Cyient Shares Plunge 9.5% On Weak Q4 Earnings, Cautious Outlook

Shares of Cyient plummeted as much as 9.5% in early trade on April 25 as investors shun the stock after the company’s disappointing earnings for the March quarter. Combined with that, a cautious outlook from the management as it refrained from providing any growth guidance for FY26 in the face of global trade uncertainties further dragged sentiment.

Revenue for the information technology major fell 0.9% sequentially to Rs 1,909.2 crore, even as EBIT margins improved to 12.3% from 11% led by operational efficiencies.

Better operational performance helped the IT company deliver an over 39% sequential surge in its Q4 net profit. The uptick in Cyient’s bottomline by carried by better execution and cost control measures.

Regardless of that, a closer look at the segmental performance shows cracks in demand for the company. The Design, Engineering and Technology (DET) services segment, a core business unit, reported a 3% quarter-on-quarter decline in dollar revenue to $170 million, with order intake dropping sharply by 41% to $184.2 million. The management attributed a part of this growth decline to to evolving uncertainties through FY25 compared to the previous year.

In the transportation segment, constant currency revenue declined 1.1% quarter-on-quarter while the connectivity vertical saw a revenue drop of 4%. On the other hand, the sustainability segment posted a marginal 1.1% sequential rise. Meanwhile, revenue from new growth areas fell 5.9% on a sequential basis.

Meanwhile, more than the company’s disappointing numbers, it was the caution over tough times ahead, clearly visible in the management commentary that spooked investors. "While there are some uncertainties in the near term, we are working very closely with our customers in navigating through the current challenges," Cyient’s management said. "We expect this to last at least through the first half of FY26."

On the technical front, analysts at Axis Securities noted a 51% spike in implied volatility for Cyient, which according to the firm, indicates that options are becoming more expensive, prompting traders to seek risk management strategies to mitigate price fluctuations.