Transcript of Q4 FY 26 Results Conference Call

30 July 2026 BSE Limited National Stock Exchange of India Ltd PJ Towers, 25th Floor, Exchange Plaza, Dalal Street, Bandra-Kurla Complex, Bandra (E), Mumbai 400 001. Mumbai-400 051. Scrip Code: 532175 Scrip Code: CYIENT Dear Sir/ Madam, Sub: Transcript of Q1 FY27 Results Conference Call Please find enclosed the transcript for the Q1 FY27 results’ conference call conducted after the meeting of Board of Directors held on 23 July 2026. This is for your information and records. Thanking you For Cyient Limited Ravi Kumar Nukala Dy. Company Secretary Cyient Ltd. 4th Floor, A Wing, 11 Software CIN: L72200TG1991PLC013134 Units Layout, Madhapur www.cyient.com Hyderabad -500 081 Company.secretary@cyient.com India T +91 40 6764 1000 F +91 40 2311 0352 “Cyient Limited Q1 FY2027 Results Conference Call” July 23, 2026 Management: Mr. Krishna Bodanapu - Executive Vice Chairman & Managing Director Mr. Sukamal Banerjee - Executive Director & Chief Executive Officer Mr. Shrinivas Kulkarni – Chief Financial Officer Page 1 of 17 Cyient Limited July 23, 2026 Moderator: Ladies and gentlemen, good day and welcome to the Cyient Limited’s Q1 FY27 results conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this call is being recorded. I now hand the conference over to Mr. Krishna Bodanapu, Executive Vice Chairman and Managing Director. Thank you and over to you, sir. Krishna Bodanapu: Thank you very much, Inba, and good evening, ladies and gentlemen. Welcome to Cyient Limited’s earnings call for Q1 of FY2027. I am Krishna Bodanapu, Executive Vice Chairman and Managing Director, and present with me on this call are Sukamal Banerjee, Executive Director and CEO, and Shrinivas Kulkarni, Chief Financial Officer. I would like to mention that some of the statements made in today’s discussions may be forward-looking in nature and may involve risks and uncertainties. A detailed statement in this regard is available on our investor update, which has been e-mailed to you and also posted on our corporate website. This call will be accompanied by an earnings call presentation. The details of the same have already been shared with you. We continue to report group performance under four segments, DET, DLM, Semiconductor, and others. While the focus of this call will remain the DET segment, I will spend some time on Semiconductor and DLM, since these also represent a significant value of the Cyient group portfolios. Group numbers include performance of all four segments. Coming to some key updates for this quarter, I will first start with Cyient’s Semiconductors. As many of you would remember, our semiconductor business has three verticals. The services business, where we deliver semiconductor services to companies. The custom ASIC turnkey business, where we design and source chips and deliver chips at a more mature nodes to companies and evolving custom product/ASSP business where we will own the intellectual property and supply chips to companies. The services business continues to grow. You may have seen some announcements on this. We won a deal from the Semiconductor Complex of India to upgrade their fab in Mohali and many other deals that we continue to have a very strong pipeline on the semiconductor business, which continues to grow. Now coming to the second part, which is the custom ASIC business. The pipeline here now stands at more than $100 million and is building fast, powered by a wave of new design wins and deepening roster of blue-chip marquee clients. Our compound semiconductor initiatives continue to advance, anchored by a push into the Indian gallium nitride or GaN power market. We launched seven new GaN powered chips, leveraging the Navitas technology, to rapidly growing demand for high-efficiency, high-power density solutions across AI data centers, telecom, fast-charging consumer applications, industrial power systems, and e-mobility platforms. Page 2 of 17 Cyient Limited July 23, 2026 Now coming to the third part or the third pillar, which is the custom ASSP business. There are two parts to it, low-power and high-power. To increase our spread and reach in the low- powered ASSPs, we acquired Kinetic Technologies. Q1 was the first quarter where we operated this recently acquired business, fully consolidated it, and the combined revenue of Cyient and the Kinetic Technologies business is $17.9 million. Our organic semiconductor business grew 5% quarter-on-quarter to $7.5 million, marking our fifth consecutive quarter of organic growth above 5%. Also, if you look at the high power ASSP business, we continue to make significant progress in research and development efforts. While Kinetic gives us access to low power and credibility in power, the high power business is being developed organically, which is where much of our cash flow is going and which is what has led to lower operating profitability. The team is fully on board, the research phase is completed, and now development is in full swing, positioning us to address one of the fastest growing demand areas in the industry. Turning to a major milestone, as we highlighted on May 25, 2026, we signed a financing agreement with EAAA at a post-money valuation of $500 million. I am pleased to announce that we have closed this round $30 million of fresh capital raised through a combination of debt and equity is in place. This is a strong vote of confidence in our strategy and our trajectory and gives us the balance sheet strength to invest in growth and scale. Looking ahead, we remain confident in our outlook for the year. With the recent fundraise closed and an expanding pipeline and strong underlying momentum across the business, Cyient Semiconductors is well positioned for years to come. Now moving on to Cyient DLM. Q1 FY27 has begun on a very strong note, reinforcing the message from our previous earnings call that the underlying strength of our business remains intact and the investments we have made over the last few years are translating into tangible results. As you know, this is also starting to reflect in the valuation of Cyient DLM, which is an encouraging validation of the market’s confidence in our direction, our capability, and our credibility. The quarter played out against a backdrop of continued geopolitical uncertainties, evolving design patterns, demand patterns, and global supply chain disruptions including the West Asia crisis. Despite this, Cyient DLM stayed firmly focused on execution, enabling us to consistently meet our delivery commitments and further strengthening customer trust. Our order book momentum there continues to be a strong anchor for our confidence, with the quarter closing at the highest ever order book, supported by a strong order inflow and a book-to-bill ratio of in excess of 1.5. This was complemented by strong revenue growth year-on-year across a diversified revenue mix and sustained double-digit EBITDA margins for four consecutive quarters. This reflects our focus on operational excellence, revenue quality, and disciplined cost management. Alongside this, key leadership hires in strategy, sales, and operations are now substantially complete, meaningfully strengthening our go-to-market engine and positioning us to accelerate growth ambitions. Looking ahead inside DLM, the structural drivers of our Page 3 of 17 Cyient Limited July 23, 2026 business remain firmly intact, rising electronic content, supply chain diversification, and the broader outsourcing strength. With our differentiated design-led manufacturing model and our strong customer relationships, Cyient DLM is well positioned to capitalize on these opportunities. Lastly, during the quarter, Cyient successfully completed our share buyback program, extinguishing 6.4 million equity shares at a price of Rs.1,125 per share, aggregating to Rs.720 Crores. This represents approximately 5.7 [Showing first 8,000 characters — download PDF for full document]