Cyient DLM Limited shares fell 27.5% over two trading sessions after its quarterly results, as a record order book coincided with a narrower margin at the Indian electronics manufacturer.
The stock closed at ₹747.10 on India’s National Stock Exchange on Oct. 19, down from ₹1,030.10 on Oct. 15. Cyient DLM’s order book — the value of orders outstanding — stood at a record ₹28.137 billion at Sept. 30, up ₹2.148 billion from the previous quarter.
Revenue for the quarter ended Sept. 30 rose 26.5% from a year earlier to ₹3.931 billion. Earnings before interest, taxes, depreciation and amortization, or EBITDA, increased 9.5% to ₹342 million. The EBITDA margin narrowed to 8.7% from 10.0% a year earlier.
Cyient DLM pointed to its revenue mix and purchases for product development in explaining material costs. It also cited investment in sales, strategy and capabilities. Material costs rose 34.7% from a year earlier, while employee costs climbed 28.2%; both increases exceeded revenue growth. The company said its aerospace and industrial segments led quarterly growth.
Reported profit after tax was ₹340 million, including a one-off ₹182 million earnout reversal. Cyient DLM put profit excluding that item at ₹158 million, up 25.8% from a year earlier. Its presentation listed a quarterly book-to-bill ratio of 1.6.
NDTV Profit cited margin pressure, valuation concerns after an earlier share-price rally and uncertainty over when new orders would produce revenue in its assessment of the selloff. Market data show the stock climbed about 300% between an intraday low of ₹265.20 on March 30 and an intraday high of ₹1,061 on Oct. 14. That comparison uses intraday prices, not closing prices.
Cyient DLM plans to expand into AI and data center infrastructure, robotics and semiconductor capital equipment. Its presentation sets out an intended EBITDA margin range of about 11% to 13% for its FY27–FY29 strategic expansion phase and 13% to 18% from FY30 onward. The latest reported quarterly margin was 8.7%.
