Cyient DLM543933Earnings call transcript
Q2 FY27 call: order backlog INR2,813 crores, book-to-bill over 1.6x, revenue growth above 26%
Transcript of the Q2 FY27 earnings call held on 15 October 2026.
By ScoutQuest · · 3 min read
- Order Backlog
- INR2,813 crores
- Book-to-Bill
- over 1.6x
- Revenue Growth
- Q2 more than 26% year-on-year; H1 FY27 more than 30%
The update is the transcript of the Q2 FY27 earnings call held on 15 October 2026. Management on the call was Non-Executive Chairman Krishna Bodanapu, Managing Director and CEO Rajendra Velagapudi, and CFO R.M. Subramanian.
Order book and revenue
- Order backlog stands at INR2,813 crores, on top of which the sales pipeline is in excess of $1 billion.
- Book-to-bill ratio remained at over 1.6x in Q2, supported by strong order inflows from large OEMs.
- Order book momentum has been sustained for 6 continuous quarters, and the record order book of the previous quarter was surpassed.
- Revenue grew more than 26% year-on-year in the quarter, described as broadly in line with expectations; H1 FY27 revenue growth was more than 30%.
- Growth was seen across all key segments, with aerospace and industrial growing faster while defense and medical gain momentum.
- Execution continued despite supply chain shortages, longer lead times and geopolitical uncertainty, particularly in the memory market.
Strategy
- The long-term pivot is described in phases: strengthen, expand and transform.
- Strengthen: the business is anchored in four core industries, namely aerospace and defense, medical, industrial, and automotive focused on electric vehicles. The margin framework for this phase is approximately 9% to 11%.
- Expand, from FY27 to FY29: the portfolio is to widen from four industries to seven, adding robotics and AI data center as key growth areas and sharpening focus on semiconductor capital equipment. The margin framework for this phase is approximately 11% to 13% as business mix evolves and scale improves.
- Management said it will enter adjacencies only where customer requirements align with its engineering, manufacturing, quality and supply chain strengths.
Market backdrop cited
- The global EMS industry is described as being on a structural growth path, with the high reliability EMS segment where the company operates representing a large opportunity.
- Structural tailwinds named were rising demand for AI and data center infrastructure, semiconductor capital equipment, and robotics with growing electronics content. The company sees AI data center box build solutions, cables and cooling controls as a natural adjacency.
Investments and margin commentary
- Continued investment was flagged in the sales and go-to-market organisation and in the build-to-spec business, where engineering is done upfront, IP is co-owned with customers and manufacturing responsibility runs for many years.
- These were described as deliberate investments that have an impact on margins in the near term, while being important for building a stronger and more scalable business.
- The stated focus remains profitable growth, operating leverage and sustainable margin improvement over the medium to long term. The sales leadership team was strengthened recently.
What a retail investor can take away
- The key operating message is a record order backlog of INR2,813 crores, a book-to-bill of over 1.6x and growth of more than 26% year-on-year in the quarter, which management links to revenue visibility.
- Management placed the margin framework at approximately 9% to 11% in the current phase and approximately 11% to 13% for the FY27 to FY29 expansion phase, contingent on business mix and scale.
- Management said it is confident the momentum will sustain through the rest of the year and into next year, while noting near-term margin pressure from ongoing investments.
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More numbers
- Order backlogINR2,813 crores
- Sales pipelinein excess of $1 billion
- Book-to-bill ratio in Q2over 1.6x
- Q2 revenue growth year-on-yearmore than 26%
- H1 FY27 revenue growthmore than 30%
- Margin framework, strengthen phaseapproximately 9% to 11%
- Margin framework, expand phase (FY27 to FY29)approximately 11% to 13%
- Consecutive quarters of order book momentum6 continuous quarters
Source: BSE · 23 Oct 2026
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