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Cyient’s Q2 FY27 performance reflected improving profitability in its Digital, Engineering and Technology (DET) business, even as organic revenue growth remained modest. The segment reported its highest EBIT in 10 quarters, with margins expanding to 14.2%, while technology order intake rose sharply, signalling demand for the company’s data, AI and digital engineering capabilities.
At the group level, revenue grew 15.3% year-on-year in constant currency to $233.9 million.
DET revenue rose 6.3% year-on-year in constant currency to $174.2 million. Its EBIT margin expanded 206 basis points year-on-year to 14.2%, while order intake increased 20.8% to $158.4 million, excluding TAO Digital. Organic DET revenue grew 0.4% year-on-year in constant currency.
“Technology order intake stood at $10.3 million, up 39.7% year-over-year, reflecting the demand we are seeing for the capabilities we are building in data, AI, digital engineering, and Intelligent Engineering Solutions,” Banerjee said.
Cyient is developing CYiNGINE, an agentic AI-enabled lifecycle engineering intelligence platform, as part of its Intelligent Lifecycle Engineering strategy. The company has also launched an intelligent engineering unit focused on AI-led growth, targeting engineering, service, quality and regulatory workflows.
The integration of TAO Digital has added platform software and data engineering capabilities to Cyient's portfolio. Management said the acquisition would help the company pursue enterprise AI and data engineering opportunities across existing customer accounts. Cyient did not disclose a separate revenue figure for its AI-related offerings.
Cyient's semiconductor business recorded 8% sequential revenue growth for the sixth consecutive quarter. Its custom application-specific integrated circuit (ASIC) pipeline exceeded $100 million, while order intake in the custom ASIC business rose more than 50% sequentially.
“The industry is in a strong demand cycle driven by AI, but supply is tight,” Krishna Bodanapu, Executive Vice Chairman and Managing Director of Cyient, said during the call.
Bodanapu said foundries were operating at full utilisation, and constrained capacity was driving higher wafer prices and longer planning cycles.
The company expects these conditions to weigh on semiconductor margins in the near term, with supply constraints potentially slowing growth in coming quarters. Cyient expects its high-voltage power products for AI data centres to begin generating substantial revenue in FY28.
Cyient DLM, the group's design-led manufacturing business, reported 26.5% year-on-year revenue growth in rupee terms. Its order book reached a record level, with a book-to-bill ratio above 1.6 times.
The semiconductor business has also expanded its power management portfolio through the $85 million acquisition of Kinetic Technologies.
At the group level, Cyient reported free cash flow of ₹214 crore, equivalent to 140% of profit after tax, according to the earnings-call presentation. The board declared an interim dividend of ₹12 per share.