Cyient shares surged 10% in morning trade on Friday after the company announced its Q2 results for the September quarter of FY27. The rally followed a nearly 9% quarter-on-quarter increase in profit at its Digital, Engineering, and Technology (DET) business. The board also declared an interim dividend of ₹12 per share.
The stock opened 5% higher at ₹1,200.70 on the NSE, ending its three-day losing streak. It climbed to an intraday high of ₹1,255. At 9:40 AM, Cyient shares traded 9% higher at ₹1,247. About 4 million shares worth ₹504.61 crore changed hands in the first 25 minutes of trading.
Despite the rally, Motilal Oswal Financial Services (MOFSL) retained its Sell rating on the stock, with a target price of ₹1,020.
Key Highlights
- Cyient shares surged 10% after the company's quarterly performance and dividend announcement.
- The board declared an interim dividend of ₹12 per share, with October 28 fixed as the record date.
- Motilal Oswal retained its Sell rating and set a target price of ₹1,020, implying an 11% downside from the previous close.
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Cyient Q2 Results: DET Business Shows Growth
Cyient's DET business reported revenue of $174 million in Q2FY27, marking 7.5% quarter-on-quarter growth in constant currency terms. Transportation and Mobility grew 4.5%, while Network and Infrastructure remained flat. Strategic Units declined 1.5% during the quarter.
The adjusted EBIT margin for the DET business stood at 14.2%. Its profit after tax (PAT) rose 8.7% quarter-on-quarter and 12% year-on-year to ₹153 crore.
However, the company's consolidated net profit fell 7% year-on-year to ₹132.5 crore from ₹143.9 crore in the corresponding quarter last year. Total income increased 22.5% to ₹2,243.6 crore from ₹1,831 crore.
MOFSL expects DET revenue, EBIT, and adjusted PAT to grow 25.5%, 40.3%, and 33.2%, respectively, year-on-year in the second half of FY27. The brokerage turned incrementally positive on the business following better-than-expected revenue, margins, and order intake.
DET order intake grew 21% year-on-year to $158 million, with net-new deals accounting for 34–37% of the total. However, the brokerage said organic growth remains a key monitorable. It raised its FY27 and FY28 earnings-per-share estimates by 1.9% and 2.6%, respectively, and increased the DET valuation multiple to 12 times FY28 estimated EPS from 10 times earlier.
Cyient Dividend and Share Price Target
Cyient declared an interim dividend of ₹12 per equity share, representing 240% of the ₹5 face value. The record date is October 28, 2026, and the company said the dividend will be paid by November 17.
MOFSL reiterated its Sell rating and maintained a sum-of-the-parts-based target price of ₹1,020. This indicates an 11% downside from the previous closing price of ₹1,144.
Meanwhile, SBI Securities' Sudeep Shah identified ₹1,230–₹1,240 as the immediate support zone. A sustained move above this range could support the stock's near-term outlook. The immediate resistance is ₹1,280, with a breakout potentially opening the way toward ₹1,320–₹1,350. A fall below ₹1,230 could push the stock toward ₹1,200.
In conclusion, the Q2 results and dividend announcement have boosted investor interest in Cyient. However, investors will watch for broader organic growth and sustained revenue improvement as the stock approaches key technical levels.
