Cyient Reports 67.7% Drop in Q4 Profit, Shares Fall 4%
Cyient slips 4% on posting Q4 results; PAT falls YoY; Motilal retains Sell
Business StandardImage: Business Standard
Cyient, an Indian information technology firm, reported a 67.7% year-on-year decline in net profit for Q4FY26, falling to ₹54.8 crore. Following the announcement, shares dropped 4% to ₹898.75. Motilal Oswal Financial Services maintains a 'Sell' rating with a revised target price of ₹830.
- 01Cyient's net profit fell 67.7% year-on-year to ₹54.8 crore.
- 02The company's revenue from operations increased 0.92% to ₹1,926.9 crore.
- 03Shares dropped 4% to ₹898.75 following the Q4 results announcement.
- 04Motilal Oswal maintains a 'Sell' rating but raises the target price to ₹830.
- 05Analysts expect limited near-term earnings upgrades for Cyient.
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Cyient's shares experienced a 4% decline, reaching an intra-day low of ₹898 on the Bombay Stock Exchange (BSE) after the company disclosed its Q4FY26 results. The information technology firm reported a significant 67.7% year-on-year decrease in net profit, which fell to ₹54.8 crore from ₹170.4 crore in the same quarter last year. Sequentially, profits dropped 40% from ₹91.8 crore. Despite this decline in profit, revenue from operations rose slightly by 0.92%, totaling ₹1,926.9 crore, up from ₹1,909.2 crore year-on-year and increasing 4.2% quarter-on-quarter from ₹1,848.5 crore. In response to the results, the board approved a buyback of equity shares worth ₹720 crore at ₹1,125 per share. Motilal Oswal Financial Services has retained a 'Sell' rating on Cyient, adjusting its target price to ₹830 from ₹690, citing a soft outlook for Q1FY27 and limited visibility on execution. The brokerage has also reduced its earnings estimates for FY27 and FY28 by 2.7% and 1.8%, respectively, while maintaining a conservative valuation approach.
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The decline in net profit and stock price may affect investor confidence and could lead to a cautious approach among potential investors and stakeholders.
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