Cyient Q3 result: Profit slips 25% YoY to ₹92 crore due to one-time provision of ₹42 crore for new labour codes; check other details

The company had posted a net profit (attributable to the shareholders of the company) of ₹122.3 crore in the year-ago period.

Revenue from operations saw a dip of 4% to ₹1,848.5 crore in Q3 FY26, as compared to ₹1,926.4 crore logged in Q3 FY25.

Cyient Q3 FY26 Numbers: QoQ Basis

On a quarter-on-quarter (QoQ) basis, profit fell 28% while revenue increased 3.7%.

The company accounted for a one-time provision of ₹42.3 crore during the quarter under review for the implementation of the new Labour Codes.

Cyient's different segments' performance

Cyient Group’s business segments include DET, DLM, and Semiconductors, among others.

Cyient's DET segment covers engineering solutions for industries like transportation & mobility (aerospace, rail, automotive), networks & infrastructure (connectivity, utilities), and strategic units (mining, energy, healthcare, life sciences).

DLM handles electronics manufacturing services, while Semiconductors focuses on chip design, development, and supply chain.

Digital, Engineering & Technology (DET) reported a revenue of ₹1,488.3 crore in the third quarter, up from ₹1,397.5 crore seen in the year-ago period.

Design Led Manufacturing (DLM) saw a slide in revenues to ₹303.3 crore, from ₹444.3 crore in the corresponding period of FY25.

Semiconductors dropped 26% to ₹61.1 crore in Q3.

During the quarter, Cyient Semiconductors, through its wholly-owned subsidiary, Cyient Cayman, signed a definitive agreement to acquire a majority stake in Kinetic Technologies for an aggregate consideration of about ₹836.6 crore.

What management said

“Achieving this growth amid a fluid macroeconomic environment and a typically soft Q3 due to furloughs demonstrates the resilience of the underlying business. On the EBIT front, the DET EBIT margin stood at 12.4%, marking a 25 bps sequential expansion. This was achieved despite the headwinds from the third tranche of wage hikes,” Cyient President and Chief Financial Officer Prabhakar Atla said.

The company’s ongoing cost optimisation programme and revenue recovery helped to fully offset additional expenses, he said, adding that the company remains on track to exit FY26 on a strong note.

“The organisational transformation initiatives spanning across GTM acceleration, technology adoption and leadership addition, coupled with consecutive quarters of sequential revenue growth and EBIT expansion, strengthen our confidence in the near- and medium-term outlook for the DET business,” Atla noted.

Shares of Cyient ended 1.41% higher at ₹1,139 apiece on the NSE on Thursday. The results were declared post-market hours.

About Cyient

Cyient, earlier known as Infotech Enterprises Limited, is a global technology company. It was founded in 1991 and is headquartered in Hyderabad. Its services are in engineering, manufacturing, data analytics, networks and operations verticals.

Business operations

Cyient provides engineering solutions, including product development and life-cycle support, along with process, network, and content engineering services. The company operates through two primary segments.

The first is the Network and Content Engineering (N&CE) segment, also referred to as utilities, telecom, and content. This segment serves customers across power, gas, telecom, transportation, and local government industries, offering services such as data conversion, data maintenance, photogrammetry, and a broad range of information technology services.

The second segment is Engineering, Manufacturing, and Industrial Products (EMI), which caters to industries including aerospace, automotive, off-highway transportation, and industrial and commercial products.