Cyient DLM Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Cyient DLM Ltd trades at ₹904, in a confirmed uptrend and 13 weeks into that stage. That is +68.8% against its own 200-day average. It sits at 100% of a 52-week range of ₹279 to ₹904. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 27 straight weeks.

Today the stock is in a confirmed uptrend — week 13 of stage 2, confirmed. At ₹904 it trades +68.8% versus its 200-day average and sits at 100% of its 52-week range (₹279–₹904).

Against the market, two honest reads. Cumulative: over the last 3.2 years the stock moved +80% while the NIFTY 500 moved +35% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 27 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Cyient DLM Ltd's story is not scored yet against the markers our research file set on 27 June 2026. Where it sits in its own cycle: POST_IPO_DERATING_NEAR_TROUGH. Our fortnightly research layers last read it on 27 June 2026.

Our read, 27 June 2026. Post-IPO de-rating is nearly exhausted — record backlog provides multi-quarter revenue visibility, but four consecutive management commitment failures discount the premium any recovery thesis can command.

From the numbers. PE compressed 55% from the Dec 2023 post-IPO peak of 111x to a Dec 2025 trough of 27x — the compression was earnings-driven over the longer window as EPS recovered while the PE decompressed. However, the most recent…

From the price. Price stage 2, week 13 — above its 200-day line, relative strength rising.

From the research. Post-IPO de-rating is nearly exhausted — record backlog provides multi-quarter revenue visibility, but four consecutive management commitment failures discount the premium any recovery thesis can command.

🚨 Where they disagree. PE compressed 55% from the Dec 2023 post-IPO peak of 111x to a Dec 2025 trough of 27x — the compression was earnings-driven over the longer window as EPS recovered while the PE decompressed. However, the most recent move (27x in Dec 2025 to 50x in Jun 2026) is a PE re-expansion while TTM EPS fell slightly, meaning the market re-rated the stock upward on backlog/recovery expectations ahead of earnings delivery. At the current 50x, the PE is at the 17th percentile of own history, which looks cheap; but the cycle-normalized PE (at mid-cycle 9.2% OPM) is 67x at the 50th percentile — not cheap on normalized earnings. FIIs have exited (0.79% from 7.76% in Sep 2024) while DIIs hold 26.67%. The…

What is proven. Post-IPO de-rating is nearly exhausted — record backlog provides multi-quarter revenue visibility, but four consecutive management commitment failures discount the premium any recovery thesis can command.

What is not proven yet. Two consecutive quarters of FY27 revenue below the corresponding FY26 quarter — which would signal the backlog deferral chain has extended beyond the West Asia narrative — or a fifth management commitment miss on the stated goal of year-on-year growth in each FY27 quarter would indicate the forecasting problem is structural rather than cyclical.

🚨 What would change our mind. Two consecutive quarters of FY27 revenue below the corresponding FY26 quarter — which would signal the backlog deferral chain has extended beyond the West Asia narrative — or a fifth management commitment miss on the stated goal of year-on-year growth in each FY27 quarter would indicate the forecasting problem is structural rather than cyclical.

🚨 Layer 1 read, 27 June 2026 — DROP. Cheap-vs-its-own-history but revenue is still shrinking and management has missed four commitments — recovery is a promise, not a fact. Cyient DLM's revenue fell 17% in FY26 and is still down year-on-year in the latest quarter as it laps a big prior-year defence order, while the multiple looks cheap only against its own post-IPO bubble (50x is absolutely expensive). The one real positive is a rebuilt record order backlog (2,416 crore, 1.5x book-to-bill) and operating cash flow finally turning positive, but management has missed or withdrawn four commitments in three calls, so the turn is unverified. It survives as the lowest-ranked watch name, a borderline drop.

What would change Layer 1’s mind. Per the timeline's own falsification: two consecutive FY27 quarters with revenue BELOW the corresponding FY26 quarter, or a fifth management commitment miss on the FY27 'YoY growth every quarter' goal, confirms the forecasting problem is structural and flips this to DROP; conversely Q1 FY27 revenue clearing the Rs 278 Cr base (M1) with the backlog converting would lift the rank.

🚨 What the surface reading misses. The surface reading is: PAT Rs 32 cr represents 113% YoY growth — apparent earnings acceleration The research reads it further: Other income of Rs 23 cr constituted 64% of PBT (Rs 36 cr); operating profit was only Rs 31 cr. The one-off ledger flags this as a high-severity other-income spike. Clean operational PAT is approximately Rs 16 cr — the operating business earned Rs 16 cr, not Rs 32 cr. The 113% PAT YoY is an artifact of non-operating income, not an earnings inflection.

Sources: our stock research file (27 June 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Cyient DLM Ltd reported ₹374 Cr of revenue in the Jun 26 quarter, +34.5% year on year. Over 7 years it has compounded at 14.8% a year. The last full year, FY26, came in at ₹1,261 Cr. The last four reported quarters add to ₹1,357 Cr.

Why this happened. The company ended FY26 with Rs 2,416 cr backlog, up Rs 511 cr year-on-year, representing book-to-bill of 1.5x for the full year with book-to-bill above 1x in every quarter. Order intake of $208 million in FY26 was achieved despite the revenue decline, demonstrating customer demand was present even as execution timing slipped. At historical 50-60% conversion per year, this backlog implies Rs 1,200-1,450 cr of FY27 revenue, consistent with the management's QoQ growth guidance. The 18-24 month execution cycle is longer than typical EMS, reflecting the complex, multi-layer PCBA and box-build nature of Cyient DLM's programs.

FY26 revenue came in at ₹1,261 Cr (−17.0% on the year), capping 7 years at 14.8% compound. The latest quarter (Jun 26) printed ₹374 Cr, +34.5% year on year.

Pace check: the last four quarters averaged −7.8% growth against the decade's 14.8% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −11.8% over the last 4 quarters against +4.9%/yr over the last 8 — rolling over; TTM profit +26.6% vs +10.0%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Cyient DLM Ltd's operating margin is 10.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 3.0% to 12.0%. The current quarter sits inside that band.

Why this happened. Management stated in the July 2025 call that capacity utilization was approximately 55-60% on a full-year basis. The Q4 FY26 quarter (Rs 369 cr revenue, 12% OPM) demonstrates what happens when the lines are loaded — at that revenue level, fixed cost absorption pushed OPM 300 basis points above the Dec 2024 trough of 6%. Additional PCBA line capability is deployable within 3-6 months per management. If FY27 revenue recovers toward Rs 1,500 cr, the same operating leverage would sustain OPM at 10-12% without incremental fixed cost addition.

The latest quarter's operating margin is 10.0%, +1.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 3.0%–12.0%.

Why the margin moved: operating margin went +1.5 pp year on year while gross margin went −2.3 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Cyient DLM Ltd earned ₹16.0 Cr of net profit in the Jun 26 quarter, +128.6% year on year. Full-year FY26 profit was ₹73.0 Cr. That is 4.3% of the quarter's revenue. The same quarter a year earlier earned ₹7.0 Cr.

Jun 26 profit was ₹16.0 Cr, +128.6% year on year. On the full year, FY26 printed ₹73.0 Cr (+7.4%).

Why profit moved: revenue contributed +34.5% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +53.2% vs revenue −7.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years −39% of Cyient DLM Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹54.0 Cr of operating cash against ₹73.0 Cr of profit. After ₹48.0 Cr of capital spending, ₹6.0 Cr was left as free cash.

FY26: operating cash of ₹54.0 Cr against reported profit of ₹73.0 Cr, leaving free cash of ₹6.0 Cr after ₹48.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is −39% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −39%: the cash cycle stretched 164 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 164 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Cyient DLM Ltd's cash conversion cycle runs 270 days in FY26, up from 106 days in FY21. Capital spending ran ₹294 Cr over the last 3 years. At FY26 sales of ₹1,261 Cr each day of that cycle holds about ₹3.5 Cr, so roughly ₹933 Cr sits inside the business at any moment.

FY26: debtors at 89 days, inventory at 314 days — roughly 10.3 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 270 days, looser than FY21's 106.

The full loop: cash goes out to suppliers and production on day 0; stock waits 314 days to sell; customers pay about 89 days after that; and suppliers themselves are paid at 133 days — netting out to the 270-day cycle.

In money terms: at FY26 sales of ₹1,261 Cr, each day of the cycle holds about ₹3.5 Cr — so the 270-day loop keeps roughly ₹933 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹294 Cr over the last 3 fiscal years against ₹99.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Cyient DLM Ltd earns a ROCE of 10% in FY26. That is up from a trough of 4% in FY20. Return on invested capital clears the cost of that capital by −5.0 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 5.8% net margin on 0.77× asset turns.

FY26 ROCE is 10%, recovered from a FY20 trough of 4% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 5.8% net margin × 0.77× asset turns × 1.62× balance-sheet leverage ≈ 7.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 7.0% − 12.0% = a −5.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Cyient DLM Ltd carries total debt of ₹172 Cr against shareholder equity of ₹1,012 Cr as of Jun 26, a debt-to-equity of 0.17 — effectively unlevered. On the annual view that ratio went from 4.38 in FY22 to 0.17 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹172 Cr against shareholder equity of ₹1,012 Cr — a debt-to-equity of 0.17. On the annual view, debt-to-equity went from 4.38 (FY22) to 0.17 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 14.5 points of Cyient DLM Ltd over 8 quarters, the biggest move on the register. That takes promoters to 52.1% of the company. Domestic institutions moved +11.8 points over the same window, to 29.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −14.5 points over 8 quarters to 52.1%; Domestic institutions: +11.8 points over 8 quarters to 29.2%; Foreign institutions: −4.9 points over 8 quarters to 0.2%.

Why the register moved: rotation — foreign institutions −4.9 points against domestic institutions +11.8 points over 8 quarters, with promoters −14.5 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Cyient DLM Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Cyient DLM Ltd trades at 87.4× P/E, at the pricey end of its own range (71st percentile). Its long-run median P/E is 66.1×, measured across 3.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 87.4× is at the pricey end of its own range (71st percentile), against a long-run median of 66.1× measured over 3.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +7.6% against a +98.2% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 3y, of the +9.0%/yr price move, ~+19.9%/yr came from earnings growth and ~−10.9 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 28 June 2026 price, Cyient DLM Ltd was paying for profit growth of about 30.2% a year. Today the market pays 87.4× P/E, the 71st percentile of its own 3-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is the whole of what a buyer is backing.

How to hold this number: it is a reading of one day's price, taken on 28 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Cyient DLM Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 11.3% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

57.0/100 — rank 4 of 9 in Consumer Electronics - EMS · 100% evidence confidence

Cyient DLM Ltd scores 57.0 out of 100 against the 9 companies it is compared with in Consumer Electronics - EMS, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 19.8 + 11 + 6.2 + 20 = 57. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Cyient DLM Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Market Outlook Rebased · 21 July 2026. In April 2026, management projected the global EMS market would grow to nearly $1.1 trillion by 2033 from approximately $650 billion in 2025. In July 2026, management instead used a lower current market base of $625 billion but projected $1.13 trillion by 2030, implying a materially faster growth trajectory and a three-year acceleration in the endpoint without reconciling the change.

Expand-Phase Priorities Shifted · 21 July 2026. In April 2026, management described the Expand phase as targeting automotive, Indian defense, AI infrastructure manufacturing, and vertical integration across cable, sheet metal, and machining. In July 2026, management redefined the FY27-FY29 Expand phase around robotics and AI data centers, while presenting automotive and defense as part of the existing core; it did not explain whether the previously stated expansion initiatives and vertical integration agenda were deferred, absorbed into the core, or dropped.

🚨 Q4 FY26 YoY Revenue Growth Commitment Missed · 21 April 2026. In both prior calls, management gave explicit and high-confidence commitments that Q4 FY26 would deliver year-on-year revenue growth. In the Jan 2026 call, the CEO said he was 'confident' of Q4 YoY growth, and the Oct 2025 CFO similarly affirmed this expectation categorically. The Apr 2026 call disclosed Q4 revenue came in down 13.8% year-on-year, directly contradicting both stated commitments and prompting an analyst to challenge management in Q&A on the specific miss. Later call (Apr 2026): “On a year-on-year basis, it is down by 13.8%, mainly due to a large order closure in Q4 FY25. We also observed some moderation in customer off-take due to the crisis in West Asia and project execution phasing getting extended.”

West Asia Stability Risk Assessment Reversed · 21 April 2026. In the Oct 2025 call, Chairman Krishna Bodanapu expressed strong optimism that West Asia stability was returning due to Trump-era ceasefire efforts and specifically stated this 'will also greatly support stability in our business' given Israel's importance as a market. By the Apr 2026 call, management cited the continuing West Asia crisis as a primary driver of Q4 FY26 revenue underperformance, noting it disrupted supply chains, delayed materials, and prevented customer clearances—a direct reversal of the Oct 2025 risk assessment that had explicitly anticipated a stabilizing environment. Later call (Apr 2026): “what continues is the crisis in West Asia. Some of our customers have been directly impacted, and this has led to temporary disruptions and schedule changes in execution plans in Q4.”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions