getting additional 250 bps to 300 bps additional margins when we have a consolidated EBITDA margin due to the B2S opportunities.”
R. M. Subramanian, page 15 of the filed PDF · View the filing
Semiconductor capital equipment revenue growth — next 6 to 12 months
stated as an aspiration by Rajendra Velagapudi
p. 11
“No, I think we will be seeing some of the growth coming in in that area, so over the next 6 to 12 months we will be seeing more of the revenue growth which probably in turn will also give us some leverage in terms of the margins there.”
Rajendra Velagapudi, page 11 of the filed PDF · View the filing
Revenue and order intake momentum — Q2 FY27 and going forward
stated as an aspiration by Rajendra Velagapudi
p. 15
“Yes. I mean in terms of the Q2 and going forward, we will be seeing a similar momentum in the range, okay?”
Rajendra Velagapudi, page 15 of the filed PDF · View the filing
Capex — 1.75x to 2x of revenue
stated firmly by Rajendra Velagapudi
p. 21
“The capex, I think, as you said, whatever we have today, closely around 1.75x to 2x of the revenue. So, we don't need any such additional capex apart from a regular annual capex, which we'll be working out for our running the business.”
Rajendra Velagapudi, page 21 of the filed PDF · View the filing
Honeywell Aerospace ramp-up — next 18 months
stated conditionally by Rajendra Velagapudi
p. 18
“So, we'll be seeing the ramp-up coming on those things in the next 18 months.”
Rajendra Velagapudi, page 18 of the filed PDF · View the filing
Japan EAV B2S production — another year to 18 months
stated conditionally by Rajendra Velagapudi
p. 19
“And that will be probably taking another year to an 18 months for us to come into the production line, okay?”
Rajendra Velagapudi, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said there have been logistics delays and cost increases but no impact on Q1 execution due to prior planning, and order intake momentum from Israeli customers continues.
Answered by Rajendra Velagapudi
Asked by Gaurav Shukla: What is the effect of the West Asia crisis and status of pending Israeli approvals?
p. 10
“What we are seeing even now today is there is -- there are some delays in the logistics in terms of shipments and we are also seeing some of the costs going up due to these West Asia crisis at this point of time.”
Rajendra Velagapudi, page 10 of the filed PDF · View the filing
Management said they have just started this initiative with sales directors on board and will provide more detail in future quarters.
Answered by Rajendra Velagapudi
Asked by Vipraw Srivastava: What is the status of AI data centre and hyperscaler discussions?
p. 10
“Yes. So, I think we just started this thing. We have our sales directors on board in this quarter.”
Rajendra Velagapudi, page 10 of the filed PDF · View the filing
Management attributed it to rupee appreciation over the last month against the company's large exposure on both exports and imports.
Answered by R. M. Subramanian
Asked by Deepak Krishnan: What caused the FX loss in the quarter given the company is a net exporter?
p. 12
“Last quarter, the last month was rupee appreciated a bit. So, as you know, our balance sheet is pretty exposed in terms of our business is on the export side pretty large both on exports and imports.”
R. M. Subramanian, page 12 of the filed PDF · View the filing
Management cited seasonal impact from one customer and said the pipeline remains healthy with no concern for the segment.
Answered by Rajendra Velagapudi
Asked by Shubhi Gupta: Why is MedTech segment growth flat and what is the outlook?
p. 13
“Yes. I think the Med Tech is where we have some seasonal impact in terms of one of our customers right now, which is there.”
Rajendra Velagapudi, page 13 of the filed PDF · View the filing
Management said negative free cash flow stems from higher inventory and lower customer advances tied to growth, and it will turn positive once inventory and growth stabilize.
Answered by Rajendra Velagapudi
Asked by Praveen Sahay: Why is operating cash flow still negative and when will working capital normalize?
p. 14
“the negative free cash flow is essentially coming up from higher inventory and lesser customer advances.”
Rajendra Velagapudi, page 14 of the filed PDF · View the filing
Management attributed the sequential gross margin decline to budgeted investments made into the organization.
Answered by Rajendra Velagapudi
Asked by Sameet Sinha: Why did gross margin decline sequentially despite higher revenue?
p. 15
“So, the investments are where we have already budgeted and we already kept it because that is the one thing probably which is just driving up our gross margins slightly lower.”
Rajendra Velagapudi, page 15 of the filed PDF · View the filing
Management said current margin gains stem from operating leverage and filling capacity, while new segments will add further margin in the future.
Answered by R. M. Subramanian
Asked by Santhosh Seshadri: How much of margin expansion comes from new categories versus operating leverage?
p. 16
“today, the margin expansion or the -- what you're seeing is essentially because of filling the hopper and the operating leverage.”
R. M. Subramanian, page 16 of the filed PDF · View the filing
Management said about 70% of order intake came from existing customers and 30% from new customers added over recent quarters.
Answered by Rajendra Velagapudi
Asked by Deepak (Unifi Capital): What is the split of order inflow between existing and new customers?
p. 17
“probably close to around 70% of that is -- where it is from our existing customers and the balance 30% is from the new customers whom we added in the last 4 equipment, at least from the last four to six quarters.”
Rajendra Velagapudi, page 17 of the filed PDF · View the filing
Management described strong engagement with these accounts and expects extraordinary growth this year from Honeywell and Thales.
Answered by Rajendra Velagapudi
Asked by Adityapal: How is Cyient DLM positioned with large aerospace OEMs like Honeywell and Thales seeking to expand outsourcing from India?
p. 18
“That account and you also said about the Thales, I think both of the accounts is where we'll be seeing an extraordinary growth in this year.”
Rajendra Velagapudi, page 18 of the filed PDF · View the filing
Management said no additional capex is needed beyond regular annual capex, citing current capex levels relative to revenue.
Answered by Rajendra Velagapudi
Asked by Anil Mehta: What incremental capex is planned for the expansion and transformation phases?
p. 21
“whatever we have today, closely around 1.75x to 2x of the revenue. So, we don't need any such additional capex apart from a regular annual capex, which we'll be working out for our running the business.”
Rajendra Velagapudi, page 21 of the filed PDF · View the filing
Risks flagged
West Asia geopolitical crisis causing logistics delays and cost increases
p. 10
“What we are seeing even now today is there is -- there are some delays in the logistics in terms of shipments and we are also seeing some of the costs going up due to these West Asia crisis at this point of time.”
Rajendra Velagapudi, page 10 of the filed PDF · View the filing
Geopolitical uncertainties, evolving demand patterns and global supply chain disruptions
p. 3
“The quarter was marked by continued geopolitical uncertainties, evolving demand patterns and disruptions across global supply chains, including the ongoing developments in the Middle East that added further complexity to the operating environment.”
Krishna Bodanapu, page 3 of the filed PDF · View the filing
Negative operating cash flow due to elevated inventory and lower customer advances
p. 14
“the negative free cash flow is essentially coming up from higher inventory and lesser customer advances.”
Rajendra Velagapudi, page 14 of the filed PDF · View the filing
Rupee appreciation impacting export/import exposed balance sheet
p. 12
“Last quarter, the last month was rupee appreciated a bit. So, as you know, our balance sheet is pretty exposed in terms of our business is on the export side pretty large both on exports and imports.”
R. M. Subramanian, page 12 of the filed PDF · View the filing
Seasonal impact from a customer affecting MedTech growth
p. 13
“Yes. I think the Med Tech is where we have some seasonal impact in terms of one of our customers right now, which is there.”
Rajendra Velagapudi, page 13 of the filed PDF · View the filing
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