Cyient DLM's 8.69% margin trails Industrials peer median
Management linked Q2 momentum to 86% Box Build growth and a 1.6x book-to-bill, while other income contributed Rs 22.61 cr.
Filed 15 Oct 2026, 16:39 IST · after market close · Cyient DLM Ltd (CYIENTDLM)
Key takeaways
- Cyient DLM reported a consolidated operating margin of 8.69% in Q2FY27, below the Industrials peer median of 12.43%.
- Other income of Rs 22.61 cr was a significant component of the Rs 39.31 cr consolidated pre-tax profit.
- Management said Box Build grew 86% YoY and Q2 book-to-bill was 1.6x.
Price around the results
Q2 profit included a sizeable non-operating contribution
Cyient DLM reported consolidated operating profit of Rs 34.17 cr on revenue of Rs 393.09 cr, resulting in an 8.69% operating margin. Other income of Rs 22.61 cr was a significant component of the Rs 39.31 cr pre-tax profit, so reported earnings were not solely operating-driven. The consolidated tax rate was 13.48%, with net profit at Rs 34.01 cr.
Margin remains below the Industrials peer benchmark
The company's 8.69% operating margin was 3.74 percentage points below the 12.43% median for 11 Industrials peers that had reported the same quarter. Cyient DLM ranked fourth from the bottom on this measure. With no quarter-on-quarter or year-on-year driver data provided, the cost factors behind the Q2 margin cannot be isolated from the reported figures.
Box Build and order intake were the operating positives
Management said Box Build grew 86% YoY, supporting a shift toward higher-value integration. The company also said its order book reached an all-time high and that Q2 book-to-bill was 1.6x. Management attributed lower H1 other income to forex impact.
Management outlined a multi-year margin and sector expansion plan
Management said the strategic pivot maps margins from approximately 9%-11% today to 11%-13% in FY27-29 and 13%-18% from FY30 onward. The company said it plans to expand from four industries to seven, adding three industries in FY27-29. Management also said three new logos were added across its core and new growth areas.
Results were filed after market close
The consolidated results were filed after market close on 15 October 2026. No market reaction is covered for this release.
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 | ₹393 cr |
| Other income | ₹23 cr |
| Expenses | ₹359 cr |
| Operating profit | ₹34 cr |
| Operating margin (%) | 8.69% |
| Interest | ₹6 cr |
| Depreciation | ₹11 cr |
| Profit before tax | ₹39 cr |
| Tax | ₹5 cr |
| Net profit | ₹34 cr |
| EPS (₹) | ₹4.28 |
Operating margin of 8.69% compares with a Industrials sector median of 12.43% across 11 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Box Build grew 86% year on year, supporting a shift toward higher-value integration.
Guidance & outlook
- The strategic pivot maps margins from approximately 9–11% today to 11–13% in FY27–29 and 13–18% from FY30 onward.
Expansion
- The company plans to expand from four industries to seven industries, adding three new industries in FY27–29.
New orders
- The order book reached an all-time high and Q2 book-to-bill was 1.6x.
- The company added three new logos across its core and new growth areas.
New initiatives
- Three new logos were added across the company’s core and new growth areas.
Problems & risks
- H1 other income was lower because of forex impact.
What to watch
- Whether operating margin holds above 8.69% in the next reported quarter.
- Whether book-to-bill remains at or above the Q2 level of 1.6x.
- Whether Box Build growth is sustained after the reported 86% YoY increase.