Cyient DLM Q2 profit rises 6%, order book hits record

Cyient DLM Limited reported a 26.5% year-on-year revenue increase to ₹393 crore in Q2 FY27, while its order book reached a record ₹2,813.7 crore. Net profit rose 6% to ₹34 crore, but EBITDA margin narrowed to 9% from 10% a year ago. Revenue growth was led by aerospace, which grew 62% year on year. Industrial revenue increased 29%, defence grew 13%, and MedTech advanced 14%. The order book added ₹214.8 crore from the previous quarter, providing better visibility for future revenue. However, the reported profit includes an ₹18.2 crore gain from the fair valuation of an earnout liability. Excluding this gain, normalised profit after tax stood at ₹15.82 crore, up 25.8% year on year. EBITDA increased 9.6% to ₹34.1 crore, slower than revenue growth, indicating that margins remain an area to watch. My view: The key positive is the combination of strong aerospace growth and a record order book, which supports the company's growth prospects. However, revenue growth has not translated into similar EBITDA growth, and the reported profit figure is influenced by a one-time valuation gain. Investors should track margin recovery, execution of the order book, and new business contributions from AI, data centres, robotics and semiconductor capital equipment. Cyient DLM shares were reported at ₹870.70, down 15.47% on the day. The sharp decline suggests that investors may be weighing factors beyond headline revenue growth, although the exact reason for the fall is not established by the available results. My stance: Watch the next quarterly results for margin improvement and order execution before drawing a stronger conclusion on earnings sustainability.

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