Cyient's 13.98% operating margin trails the IT peer median
The consolidated margin was 4.55 percentage points below the median of 14 reported IT peers, while management highlighted semiconductors, Defense and AI.
Filed 22 Oct 2026, 16:26 IST · after market close · Cyient Ltd (CYIENT)
Key takeaways
- Cyient reported a consolidated operating margin of 13.98%, 4.55 percentage points below the median for 14 IT peers.
- Other income of Rs 5.6 cr was not the main source of the Rs 196.7 cr pre-tax profit.
- Management said Defense, semiconductors and AI offer the highest growth opportunities, while Cyient Semiconductors delivered +8% QoQ growth for the sixth consecutive quarter.
Price around the results
Cyient's margin remains below the reported IT peer set
Cyient's consolidated Q2FY27 operating margin was 13.98%, with operating profit of Rs 312.4 cr on revenue of Rs 2,235.0 cr. The margin was 4.55 percentage points below the median for 14 IT peers that had reported the quarter, placing Cyient fourth from the bottom of that comparison.
Interest and depreciation widened the gap below operating profit
Depreciation of Rs 84.0 cr and interest of Rs 37.3 cr reduced operating profit of Rs 312.4 cr to pre-tax profit of Rs 196.7 cr. Other income was Rs 5.6 cr against pre-tax profit, so reported profit was not chiefly supported by non-operating income. The reported tax rate was 32.64%, with net profit at Rs 132.5 cr.
Management points to semiconductors, AI and Defense
Management said Defense, semiconductors and AI present the highest opportunities for growth. It said TAO Digital's acquisition strengthens platform software and data engineering capabilities, including support for data foundations and enterprise AI adoption. Management described CYiNGINE as an Agentic AI-enabled lifecycle engineering intelligence platform measured against customer KPIs. It also reported that Cyient DET achieved its highest-ever second-quarter order intake and highest EBIT in ten quarters.
Results were filed after market close
The consolidated results were filed after market close on 22 October 2026. A post-results market reaction is therefore not yet assessable.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹2,235 cr |
| Other income | ₹6 cr |
| Expenses | ₹1,923 cr |
| Operating profit | ₹312 cr |
| Operating margin (%) | 13.98% |
| Interest | ₹37 cr |
| Depreciation | ₹84 cr |
| Profit before tax | ₹197 cr |
| Tax | ₹64 cr |
| Net profit | ₹133 cr |
| EPS (₹) | ₹11.54 |
Operating margin of 13.98% compares with a Information Technology sector median of 18.53% across 14 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +7.11% | +7.49% |
Volume on the results session was 25.21× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Cyient Semiconductors grew revenue 8% quarter on quarter for the sixth consecutive quarter.
- Cyient DET recorded its highest-ever second-quarter order intake and highest EBIT in ten quarters.
Guidance & outlook
- Cyient identifies Defense, semiconductors and AI as its highest growth opportunities.
Expansion
- TAO Digital’s acquisition strengthens Cyient’s platform software and data engineering capabilities.
New initiatives
- CYiNGINE is an Agentic AI-enabled lifecycle engineering intelligence platform measured against customer KPIs.
- TAO Digital’s integration expands support for data foundations and enterprise AI adoption.
- Cyient is pursuing an end-to-end group offering spanning engineering, silicon, manufacturing and lifecycle support.
What to watch
- Whether consolidated operating margin moves above 13.98%.
- Whether Cyient Semiconductors sustains its reported +8% QoQ growth after six consecutive quarters.
- The next-quarter tax rate against 32.64%.