Cyient is a global engineering and technology solutions firm (formerly Infotech Enterprises) serving industries like aerospace, railways, and semiconductors. It recently reported its Q4 FY25 earnings (year ended March 2025).
The results show a modest rise in revenue but a drop in profitability, which caught investors’ attention. In this article, we break down the numbers – net profit, sales, margins, EPS and key ratios – and explain why Cyient’s share has been dominated by a profit slip even as sales held steady.
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Why did Cyient’s profit dip even as revenue rose?
In Q4 FY25, Cyient’s consolidated revenue was ₹1,950.2 crore, up about 3.5% from ₹1,884.2 crore a year ago. Yet net profit fell sharply, down nearly 10% year‑on‑year to ₹170.4 crore (from ₹189.2 cr in Q4 FY24).
Analysts note that Cyient’s EBITDA margin plunged from ~20.1% last year to about 16.9% this quarter. In other words, the business generated slightly more revenue, but a smaller slice of it converted into profit. This squeeze in profitability is behind the “almost 10% profit fall” headlines.
Here are the headline numbers at a glance:
- Revenue: ₹1,950.2 crore in Q4 FY25, up 3.5% YoY.
- Net profit: ₹170.4 crore, down 9.9% YoY.
- EPS (consolidated): ₹15.35, versus ₹17.07 last year.
- EBITDA margin: ~16.9% versus 20.1% in Q4 FY24.
Compared quarter-on-quarter (Q3 to Q4 FY25), the profit actually jumped (from ₹122.3 cr to ₹170.4 cr) due to a seasonal uptick, but the year‑on‑year (YoY) decline is more striking. This mixed picture, slight growth in sales but weaker margins, explains why investors are asking tough questions. For cyient limited share price watchers, the reaction was swift: the stock fell over 7% on the day of results, reflecting disappointment over shrinking margins.
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Comparing Q4 and full-year performance
Below is a quick comparison of Cyient’s key financials for Q4 and the full fiscal year:
| Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 |
| Revenue (₹ cr) | 1,950.2 | 1,884.2 | 7,457.0 | 7,213.1 |
| Net profit (₹ cr) | 170.4 | 189.2 | 615.7 | 682.8 |
| EPS (₹) | 15.35 | 17.07 | 55.51 | 61.71 |
The full-year (FY25) numbers show a similar trend. Cyient posted revenue of ₹7,457 cr in FY25 (up ~3.4% from ₹7,213 cr), but net profit fell to ₹615.7 cr (down about 9.8% from ₹682.8 cr).
This was mostly due to increased spending and some one‑time impacts. Over FY25, earnings per share also dropped (from ₹61.71 to ₹55.51), reflecting the lower profits. The company did maintain good cash flow – free cash flow was robust at 132% of PAT, but the income growth did not translate into higher profits, dampening sentiment.
The board has recommended a final dividend of ₹14 per share (₹26 total for FY25) as a comfort to shareholders, but many investors are focused on the earnings trend.
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Breaking down costs and margins
So, where did the profit margin go? Analysts point to a few culprits. Cyient’s business is split into verticals like aerospace & defence, transportation, and communications. In Q4, revenue in these segments was fairly flat or slightly down in constant-currency terms.
With sales not rising much, fixed costs and overhead pushed up as a percentage of revenue, squeezing margins. In particular, one swing factor was the mix of projects – Cyient noted that its Design, Engineering & Technology (DET) business saw only a 1.2% YoY revenue drop in USD terms, but additional input costs (like hiring engineers and technology investments) kept EBIT margins under pressure. The net result was that even though sales in rupee terms ticked up, the profit margin shrank.
What analysts are saying
Market analysts have been vocal. Broking houses have cut their ratings and targets on Cyient stock after the Q4 miss. For instance, Motilal Oswal trimmed its target price to ₹1,120 (Maintain Sell), noting weak growth and underwhelming margins.
Global brokerages followed: Morgan Stanley chopped its target to just ₹1,050, pointing out that limited growth visibility and slim margins make the outlook challenging. A Mint report noted that these brokerages are pushing down earnings forecasts for FY26 and FY27, given the margin shock. In short, even though there’s some confidence in Cyient’s long-term prospects, analysts see short-term headwinds.
On the bright side, Cyient’s core order pipeline (bookings) has large deals waiting, and management stressed confidence in medium-term growth. But right now, the narrative is cautious. The stock’s recent slide (about 38% down over the last year) reflects that caution.
Investors watching the Cyient Limited share price will want clear guidance from Cyient on how it will recover margins. Some analysts are calling this a buying opportunity, noting the valuations are lower than peers, but others say to wait for evidence of a turnaround in profitability.
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Conclusion
Q4 FY25 results mean Cyient grew sales modestly but earned less profit on each rupee sold. The share price chart (embedded above) captures the market reaction – a disappointing trend for the past 6–12 months.
For long-term investors, it’s a reminder to dig into Cyient’s share analysis beyond headline growth. Future quarters will tell if Cyient can improve its cost efficiency or if the revenue growth can accelerate enough to boost profits. In the meantime, keep an eye on Cyient Limited share price updates and share news as the company and analysts update their views.
