Cyient DLM Limited – Investor Presentation Summary

Key Operational Highlights

  • Highest-ever order book since IPO achieved in Q1 FY27
  • Book-to-Bill ratio of 1.5x driven by both existing and new clients
  • B2S lab capacity expanded from 6,000 to 15,000 sq ft
  • NADCAP certification achieved for Cable Harness assembly audit at Mysore Unit
  • Two new client logos added across Industrial and Automotive segments

Key drivers of operational performance: Strong order pipeline from key customers, expansion of lab capacity, and addition of new clients in core segments.

Segment-wise Performance

  • Aerospace: 40% YoY growth
  • Industrial: 90% YoY growth
  • Defense: 35% YoY growth
  • Medical Technology: Flat YoY growth

Explanation of significant changes in segment performance: Aerospace and Industrial segments led revenue share and delivered strong growth, while Medical Technology growth remained flat year-over-year.

Financial Highlights

Revenue: ₹3,738 million

EBITDA: ₹392 million (normalized)

PAT: ₹163 million (normalized)

EPS: Not Specified

Margins: EBITDA margin 10.5%, PAT margin 4.4%

YoY/QoQ comparison: Revenue increased 34.3% YoY from ₹2,784 million in Q1 FY26. EBITDA increased 56.2% YoY from ₹251 million. PAT increased 118.2% YoY from ₹75 million.

Drivers of financial performance: Higher revenue growth, lower working capital borrowings reducing finance cost by 29.1% YoY, though partially offset by higher material costs (39.3% increase) and employee costs (11.5% increase).

Comparison to market estimates: Not Specified

Key Risks: Not Specified

Product Category Revenue Split

  • PCBA: Highest share with 21% YoY growth
  • Box Build: Second highest share with 85% YoY growth
  • Others: Includes B2S business

Geographical Revenue Split

  • Rest of the World (ROW): Higher share from increased demand in Aerospace, Medical & Industrial customers outside India
  • India: 6% of business mix primarily from A&D, Auto and Medtech segments

Regional Breakdown: Not Specified

Working Capital Metrics

  • DIO (Days Inventory Outstanding): 77 days in Q1 FY27 (74 days in Q1 FY26)
  • DSO (Days Sales Outstanding): 74 days in Q1 FY27 (72 days in Q1 FY26)
  • Customer Advance: Not Specified in days
  • NWC (Net Working Capital): Not Specified in days
  • Operating free cash flow for Q1 FY27: ₹-171 million

Financial Health Insights: Lower working capital borrowings drove 29.1% reduction in finance costs year-over-year.

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Lab capacity expansion from 6,000 to 15,000 sq ft for B2S platforms.

Strategic & R&D Initiatives

Investments in Innovation: B2S platforms with strong order pipeline from key customers

Expected impact on growth: Not Specified

Strategic Rationale: Focus on widening industry coverage and elevating value proposition, with specific focus on Robotics (high-reliability subsystems, control electronics) and AI infrastructure & data center (high-complexity hardware categories).

Industry Trends & Business Environment

Macro/Industry Trends: Current global EMS market estimated at $625-650B with potential to reach $1.1T by 2033, representing 6%+ blended market CAGR. Rising electronics content with focus on more compute, sensing and connectivity per product. AI infrastructure demand driving new hardware categories and capacity expansion. Supply-chain regionalization and China+1 redistributing manufacturing globally. Shift toward high-mix, high-reliability builds over commodity volume work. Semiconductor growth with Chiplets, 2.5D/3D packaging and HBM raising back-end equipment, test and assembly complexity.

Impact on Company: Company is focusing on core segments (Aerospace & Defense, Industrial, Medical, and Automotive) driven by focus on Power Electronics, with strategic pivot to widen industry coverage and elevate value proposition.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on core segments including Aerospace & Defense, Industrial, Medical, and Automotive driven by focus on Power Electronics. Strategic lanes include Robotics (needs high-reliability subsystems, control electronics and test assemblies) and AI infra & data center (AI creating electronics-heavy, high-complexity hardware categories suited to specialized EMS players).

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified