The company’s DET (digital, engineering, and technology) segment posted a revenue of Rs 1,480 crore for the third quarter of fiscal 2025, marking a 2.1% quarter-on-quarter (QoQ) growth but a 0.8% decline year-on-year (YoY). The DET EBIT stood at Rs 200 crore with a margin of 13.5%, while the segment’s profit after tax (PAT) dropped 28.3% YoY to Rs 124 crore.

Cyient’s management revised its FY25 constant currency (CC) revenue guidance downward to a contraction of 2.7% from a previously expected flat performance. The EBIT margin outlook for Q4 FY25 was also trimmed to 13.5% from the earlier estimate of 16%.

The CEO’s resignation, which comes less than two years into his three-year term, caught investors off guard, further exacerbating concerns. Krishna Bodanapu, the company’s former CEO and Vice Chairman, has taken interim charge of operations.

JP Morgan downgraded Cyient to a “neutral” rating, slashing the target price to Rs 1,750, implying an upside potential of 17.5% from the current levels. The firm cited the abrupt CEO exit and reduced guidance as key reasons for the downgrade, adding that the company’s challenges in achieving high single-digit growth and a return to 16% margins in FY26 were concerning.

Emkay Global also cut its rating to “reduce,” with a target price of Rs 1,700, reflecting a potential upside of roughly 14% from the stock’s current levels. The brokerage noted weak execution, missed margin estimates, and the abrupt leadership change as factors weighing on the stock’s outlook.While revenue performance was in line with estimates, Cyient saw mixed trends across segments. The DET segment’s growth was driven by Aerospace, Connectivity, and New Growth Areas, while Sustainability saw its third consecutive quarterly decline. Notably, order intake reached an all-time high of $312.3 million, with 13 large deals contributing $234.5 million in contract value for Q3 FY25.However, the right-shifting of several deals into Q1 FY26 has tempered growth expectations for Q4, the brokerages noted. Despite the challenges, the company’s management remains optimistic about achieving a 16% margin in FY26, backed by a strong order book and improving demand in key verticals.

Cyient shares, which ended Thursday’s session up 2% ahead of the earnings announcement, have declined 32% over the past year and 24% in the last month.

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