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Informist, Friday, Apr. 24, 2026

 

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--Cyient official: Likely to announce M&A deal in Q1
--Cyient official: Eyeing mid-to-high single-digit revenue growth in FY27
--Cyient official: FY27 PAT growth to top rise in revenue on higher margin
--Cyient official: Will announce new partnership in coming days
--Cyient official:Expect indirect impact of West Asia tensions to be minimal
--Cyient official: FY27 capex to be similar to FY26

 

By Shakshi Jain and Anand JC

 

NEW DELHI/MUMBAI – Cyient Ltd. is in advanced talks to sign merger and acquisition deals, and one such deal could be announced in the ongoing quarter itself, Shrinivas Kulkarni, chief financial officer of the company's digital, engineering, and technology business, told Informist in an exclusive interaction late Thursday.

 

The company, an engineering services and digital transformation solutions player, has clients who are looking to adopt more automation and digitisation, among other services. "That is where I think we might also do an M&A to help us accelerate that journey or take solution offerings, which compel them to spend in those areas," Kulkarni said, adding that multiple discussions are currently on.

 

Kulkarni said the company also has some strategic collaborations in the pipeline, which are likely to be announced in the next few days.

 

Cyient expects to clock a mid-to-high single-digit top line growth in 2026-27 (Apr-Mar), Kulkarni said. Further, the bottom line growth is expected to be higher than the top line growth as the company is looking to end the year with earnings before interest and tax margin of 15% in its digital, engineering, and technology business, Kulkarni added. 

 

The digital, engineering, and technology segment, which accounts for a brute majority of the company's overall top line, reported a consolidated net profit of INR 1.38 billion in the March quarter, down 8% on quarter from the normalised net profit for the trailing quarter. Its revenue for the quarter was INR 15 billion, up 0.8% sequentially on currency support. However, the segment's constant currency revenue was down 2.4% sequentially for the quarter. Its earnings before interest and tax margin for the quarter was unchanged on a sequential basis at 12.4%.

 

The segment's March-quarter revenue was below the company's expectations due to certain execution challenges and client-specific issues, Kulkarni said. "...We had softness in a couple of our segments...there was an execution gap internally, which we have sort of fixed. So, hopefully that will not repeat going forward and there were approval delays in certain areas where there is a budget cycle mismatch."

 

The company's consolidated net profit fell almost 31% to INR 4.28 billion in FY26. Its revenue declined at a slower 1.3% pace to INR 72.68 billion for the 12 months.

 

Of the three business segments in the digital, engineering, and technology business, transportation and mobility are seeing strong traction while network and infrastructure are expected to return to the growth trajectory soon, Kulkarni said. Among the strategic units, healthcare and life sciences are doing well, but energy and mining and minerals are struggling, he added. "...We expect all-round growth, but I think the mining, minerals, and energy sectors will continue to sort of, you know, struggle next year as well." He attributed weakness in the mining and minerals and energy sectors to client-specific issues.

 

Geographically, the company plans to diversify from the core markets of North America and Europe through a new branch in Saudi Arabia soon. "We see that as a growing market for the offerings that we have," Kulkarni said. It also has a presence in Australia.

 

The company anticipates minimal indirect impact of the ongoing war in West Asia on its business, unless matters escalate for the worse. This anticipated impact has been factored into the company's growth expectation for the year. "But at the current level, where the situation is, if that continues for some more time, I think we can live with that impact," Kulkarni said.

 

On the capital expenditure outlay for FY27, Kulkarni said the figure is usually about 2% of the company's revenues and that is likely to be the case this year as well. Shares of the company Friday closed nearly 7% lower at INR 873.05 on the National Stock Exchange.   End

 

Edited by Ashish Shirke

 

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