According to reports from The Economic Times and The Hindu BusinessLine, Cyient has approved a share buyback worth ₹720 crore, marking the company's first capital return via this route since 2019. The engineering and technology services company will buy back up to 64 lakh shares at a price of ₹1,125 per share, representing a 20% premium over the last traded price. As reported by Angel One, the decision reflects confidence in the company's business fundamentals and belief that the current market price does not fully reflect its intrinsic value. Krishna Bodanapu, Executive Vice Chairman and Managing Director, stated that the board felt the intrinsic value of the company's business fundamentals is not reflected in the current market price, and emphasized that while making the buyback, they are confident of having strong cash flow to invest in future growth. The strong cash position will allow Cyient to invest in future growth while returning value to shareholders.
As reported by The Economic Times and The Hindu BusinessLine, Cyient delivered robust full-year performance with DET revenue reaching ₹5,819 crores, growing 5.5% year-on-year. The company's EBIT for FY26 stood at ₹712 crores with a margin of 12.2%, while PAT reached ₹588 crores, showing a 7.2% YoY increase. The free cash flow for FY26 was ₹731 crores with a conversion rate of 124.3% to normalised PAT. For the fourth quarter specifically, DET revenue stood at ₹1,500 crores with quarter-on-quarter growth of 0.8% and year-on-year growth of 7.4%, though there was a contraction in constant currency revenue by 2.4% QoQ and 1.5% YoY. The EBIT for Q4 was ₹185 crores with a margin of 12.4%, while PAT was ₹138 crores, reflecting a YoY decline of 9.1%. According to Angel One, free cash flow remained strong at ₹226 crore for Q4. Krishna Bodanapu noted that during the year, the Cyient group sustained its growth momentum with sequential quarter-on-quarter growth, delivering results in line with expectations across key segments, with their strong cash flow and cash position giving them confidence to invest in the business as well as return value to shareholders.
According to Angel One, Cyient Semiconductors delivered a strong quarter with revenue of $7.2 million and recorded its fourth consecutive quarter of sequential growth. The company is strengthening its position in custom chip design and plans to explore raising funds through debt or equity to support expansion. This semiconductor segment has emerged as a key growth driver, with the company's strategic focus on AI and digital capabilities supporting performance across the business.
According to The Economic Times, total expenses rose 5.4% year-on-year to ₹1,786 crore, reflecting higher operating costs and the impact of ongoing investments in capabilities and growth initiatives. The company demonstrated strong cash generation with free cash flow of ₹226 crores for Q4 with a conversion rate of 163.1% to normalised PAT, and ₹731 crores for FY26 with a conversion rate of 124.3% to normalised PAT. This operational investment strategy appears to be part of the company's long-term growth strategy despite current earnings pressure.
According to Angel One, Cyient share price (NSE: CYIENT) closed at ₹934.90 on April 23, down ₹26.90 (2.80%) for the day. The stock opened at ₹952.15, touched an intraday high of ₹961.85 and a low of ₹933.05. The stock has a 52-week high of ₹1,376.00 and a 52-week low of ₹750.30, while offering a dividend yield of 3.21% with a quarterly dividend of ₹7.50 per share. The combination of strong revenue performance, robust cash generation, and the significant share buyback announcement, despite the profit decline, suggests the market is focusing on the company's long-term strategic positioning and commitment to shareholder value creation through both operational investments and capital returns. Cyient ended FY26 with steady growth, strong cash flow, and improving business momentum, with the buyback signaling management confidence while continued investment in AI, engineering services, and semiconductors is expected to support long-term growth.
