Cyient DLM Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Cyient DLM Ltd filed with BSE on 27 Apr 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 Q4 FY26 revenue of INR3,691 million, down 13.8% year-on-year, with EBITDA margin at 11.7% and PAT margin at 6.1%, both the highest of the year. For full year FY26, revenue declined 17% year-on-year to INR12,615 million while the order book closed at a record INR24,166 million, up INR5,105 million from the prior year. Management attributed the revenue decline to a large order completion in FY25, West Asia crisis-related supply chain disruptions, and delayed customer approvals, while citing a book-to-bill ratio of 1.5x for the year as support for FY27 growth.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR3,691 million (Q4 FY26)
p. 7
“For the quarter, revenue stood at INR3,691 million, reflecting a strong growth over previous quarters in the financial year.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
EBITDA: INR431 million, down 24.9% year-on-year (Q4 FY26)
p. 7
“EBITDA for the quarter is INR431 million, down 24.9% year-on-year, and the PAT came in at INR224 million, a 27.6% decline year-on-year”
R. M. Subramanian, page 7 of the filed PDF · View the filing
PAT: INR224 million, a 27.6% decline year-on-year (Q4 FY26)
p. 7
“EBITDA for the quarter is INR431 million, down 24.9% year-on-year, and the PAT came in at INR224 million, a 27.6% decline year-on-year”
R. M. Subramanian, page 7 of the filed PDF · View the filing
EBITDA margin: 11.7% (Q4 FY26)
p. 7
“At a margin level, EBITDA improved 11.7% and PAT stood at 6.1%.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Order book: INR24,166 million (Q4 FY26)
p. 7
“Coming to the order book. We ended the quarter with a strong order book of INR24,166 million with INR672 million net addition during the quarter.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Revenue: INR12,615 million, representing a 17% year-on-year decline (FY26)
p. 7
“For FY '26, revenue stood at INR12,615 million, representing a 17% year-on-year decline.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Normalized EBITDA: INR1,302 million, a decline of 10.2% year-on-year (FY26)
p. 7
“normalized EBITDA after factoring one-offs or Wage code impact and M&A expenses stood at INR1,302 million, a decline of 10.2% year-on-year, while reported EBITDA stood at INR1,268 million, down 12.6% year-on-year.”
R. M. Subramanian, page 7 of the filed PDF · View the filing
Order intake: over $208 million (FY26)
p. 6
“I am pleased to share that we secured an order intake of over $208 million for the year, resulting in a robust book-to-bill ratio of 1.5x.”
Rajendra Velagapudi, page 6 of the filed PDF · View the filing
Book-to-bill ratio: 1.5x (FY26)
p. 3
“Each quarter, we had a book-to-bill ratio of greater than 1, which ends up at being 1.5x for the full year.”
Krishna Bodanapu, page 3 of the filed PDF · View the filing
DSO: moved from low 90s to mid-70s (FY26)
p. 8
“DSO has improved steadily moving from the low 90s to the mid-70s, driven by stronger collection and billing discipline.”
R. M. Subramanian, page 8 of the filed PDF · View the filing
Order pipeline: closer to $0.5 billion
p. 16
“I think we have a very good order pipeline right now, as I said, it is closer to $0.5 billion order pipeline, which we have today”
Rajendra Velagapudi, page 16 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.
Working capital days — 100 to 120 days · a couple of years
stated as an aspiration by R. M. Subramanian
p. 16
“Our target is to reach about 100 to 120 in terms of the number of days, but we have some distance to go.”
R. M. Subramanian, page 16 of the filed PDF · View the filing
EBITDA margin — double-digit level · long run
stated as an aspiration by R. M. Subramanian
p. 19
“Hopefully, our target in the long run is to maintain the EBITDA at the double-digit level and in terms of what we are doing, okay?”
R. M. Subramanian, page 19 of the filed PDF · View the filing
Revenue growth — FY27
stated firmly by Rajendra Velagapudi
p. 10
“I think now FY '27, you'll be starting seeing the growth, year-over-year growth we'll be seeing it in all the quarters, four quarters, which is a very strong.”
Rajendra Velagapudi, page 10 of the filed PDF · View the filing
Order intake from long lead materials — FY27
stated firmly by Rajendra Velagapudi
p. 18
“we have already ordered the materials for a long -- for entire FY '27, particularly for the critical items, where there are long lead items we already placed the orders.”
Rajendra Velagapudi, page 18 of the filed PDF · View the filing
Altek growth — FY27
stated as an aspiration by Rajendra Velagapudi
p. 13
“we are very confident that we'll be seeing the growth in Altek business in FY '27.”
Rajendra Velagapudi, page 13 of the filed PDF · View the filing
Margin improvement with scale
stated conditionally by R. M. Subramanian
p. 13
“And if we have the top-up in terms of the growth, the operating leverage impact will start kicking in, and we can have something on top of this bit of it, okay?”
R. M. Subramanian, page 13 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 cited West Asia war-related material delays, defense program approval delays, and NPA approvals from customers.
Answered by Rajendra Velagapudi
Asked by Vaibhav Mishra: Why did revenue miss the guidance given in the Q3 call?
p. 10
“So these are the three main reasons where we could not able to meet our commitment what we said in the last investor call.”
Rajendra Velagapudi, page 10 of the filed PDF · View the filing
Order book consists only of purchase orders received from customers, not total contract value figures.
Answered by Rajendra Velagapudi
Asked by Sameet Sinha: How is order book/backlog defined and has the definition stayed consistent?
p. 11
“It is the purchase orders which are available with us executable in the financial year or beyond the financial year.”
Rajendra Velagapudi, page 11 of the filed PDF · View the filing
Management continues to look opportunistically at organic and inorganic growth, evaluating fit by product and geography.
Answered by R. M. Subramanian
Asked by Sameet Sinha: What structure is being considered for acquisitions given IPO proceeds are fully utilized?
p. 11
“We continue to look for both organic and inorganic growth.”
R. M. Subramanian, page 11 of the filed PDF · View the filing
Management declined to give an exact quantification, saying revenue was pushed into the next quarter.
Answered by R. M. Subramanian
Asked by Disha: Can the revenue lost due to the West Asia war be quantified?
p. 12
“We don't want to get into the exact quantification of this stuff.”
R. M. Subramanian, page 12 of the filed PDF · View the filing
Management said it would not give revenue guidance but expressed confidence in a strong year based on the order book.
Answered by R. M. Subramanian
Asked by Disha: Can we expect 25% to 50% growth for FY27?
p. 13
“On revenue guidance, we clear that we will not be giving any guidance on that.”
R. M. Subramanian, page 13 of the filed PDF · View the filing
Management attributed the absolute EBITDA decline to revenue drop and operating deleverage, while percentage margin improved or was maintained.
Answered by R. M. Subramanian
Asked by Harsh Sheth: Why did EBITDA margin dip this quarter despite moving out of lower-margin defense orders?
p. 15
“Yes, that's more reflected on the revenue drop and the operating deleverage impact, because the fixed cost continues to remain the same.”
R. M. Subramanian, page 15 of the filed PDF · View the filing
Management said other expenses reflect combined India and U.S. operations and should normalize with volume growth; on growth, they attributed the FY25 shortfall to insufficient sales headcount, now being addressed.
Answered by Rajendra Velagapudi
Asked by Kiran: Why have other expenses risen sharply despite revenue decline, and is there a structural growth issue versus competitors?
p. 20
“So there is no structural challenges, anything in the organization because we are running the business for several years.”
Rajendra Velagapudi, page 20 of the filed PDF · View the filing
Management said U.S. business inherently carries lower EBITDA margin and cross-synergy benefits with Altek have not yet been fully realized due to tariff uncertainty.
Answered by R. M. Subramanian
Asked by Adityapal: Is the EBITDA margin decline in Q4 due to investments made in Altek employee expenses?
p. 14
“In terms of the average EBITDA margin between the India and U.S. business, U.S. business is going to be lower, and that's something which is expected”
R. M. Subramanian, page 14 of the filed PDF · View the filing
Risks flagged
West Asia crisis disrupting supply chain and customer approvals
p. 4
“some of our customers have been directly impacted, and this has led to temporary disruptions in schedules and execution plans in Q4.”
Krishna Bodanapu, page 4 of the filed PDF · View the filing
Electronic component (memory) availability stress
p. 4
“there is a stress, and it's hopefully a cyclical stress in the electronic component availability with what's happening in the memory sector.”
Krishna Bodanapu, page 4 of the filed PDF · View the filing
High export exposure amplifying geopolitical impact
p. 4
“60-plus percent of our revenue comes from exports. And therefore, the geopolitics and the global issues have a disproportionate impact on us.”
Krishna Bodanapu, page 4 of the filed PDF · View the filing
U.S. tariff uncertainty affecting Altek and cross-synergy benefits
p. 14
“Altek and the growth in Altek continues to have a bit of an overhang with respect to the tariff overhang still continues to be there.”
R. M. Subramanian, page 14 of the filed PDF · View the filing
Elevated inventory due to advance stocking and long lead components
p. 8
“Inventory days remained elevated through FY '26, largely driven by advanced stocking for the long-lead components and program ramp-ups.”
R. M. Subramanian, page 8 of the filed PDF · View the filing
Supply chain disruption via cargo routes through Dubai/Doha
p. 18
“I think all the cargo comes either from Dubai or I just think Doha. So that's where I think we had a lot of challenges in getting the materials.”
Rajendra Velagapudi, page 18 of the filed PDF · View the filing
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