Cyient DLM Limited (CYIENTDLM) AI Stock Analysis

• Market Cap: ₹24.06B
• Dividend Yield: N/A
• Average Volume (3M): 27.32K
• Price to Earnings (P/E): 73.4
• Beta (1Y): 1.25
• Revenue Growth: 9.86%
• EPS Growth: 21.38%
• Country: IN
• Employees: 722
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.40
• Shares Outstanding: 79,364,395
• 10 Day Avg. Volume: 49,558
• 30 Day Avg. Volume: 27,323
• PEG Ratio: 28.30
• Price to Book (P/B): 3.86
• Price to Sales (P/S): 2.41
• P/FCF Ratio: -16.04
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 9.24
• Revenue Forecast (FY): ₹13.13B

• Rating: 63 Neutral
• Price Target: ₹332.00 ▼(-16.39% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid top-line growth and improved gross profitability, tempered by weak cash flow generation and some efficiency/leverage concerns. Technicals are a significant drag due to a pronounced downtrend across major moving averages with negative MACD, despite oversold readings. Valuation is moderately unfavorable given the ~30 P/E and no dividend yield data.

Positive Factors

Revenue growth & gross margin improvement

Sustained top-line growth with a materially higher gross margin indicates improving product mix and production efficiency. That combination supports scale economics, strengthens program-level profitability for long-cycle aerospace/medical contracts and underpins durable cash generation potential as volumes normalize.

Improved leverage and equity base

A stronger equity fraction and a lower debt-to-equity ratio improve financial resilience and funding optionality. This structural leverage improvement gives the company room to support long-term program commitments, invest in capacity and weather cyclical headwinds without immediate refinancing pressure.

Design-led EMS in regulated, high-reliability sectors

Focus on regulated, high-reliability end markets and design-led services creates higher barriers to entry and stickier customer relationships. These sectors favor long program lives, recurring aftermarket work and premium engineering services, supporting sustainable revenue visibility and margin stability over multi-year cycles.

Negative Factors

Negative free cash flow

Persistent negative free cash flow signals that earnings are not converting into cash sustainably. Over months this reduces internal funding for capex, working capital and growth initiatives, increases reliance on external financing, and can constrain strategic flexibility during industry slowdowns.

High liabilities and falling ROE

Elevated liabilities relative to assets and a declining ROE reflect capital efficiency headwinds. Over time this can limit the company’s ability to reinvest profitably, raise the cost of capital, and pressure returns to shareholders unless operational productivity or asset utilization improves materially.

Weaker operating efficiency (EBIT margin decline)

A declining EBIT margin points to deteriorating operating leverage or rising underlying costs versus revenues. If sustained, margin erosion will compress operating cash flow and limit reinvestment capacity, making it harder to fund higher-value system integration work that drives long-term profitability.

Cyient DLM Limited Business Overview & Revenue Model

Company Description

Cyient DLM Limited provides electronic manufacturing solutions in India and internationally. The company offers integrated manufacturing, electronics manufacturing, mechanical manufacturing, additive manufacturing, and value-added services. It also engages in the machining of components for aerospace, automotive, and defense industries. The company serves aerospace and defense, automotive, communications, energy, geospatial, industrial and heavy equipment, healthcare and life sciences, mining, oil and gas, power generation, rail transportation, semiconductor, and utilities industries. The company was founded in 1991 and is based in Mysuru, India. Cyient DLM Limited is a subsidiary of Cyient Limited.

How the Company Makes Money

Cyient DLM generates revenue primarily through its engineering and technology services, which involve project-based contracts, long-term partnerships, and service agreements with clients across different industries. Key revenue streams include consulting services, custom engineering solutions, and outsourcing of manufacturing processes. The company may also engage in strategic partnerships with technology providers and industry leaders to enhance its service offerings and expand its market reach. These collaborations often lead to joint ventures or co-development initiatives that contribute to additional revenue opportunities.

Cyient DLM Limited Financial Statement Overview

Summary

Strong revenue growth (+27.5%) and improved gross margin (27.1%) support the score, but weakening EBIT margin (6.8%), high liabilities vs. assets, lower ROE (7.2%), and negative free cash flow (-2.28B) materially reduce overall financial quality.

Income Statement

Cyient DLM Limited has demonstrated robust revenue growth over the past few years, with the most recent annual revenue showing a significant increase of 27.5% compared to the previous year. The gross profit margin has improved to 27.1% from the prior year's 22.3%, indicating enhanced efficiency in managing production costs. Net profit margin also improved slightly to 4.5%. However, the EBIT margin has decreased to 6.8% from the previous year, suggesting some challenges in operational efficiency. Overall, the income statement reflects strong revenue growth, improved profitability, but slight operational efficiency concerns.

Balance Sheet

The balance sheet of Cyient DLM Limited shows a healthy equity position with a significant increase in stockholders' equity to 56.1% of total assets. The debt-to-equity ratio has improved to 0.32 from 0.21, suggesting better leverage management. However, total liabilities remain high in relation to total assets, posing potential risk. The return on equity has decreased to 7.2% from the previous year, indicating lower efficiency in generating returns from the equity. While the company maintains a stable equity base, high liabilities and declining ROE require attention.

Cash Flow

Cyient DLM Limited's cash flow statement indicates challenges with generating free cash flow, as seen by the negative free cash flow of -2.28 billion. The operating cash flow to net income ratio is negative, reflecting inefficiencies in cash generation from operations. Despite these challenges, the company has managed its capital expenditures effectively. Overall, the cash flow situation highlights significant areas for improvement in operational cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.40B	15.20B	11.92B	8.32B	7.21B	6.28B
Gross Profit	4.58B	1.71B	2.66B	1.87B	1.77B	1.33B
EBITDA	1.64B	1.63B	1.39B	922.34M	919.91M	548.27M
Net Income	649.43M	680.76M	611.96M	317.27M	397.95M	118.14M
Balance Sheet
Total Assets	0.00	16.94B	16.03B	11.05B	7.77B	6.45B
Cash, Cash Equivalents and Short-Term Investments	471.17M	2.82B	4.58B	773.41M	768.59M	163.95M
Total Debt	0.00	3.01B	1.92B	3.56B	3.37B	2.79B
Total Liabilities	-9.49B	7.44B	6.94B	9.07B	7.00B	6.07B
Stockholders Equity	9.49B	9.49B	9.09B	1.98B	771.12M	376.52M
Cash Flow
Free Cash Flow	0.00	-2.28B	-1.04B	445.03M	401.23M	75.41M
Operating Cash Flow	0.00	-623.94M	-705.41M	521.05M	485.37M	349.28M
Investing Cash Flow	0.00	1.27B	-4.28B	-1.42B	-324.14M	-9.01M
Financing Cash Flow	0.00	-587.28M	4.79B	721.78M	460.67M	-428.16M

Cyient DLM Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 397.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CYIENTDLM, the sentiment is Negative. The current price of 397.1 is above the 20-day moving average (MA) of 346.33, above the 50-day MA of 376.74, and below the 200-day MA of 434.76, indicating a bearish trend. The MACD of -18.91 indicates Positive momentum. The RSI at 26.23 is Positive, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CYIENTDLM.

Cyient DLM Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DATAMATICS	72 Outperform	₹43.31B	32.89	―	0.58%	18.81%	29.35%
NUCLEUS	72 Outperform	₹20.26B	29.12	―	1.34%	6.64%	4.63%
SYRMA	66 Neutral	₹142.44B	34.37	―	0.20%	1.30%	111.88%
CYIENTDLM	63 Neutral	₹24.06B	73.43	―	―	9.86%	21.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVALON	60 Neutral	₹63.13B	44.93	―	―	46.80%	201.41%
CENTUM	55 Neutral	₹40.01B	-13.94	―	0.25%	10.29%	―

Cyient DLM Limited Corporate Events

Cyient DLM Posts Q3 FY26 Earnings Call Recording for Investor Access

Cyient DLM Limited has notified the stock exchanges that it has made available the recording of its earnings conference call related to the financial results for the third quarter and the nine months ended 20 January 2026, in compliance with Regulation 46 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. By publishing this earnings call recording link, the company is enhancing transparency and access to financial disclosures for investors and other stakeholders, supporting informed decision-making and aligning with regulatory expectations on timely and accessible communication.

Cyient DLM Clears Q3 FY26 Results, Proposes IPO Fund Reallocation and Revamps Board Committees

Cyient DLM Limited’s board has approved the company’s unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, showing continued revenue generation and profitability, and underscoring operational momentum across its design-led electronics manufacturing business. The board also cleared a proposal to change the originally stated objects of the company’s IPO funds, subject to shareholder approval via postal ballot, and reconstituted key board committees—Nomination and Remuneration, Audit, and Risk Management—placing independent directors in chair roles, a move that signals a tightening of governance structures and potentially sharper oversight of capital deployment and risk for investors.

Cyient DLM Releases Q3 FY26 Investor Presentation on Nine-Month Performance

Cyient DLM Limited has released an investor presentation detailing its financial performance for the third quarter and nine-month period ended 31 December 2025. The presentation, which has been shared with the Bombay Stock Exchange and the National Stock Exchange and made available on the company’s website, is intended to update shareholders and market participants on the company’s recent results and business developments, underscoring its ongoing engagement with capital markets and regulatory transparency.

Cyient DLM Appoints Giridhar Aramane as Independent Director

Cyient DLM Limited has announced the appointment of Mr. Giridhar Aramane as a Non-Executive Independent Director, effective November 26, 2025, for a term of three years, pending shareholder approval. This strategic addition to the board is expected to enhance the company’s governance and leverage Mr. Aramane’s extensive experience in the Indian Administrative Service, potentially strengthening Cyient DLM’s industry positioning and operational oversight.