Cyient Shares Crash 10% Post Q4 Results; Should You Buy, Sell Or Hold?

Shares of Cyient tanked astir 10 per cent during nan trading convention connected Friday aft nan institution reported a disappointing group of capacity successful nan March 2025 4th and withheld its guidance citing uncertain demand. Brokerage firms, however, stay mixed connected nan banal station quarterly net and led to target value cuts and downgrades pursuing nan results.

Cyient reported a 39.3 per cent quarter-on-quarter (QoQ) emergence successful its nett profit astatine Rs 170.4 crore successful nan March 2025 quarter, while its gross fell 0.9 per cent QoQ to Rs 1,909.2 crore. However, its Ebit margins improved to 12.30 per cent. The midcap IT patient institution committee declared a dividend of Rs 14 per stock for nan shareholders.

Cyient's Design, Engineering and Technology (DET) segment, a cardinal business unit, reported a 3 per cent QoQ driblet successful dollar gross to $170 million, while bid intake plunged 41 per cent sequentially to $184.2 million. Constant rate gross fell 1.9 per during nan period.

Following nan announcement of results, shares of Cyient cracked 9.5 per cent to Rs 1,125 during nan trading convention Friday, pinch its full marketplace capitalization slipping beneath Rs 12,500 crore mark. The banal had settled astatine Rs 1,243 successful nan erstwhile trading convention connected Thursday.

Cyient's DET conception reported different 4th of lackluster operating performance. Increased macro uncertainty contributed to nan gross miss connected moderated expectations. The business is apt to stay challenged done 1HFY26, said Kotak Institutional Equities.

"We do not expect a meaningful betterment successful FY2026E. Some tweaks successful nan statement and attraction areas are apt nether nan caller CEO. These could require further investments, reflecting a trim successful separator guidance and a apt trim successful dividend payout. We trim EPS estimates by 8-14 per cent and little adjacent worth to Rs 1,150," it added pinch a 'reduce' rating.

Cyient’s DET conception reported QoQ CC de-growth of 1.9 per cent, chiefly owed to softness successful March influenced by world uncertainties. This softness is expected to proceed successful nan Q1FY26E arsenic well. The world uncertainty led to delays successful determination making and impacted verticals for illustration connectivity and whitethorn further effect aerospace successful nan coming quarters, said HDFC Securities.

"Amidst nan existent macroeconomic uncertainty, Cyient has decided to temporarily extremity providing guidance for FY26E. The institution secured six ample deals successful Q4, including 2 successful aerospace and 2 successful communications, pinch 3 from its apical 10 clients. We trim our gross and EPS estimates by factoring successful slower growth. We support our 'add' standing pinch a target value of Rs 1,400," it said.

"We support our 'sell' standing connected nan banal arsenic we judge a anemic 4Q and seasonally anemic 1H could lead to little gross maturation successful FY26, and margins could beryllium impacted successful a akin vein," said Motilal Oswal Financial Services. "We worth nan company’s liking successful DLM astatine a marketplace valuation pinch a holding institution discount of 20 per cent."

It trim our estimates by 5 per cent for FY26E/FY27E, mostly connected recalibration successful separator expectations and industry-wide uncertainties for cardinal maturation areas specified arsenic sustainability and aerospace. The brokerage values nan DET business astatine 17 times FY27E EPS to get astatine a target value of Rs 1,120.

Delayed aliases paused projects successful aerospace and manufacturing besides contributed to nan subdued performance, aligning pinch nan broader macro be aware and tariff-related uncertainty. Deal closures successful Q2 whitethorn beryllium slower, but awarded deals are expected to proceed pinch a insignificant displacement successful schedule, said Antique Stock Broking.

"It expects nan separator to stabilize astatine astir 15% complete 24 months pinch continued costs power framework, costs commitments, and much outcome-focused investment. Due to anemic exit successful 4QFY25 results, we trim our FY26/ 27 EPS estimates by 6 per cent and trim Cyient's DET business guardant PE aggregate to 20 times starring to a simplification successful target to Rs 1,675 (from Rs 1,900), it said.