Cyient DLM shares tumble 19% despite profit surge and record order book

Cyient DLM shares fell almost 19% on Friday after the company posted mixed Q2‑FY27 results. The stock closed at ₹830.35 on the BSE, down from a 52‑week high of ₹1,060.10 reached two days earlier, but still about 214% above its March‑2026 low of ₹264.95.

What Happened

Revenue rose 25% year‑on‑year to ₹294.8 crore, driven by aerospace and industrial segments. Net profit jumped 43% to ₹19.4 crore versus ₹13.5 crore a year earlier. The order book hit a record ₹2,810 crore, up 23% YoY, and the book‑to‑bill ratio was 1.6. Box‑build manufacturing share grew to 37% of revenue. However, supply‑chain lead times slowed execution and higher sales‑and‑marketing spend trimmed EBITDA margins by about 130 basis points to 8.7%.

Reaction

Managing director and CEO Rajendra Velagapudi said growth momentum remains strong and the order book gives clear revenue visibility. PL Capital kept a ‘Reduce’ rating, cut its target price to ₹873 and warned about margin pressure. Motilal Oswal reiterated a ‘Buy’ call, set a target of ₹1,320 and highlighted the record order book and aerospace strength.

Outlook

Management plans to push into AI data‑centres, robotics and semiconductor equipment while completing the Altek Electronics acquisition integration. Brokers expect revenue growth over 30% in the second half of FY27 and EBITDA margins reaching 9‑10% this year, rising above 11% in FY28.

Context

A high order book often steadies investor sentiment, but margin recovery depends on how quickly new investments start earning returns.