Shares of Cyient fell by more than 9% on July 26 after the company’s first-quarter earnings for FY25 disappointed investors. The IT firm’s reported revenue and margin were significantly below analyst expectations, which contributed to the decline in share price.
Additionally, Cyient’s management revised its FY25 revenue growth guidance for its Digital, Engineering, and Technology (DET) segment, lowering it from a high single-digit growth projection to flat year-on-year growth. They also indicated that the second half of the year would be better than the first.
Nuvama Institutional Equities described the Q1 results as “shocking” and noted that only reasonable valuations could prevent further downside for Cyient. The brokerage highlighted that the company now needs a compound quarterly growth rate (CQGR) of over 3% to achieve its flat YoY revenue guidance for FY25, which they consider a challenging target given the current broad-based market weakness.
As of 12:20 PM, Cyient shares were trading 6.84% lower at ₹1,764.65, reflecting investor concerns over the company’s financial outlook.
