Several companies announced significant corporate actions that are expected to influence trading activity. Tata Capital successfully allotted ₹2,030 crore worth of Non-Convertible Debentures on a private placement basis, while Ratnaveer Precision plans to issue equity shares worth ₹330 crore on a rights basis. ITI received listing approval from both BSE and NSE for 19.65 lakh preferential shares issued to promoters at a premium of ₹290.25 per share. Additionally, GNG Electronics saw promoter Vidhi S Khandelwal reduce her stake by selling a 3.9% shareholding, bringing her total holding to 74.77%.
Cyient shares surged 4.34% to an intraday high of ₹883.45 following the announcement of the ₹720 crore share buyback program's record date. However, the company's latest financial results revealed mixed signals with net profit declining 67.7% year-on-year to ₹54.8 crore for Q4, compared to ₹170.4 crore in the previous year. Sequentially, profit dipped 40% from ₹91.8 crore. Despite the profit decline, revenue from operations remained relatively stable at ₹1,926.9 crore, showing a marginal 0.92% increase year-on-year and 4.2% quarter-on-quarter growth from ₹1,848.5 crore. The board also approved the ₹720 crore buyback program at ₹1,125 per share, offering existing shareholders a premium of nearly 33% on the closing price.
Cyient's FY26 annual report highlights strategic transformation with focus on three complementary growth vectors—DET (engineering services and tech-led transformation), DLM (engineering-led manufacturing), and the newly carved-out semicon business (IP-led, AI-driven silicon innovation). DET order intake grew 5% year-on-year in H2, supported by sharpened go-to-market strategy, record large-deal funnel, and deeper key account traction with key account revenue growing 13%. DLM entered FY27 with its highest-ever order book and book-to-bill ratio of 1.5x. The company maintained healthy cash generation with strong free cash flow conversion of ~164% FCF/PAT, funding higher dividends and the ₹7.2 billion buyback (~5.8% equity) with record date of June 17.
Cyient ended FY26 with net cash of approximately ₹15.5 billion, though leverage is expected to rise following acquisitions of TAO Digital and Kinetic Tech, ongoing semicon investments, and the buyback. The company's top-20 client concentration increased to 62% in FY26, with the top client contributing 15%/19% of group/DET revenue. Collections increased modestly with DSO up by 2 days, mainly led by increase in DET segment, while DLM inventory turnover days increased by 63 due to weak revenue and customer-specific program requirements. Emkay Global has retained its 'REDUCE' rating while raising the target price to ₹900 from ₹850, citing that corrective actions underpin hopes of growth rebound.
