Cyient Ltd. announced a share buyback on Thursday, April 23, worth ₹720 crore. According to reports from CNBC TV18, ET Now, and Upstox, the company plans to repurchase 64 lakh equity shares, representing 5.76% of its total paid-up equity share capital. The buyback price has been set at ₹1,125 per equity share, implying a 20% premium to Cyient's closing price on Wednesday. As per ET Now, this marks the company's first capital return through the route since 2019. The buyback announcement comes alongside Cyient's Q4 FY26 financial results for the quarter and year ended March 31, 2026.
The buyback will be carried out through the tender offer route, wherein the company buys back shares from existing shareholders at a fixed price, typically at a premium to the prevailing market price. As reported by CNBC TV18, members of the promoter and promoter group of the company will not participate in the proposed buyback. Based on the March quarter shareholding pattern, promoters of Cyient had a 23.28% stake in the company. The record date for any bonus issue remains to be determined. Additionally, as per ET Now, the company's board has decided not to proceed with dividend distribution and will also explore a fundraise to support growth.
Cyient reported consolidated net profit at ₹54.8 crore against ₹170 crore reported in the year-ago period. The loss was primarily due to a one-time exceptional charge of ₹71.2 crore related to a proposed acquisition that did not go through. According to ET Now, the company's Digital, Engineering, and Technology (DET) segment's revenue stood at ₹1,500 crore, with QoQ growth of 0.8% and YoY growth of 7.4%. The DET EBIT was ₹185 crore with a margin of 12.4%, while DET PAT was ₹138 crore with YoY de-growth of 9.1%.
For the full financial year FY26, Cyient's DET Revenue reached ₹5,819 crore, showing YoY growth of 5.5%. The DET EBIT stood at ₹712 crore with a margin of 12.2%, while DET PAT was ₹588 crore with YoY growth of 7.2%. As per ET Now, the DET FCF was ₹731 crore with FCF to Normalised PAT conversion of 124.3%. The company's Cyient Semiconductors delivered strong Q4 performance with revenues of $7.2 million, marking the fourth consecutive quarter of QoQ growth.
Speaking on the buyback, Krishna Bodanapu, Executive Vice Chairman and Managing Director, stated that the board trusts the fundamentals of the business and believes its intrinsic value is not reflected in the current market price. According to ET Now, he expressed confidence in strong cash flow to invest in future growth. Sukamal Banerjee, Executive Director and CEO, noted that FY26 was a year of stabilization and transformation, with the company winning several notable deals and achieving significant QoQ and YoY growth in Transportation and Mobility. The management emphasized their focus on three strategic initiatives: market impact, technology adoption, and organizational effectiveness.
