Cyient DLM Limited has released the transcripts of its Q3 FY26 earnings conference call, which was held on January 20, 2026. The call featured insights from Non-Executive Chairman Mr. Krishna Bodanapu, Managing Director and CEO Mr. Rajendra Velagapudi, and CFO Mr. R.M. Subramanian. During the call, management highlighted a strong order momentum with a book-to-bill ratio above 1 for the third consecutive quarter, indicating sustained demand and effective commercial strategy. New wins are largely attributed to customers onboarded in the past year, demonstrating successful investments in customer acquisition. The company is strengthening its sales engine and deepening customer engagement by participating earlier in their design cycles, positioning itself as a strategic collaborator. While revenue for the quarter was soft due to year-end holiday periods and tariff-related uncertainties causing some customer-specific push-outs, these are expected to be resolved in the current quarter. The company anticipates a stronger performance in the upcoming quarter and for the next financial year. A significant positive development is the continued strengthening of the margin profile, with new orders forecasted to yield better margins. The quality of the order book has also improved, shifting towards high-value programs and efficient execution, reflected in double-digit EBITDA margins. Management discussed traction in high-growth industries like automotive, industrial, and medical, which are central to their long-term strategy. The company is also focusing on expanding its sales organization, building operational excellence through automation and digitization, scaling its Build-to-Spec (B2S) capabilities, and expanding into new markets, particularly Europe and defense sectors. Financially, Q3 FY26 consolidated revenue stood at ₹303 crore (₹3,033 million), a 31.7% year-on-year decline, primarily due to the completion of a large cyclical order in FY25. The order book remained healthy at ₹23.5 billion. Normalized EBITDA was ₹309 million, with a margin of 10.2%, an improvement of 207 basis points year-on-year, despite a reported EBITDA of ₹275 million (9.1% of revenues). Normalized PAT was ₹138 million, a 18.6% year-on-year decline, with a PAT margin of 4.6%. The company reported two one-off expenses: M&A evaluation expenses of $17.75 million and an impact from the new wage code of ₹16.3 million. Looking ahead, Cyient DLM expects positive year-over-year revenue growth in Q4 FY26 and anticipates FY27 to be substantially better than FY26. The company is managing tariff impacts through various customer-centric options and exploring both organic and inorganic growth opportunities.
